What is an "emergency?"

[mrskennedy]

What would/do you use your savings for? And do you think using it for career training is valid/wise? I'm waffling on this... And it's extremely frustrating!

[phathui5]

1) I would call that "not an emergency" unless you're finding yourself in a situation where you're suddenly a single mom and have to work or your partner is unable to work.

2) I wouldn't take money out of savings for a non-emergency unless you have a good chuck of money in there and will still have enough to cover an actual emergency after you take the money out.

[mightymoo]

Depends on the size of the fund I'd say. If you are talking about a small emergency fund, like $1000-3000, I would say no. If you are talking about a 6 months of expenses fund in case someone loses a job and the training would increase income (so it could be paid back) then I'd say yes.

[EmsMom]

I really think that emergency fund is for emengencies only. Unemployment would be an emergency so in that scenario, some well thought out job training would be an appropriate expenditure. Car repairs that must be done immediately and paid for immediately. A crown for a tooth. Emergency room. A $3000 vet bill (this is my emergency this week - yikes!). Further, I would avoid spending that emergency fund in any way possible (except credit card debt). Job retraining education might be able to be financed through a loan, for example. If you took out a deferred student loan for the training and then put some money aside to repay it every month (in an interest bearing account), you might be able to repay a big sum right off the bat.

[MissMommyNiceNice]

We jsut had one of these. It was a $600 water pump to keep our car going. Bye bye half of savings!

You would sure feel bad if you were taking training and then suddenly had to stop because you couldn't get there any more because your car wouldn't run. Just food for thought...

Can you get financial aid for your training?

[Denvergirlie]

If you have to ask if it's an emergency, then it's not an emergency.

My .02 cents

[mrskennedy]

Originally Posted by Denvergirlie

If you have to ask if it's an emergency, then it's not an emergency.

My .02 cents

: Doesn't really make it any easier though, just more frustrating.

[mrskennedy]

Originally Posted by hklinefelter22

We jsut had one of these. It was a $600 water pump to keep our car going. Bye bye half of savings!

You would sure feel bad if you were taking training and then suddenly had to stop because you couldn't get there any more because your car wouldn't run. Just food for thought...

Can you get financial aid for your training?

The training is online, and we're blind and don't have a car. (Imagine the insurance if we tried to drive! !) No fin. aid--wouldn't take it anyway b/c I refuse to pay interest on loans.

[mrskennedy]

Originally Posted by EmsMom

I really think that emergency fund is for emengencies only. Unemployment would be an emergency so in that scenario, some well thought out job training would be an appropriate expenditure. Car repairs that must be done immediately and paid for immediately. A crown for a tooth. Emergency room. A $3000 vet bill (this is my emergency this week - yikes!). Further, I would avoid spending that emergency fund in any way possible (except credit card debt). Job retraining education might be able to be financed through a loan, for example. If you took out a deferred student loan for the training and then put some money aside to repay it every month (in an interest bearing account), you might be able to repay a big sum right off the bat.

Well, we ARE unemployed--living on social security and welfare, which we aren't proud of... We'll see what happens.

[MissMommyNiceNice]

How much is the training, for what kind of job, and how much is in your savings? Maybe that would help us understand the situation more. If you're on welfare, etc, maybe it IS an emergency...

[mammastar2]

I don't get why it has to be an 'emergency'? Can't it just be a good idea?

So long as it's properly researched and you know you're going to be able to use it to make your life better, training is always a good choice, in my view. Better than not getting a qualification and continuing to live in poverty just so you have a cushion in case things get even worse...

[mrskennedy]

Originally Posted by mammastar2

I don't get why it has to be an 'emergency'? Can't it just be a good idea?

So long as it's properly researched and you know you're going to be able to use it to make your life better, training is always a good choice, in my view. Better than not getting a qualification and continuing to live in poverty just so you have a cushion in case things get even worse...

Yeah, I thought of that too. DH and others I trust will support my decision either way, but they're leaving it up to me. Still considering my options here and whether I've missed any...

[mrskennedy]

Originally Posted by hklinefelter22

How much is the training, for what kind of job, and how much is in your savings? Maybe that would help us understand the situation more. If you're on welfare, etc, maybe it IS an emergency...

Training is $1710, paid in 4 monthly payments with no interest. Savings is about $600, and we have $800 coming in Sept. from a life insurance policy we don't need. That's $1400, and I have monthly freelance work that would cover the rest. All I really need to do is make sure there's enough for the monthly payments of about $428 each.

There's never a guarantee, really. But I think this training is my best bet for work. It's medical transcription, and I'll be able to train online whenever it's convenient and still stay home with DS. They provide a list of at-home employers upon graduation, and I've already researched several and feel that with the training, I could easily get hired by one or more of them.

Without this, we could be living off the government indefinitely, and we certainly don't want to do that, not to mention social security won't be around forever, and any job I'd get would offer insurance, 401K, etc.

[Stace]

Financial aid doesn't automatically mean a loan that comes with interest. There are tons of grants and scholarships out there.

[mrskennedy]

Originally Posted by Stace

Financial aid doesn't automatically mean a loan that comes with interest. There are tons of grants and scholarships out there.

This program doesn't take grants. So yes, it's either pay 4 monthly payments of $400 and change, or get a loan with interest.

[mightymoo]

While it sounds like its a good move for you, I'd be concerned about taking savings to zero. If you do freelance work, I would work to save up the money via freelance and then take the course. That way you don't put yourself in jeopardy by having no savings.

[MaddieMay]

Now I know you said no students loans, but hear me out.

Can you apply for a subsidized loan? With a subsidized loan, you don't start paying interest until six months after graduation. You can essentially borrow the money and right before your six months are up, pay off the loan. If you are pretty certain you'd have a job by then, you'd essentially be able to do this very easily and perhaps even be able to pay it off very early.

I wouldn't take your savings to zero.

[mammastar2]

Have you checked the employment rates of graduates of the particular program, and what you can expect to make?


Does the program provide placement assistance once you're done?

Are there other similar programs that accept grants?

Have you contacted the prospective employers to learn how they view the training program?

Training = good. Privately run for-profit training programs = caution. Not a red light, but a yellow one.

[mrskennedy]

Originally Posted by mammastar2

Have you checked the employment rates of graduates of the particular program, and what you can expect to make?
Yes. I even know people personally who graduated from the program.


Does the program provide placement assistance once you're done?
Yes, national, regional and local employer directories; sales letter/resume review; etc.

Are there other similar programs that accept grants?
IMO the similar programs aren't as good, and the school that offers a similar program online--where I need it--has BBB and other complaints against it. They also provide less transcription practice and cost thousands more.

Have you contacted the prospective employers to learn how they view the training program?
Yes, the prospective employers wave their 2-5 years experience requirement b/c they trust and partner with this program.

Training = good. Privately run for-profit training programs = caution. Not a red light, but a yellow one.

It's not a yellow light to me, at least with this particular program.

[mrskennedy]

Originally Posted by Nicole!

Now I know you said no students loans, but hear me out.

Can you apply for a subsidized loan? With a subsidized loan, you don't start paying interest until six months after graduation. You can essentially borrow the money and right before your six months are up, pay off the loan. If you are pretty certain you'd have a job by then, you'd essentially be able to do this very easily and perhaps even be able to pay it off very early.

I wouldn't take your savings to zero.

What's the difference between a student loan and a subsidized loan, and where/how do you apply for one?