I treated my HELOC as my emergency cash reserve for about 30 years. Only a couple of times in that period did I have to tap it for a genuine emergency, and I paid those balances down over time after the emergencies passed. But I am very glad that I did not have six months' worth of living expenses tied up in an "emergency cash reserve" for all 30 years. I found the opportunity cost too high.
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I treated my HELOC as my emergency cash reserve for about 30 years. Only a couple of times in that period did I have to tap it for a genuine emergency, and I paid those balances down over time after the emergencies passed. But I am very glad that I did not have six months' worth of living expenses tied up in an "emergency cash reserve" for all 30 years. I found the opportunity cost too high.
Post: Skimping on Cash
Link to comment from June 27, 2021