In a recent blog post on using a HELOC to save interest costs on your mortgage, I mentioned that I had basically converted my $10k emergency fund into a variable rate HELOC. A reader called me on that and asked how I could do that and still claim to be risk-averse, so I figured it was time to explain what I mean by "risk-averse".
The Yardstick
My main financial goal right now is to build my savings to a point where my investment income will cover my monthly expenses. Let's call that point "financial independence". At... |