This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
When you’re in a double jam, the credit card can become your new friend
I needed to utilize a credit card to help me float for a short time. But I wasn’t concerned about the temporary debt I was taking on; I knew it would all be paid off shortly. To prove it, I made my final car payment once I got my first paycheck.
From then on, I focused on building my liquid emergency fund while also investing.
I knew that a new job in a new city could go south at any point, and if I didn’t have emergency funds ready to deploy in case of an emergency, I would be screwed.
On top of all of this, I was alone in a new city without family or support. I had to be able to stand on my own two feet if the job didn’t work out or a financial inconvenience made itself known.
What is an ideal emergency fund?
6–12 months, depending on your lifestyle. If you have low expenses, multiple income streams, and a somewhat reliable job, then six months ought to do the trick.
If you, however, only have one income source, are less confident in the reliability of your job, have several dependents, and have higher expenses, you probably want to aim for a 12-month emergency fund.
The more reliable income streams you have, the less reliable you will need to be on an emergency fund.
If Your Credit Profile Is Decent, You Can Get Some Extensive Credit Limits
Some credit cards companies will give you 10k, 15k, 25k, 30k, 50k, etc. It all depends on your income bracket, credit profile, and [sometimes] your relationship with the bank.
If you are fortunate to get a large credit limit, this credit card can be your plan b for safe-keeping and utilized as a second emergency fund.
Many people forget that credit cards can be used to build wealth or for emergencies-the opposite of what they’re advertised for: to buy frivolous things.
Credit cards can buy you out of real jams (not optional jams like an unplanned vacation with the besties).
(Side Note: Credit unions tend to be more generous than regular banks. If you can establish a relationship with one, do it; they come in handy for credit, auto, student, and housing loans – in the case you need one.)
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.