Question for a debate me an my friend are having

[BrazinBox]

Ok, so my friend has a strange concept of being broke and seems to think that having $5ooo in a savings account but only $10 in a checking is being broke.

I'm curious to see how many people agree to this concept.



Edit: This is a standard setup. A regular checking account and a savings account for the future, not saving for a house or car.

[emma-ba]

Could be if your friend doesn't have instant access to the money in the savings account or if he can't spend it because it's set aside for something else.

[VietBaka]

Could be a rainy day fund? Emergency fund?

[Lucille]

I agree completely with your friend. He/She is broke. I know people hate hearing this, but you are suppose to have at least 4-6 months living expenses saved at all times. You lose your job tomorrow what are you going to do? Emergency Funds do not exist for everyday things. I consider it zero dollars. Now if your friend has an additional 5000 on top of that well good for him. Tell him to tell me his secret.

[moadeep]

your friend is wise, they aren't touching their buffer/emergency $, so yeah, they are broke.

[Gir]

Depends, if this came up because he is being frugal and not unwisely spending money he's broke.
If it's because he's mooching off of others for stuff (especially non-necessities while employed) he's not.

[nasomi]

There's a big difference between being broke and being poor. I'm usually broke because I have a great deal of expenses, I have pre-determined money set aside for savings, so I don't have a lot of money to spend right now. I think you're thinking poor, while he's thinking broke. They're two different things.