Money in the Bank?

[282NC]

Because I don't know how much (medical) student loans will allow for living expenses, or even just to prepare for a delay in their disbursement, I have it in my head that I'll need to have a few thousand dollars in my bank account going into med school.

I'm currently in a gap year so it's either A. put ALL of my income towards student loans from undergrad or B. put back a few thousand for the above mentioned reasons.

Thoughts?

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[gyngyn]

Everyone needs an emergency fund that will get you through at least two or three months.

 

[jqueb29]

shawty what you drank

 

[282NC]

shawty what you drank

I secretly hoped to make people think about those lyrics when I wrote the title.

 

[Psai]

I secretly hoped to make people think about those lyrics when I wrote the title.

It worked, now it's stuck in my head
imma buy you a drank

 

[282NC]

Well, this has certainly been a productive thread.

 

[Mad Jack]

shawty what you drank

Beat me to it.

 

[gyngyn]

Sadly, I haven't the foggiest what you are all talking about...

 

[282NC]

Sadly, I haven't the foggiest what you are all talking about...

Youtube: T-Pain - Buy U a Drank. It'll be an enlightening experience.

EDIT: Also, thanks for you response earlier; it was actually helpful.

 

[LizzyM]

Your student loan interest rate is X.
If you have a credit card, the interest rate is Y.

If you pay off your loans but would have to use a credit card (basically borrowing at an interest rate of Y) for an emergency, then it is likely you will end up paying more than if you are slower in paying off your student loans at interest rate X but avoid borrowing at Y% by having a savings account that serves as a safety net in an emergency.

You could gamble that an emergency will never arise and you would be financially best off by paying off your loans as quickly as possible but how sure can you be that no emergency will arise?

 

[MangoPotato]

You cash it in to win the World Heavy Weight Title at Wrestlemania and then sell it for a cool 10k. Now you have emergency funds.