How would you pay for this?

[Anonymous]

Let’s say you needed to make a $20k home repair but weren’t comfortable using liquid savings to pay for the repair, because it would be the majority of what you have saved liquid, and you didn’t want to be left with nothing lest another emergency occur. What if, in the first quarter of 2026, you received your annual bonus that is slightly more than this amount.

What would you do?

A HELOC is an option, and you’d likely qualify for a personal line of credit. You also have a CC you could put this on, but interest rates would be highest there. Of course you could always use your savings, but then you’d be stuck if something came up. Thoughts?

[Anonymous]

Cheapest money is best money

[Anonymous]

Anonymous wrote:Cheapest money is best money

This is so true, but how would you combat the feeling of panic over having practically no liquid savings for nearly half a year?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Cheapest money is best money

This is so true, but how would you combat the feeling of panic over having practically no liquid savings for nearly half a year?

Np. I’d buckle down, cut expenses, and aggressively save.

Pay in cash.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Cheapest money is best money

This is so true, but how would you combat the feeling of panic over having practically no liquid savings for nearly half a year?

Pick the next cheapest option. Or, maybe a combination - use 10k of the savings and then finance the rest with whatever give the best interest/terms.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Cheapest money is best money

This is so true, but how would you combat the feeling of panic over having practically no liquid savings for nearly half a year?

Np. I’d buckle down, cut expenses, and aggressively save.

Pay in cash.

+1

[Anonymous]

Is it an emergency repair? If so, I'd use my savings and then in the event of another emergency, I'd put the next emergency on a credit card and then transfer it to a 0% interest card and pay it off before any interest is due. If not an emergency repair, I'd wait.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Cheapest money is best money

This is so true, but how would you combat the feeling of panic over having practically no liquid savings for nearly half a year?

No matter what you do, going forward keep more than $20k. I might get a loan but I'd hate it and try to pay it off aggressively, but also I keep more than $20k.

[Anonymous]

This is what the emergency savings are for! Use it and then beef it up later. If a 2nd emergency comes along, then you use other means (selling stock, 401k loan, credit card, HELOC)

[Anonymous]

Heloc as it basically invested in the thing you took equity from

[Anonymous]

Isn't the point of an emergency fund to pay for things instead of having to do a heloc?

[Anonymous]

Savings plus heloc.
Divide as you wish.

Heloc could be a minimum payment of $100 / month (or is), so keep this in mind.

[Anonymous]

I do think that unless this would leave you with less than $5k in your emergency fund, I would just use the emergency fund and focus on replenishing it.

However, this happened to us when it was slightly more than the emergency fund ($40k fund, $45k urgent repair, ugh). My financial advisor recommended a 401(k) loan. I was really skeptical - but if you're pretty confident you'll be at your job until you can pay it off, it can be a great deal, as the interest you pay goes into your 401(k)! So the only money you lose (assuming you pay back completely and on time and don't otherwise decrease your 401(k) deposits, etc) is the ROI on the money for the length of the loan.

The job thing is important though - if you lose or leave your job, you have to immediately pay it all back or face big penalties.

Something to consider.

[Anonymous]

I’d pay it on a cc and pay it off with savings. If you have another emergency you still have the other options available, and otherwise by q1 2026 you’ll be replenished anyways. I put everything on my cc for points so ymmv..

[Anonymous]

I'm hesitant to spend emergency cash funds at all because that will probably be my lifeline if I ever lose my job and have no income for a while and the market dips. I will always prefer unsecured personal loans over HELOC if the interest rate isn't insane. I just got one at 7%. Sometimes you can get 0% loans for home repairs through the company doing the work.