It is useable to a certain point. There will always be another emergency...big or small that I will have to take of. I will never live paycheck to paycheck again. That's one of the reasons i ended up in bankruptcy 8-10 years ago. If my savings is zero with money in my 401K, that's still living paycheck to paycheck because that money is not easily accessible and is primarily for retirement. I will never do it until it is my last, omega, el fin, final, resort. As long as I have savings, I have a guarantee I can pay all of my bills and not overshoot the budget for a birthday, Christmas, replacement items if they break, etc.
This rule has kept me very financially stable. When my car registration is due or I need new tires, I'm upset about it but I don't freak out like, OMG! What am I going to do?!?, because I ALWAYS have savings. For 8 years since BK, I have had ample money in savings for emergencies. And I pump up my reserves every week with $150, so that is $600 a month that I put in savings. Savings is the most important thing EVERYBODY can do financially. If an emergency comes up, you are still able to pay all of your bills on time.
Savings protects your credit rating! Never EVER live paycheck to paycheck as that is mistake #1. Fix that mistake, and you may never have a late payment again.
There are certain life circumstances that are very dire and can deplete your savings entirely and cause a late payment due to things out of your control such as job loss. But the more savings you have, the more control you have over these very negative events.
Having money is a tool to help you build credit as you use it to show you pay bills on time, are able to manage the flow of cash through credit cards responsibly, and have history of financial stability through your on time monthly payments over an extended period of time.
Again, never deplete your savings unless it is your final resort!
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