Originally Posted By: mightymousetech
Just curious why people don't consider a secured line of credit instead of stashing cash away in a bank account doing nothing? I would rather invest that 3-6 months of income and make money on it, then if an emergency happens, I have my LOC to fall back on, which is several years worth of income if needed.
Depending in what you invest, imagine a scenario when the economy takes a dump, your investments plunge in value and you lose your job.
Just curious why people don't consider a secured line of credit instead of stashing cash away in a bank account doing nothing? I would rather invest that 3-6 months of income and make money on it, then if an emergency happens, I have my LOC to fall back on, which is several years worth of income if needed.
Depending in what you invest, imagine a scenario when the economy takes a dump, your investments plunge in value and you lose your job.