He's got an idea for emergency funds
We each contribute enough to get a full company match on our employers' 401(k) plans, and we have some money left over at the end of each month, which we add to our emergency fund.
My older brother suggested that we get a backup plan until we get enough in that emergency fund. He said that he got a home equity line of credit (HELOC) until he was able to have his own fund. We own our home with about $35,000 of equity. Both my wife and I have very good credit scores, so we should be able to get a HELOC and with a decent interest rate.
What do you think of this plan?
Some people get "money happy" and use the credit line for unnecessary luxuries like fancy travel or cars. However, from what you have said about your handling of money, I don't see you in that situation.
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