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ct-yankee t1_j6mxmwo wrote

Reply to comment by Beachboo07 in As a first time renter, is my budget realistic? by Beachboo07

>I not familiar with what you’re saying in that second paragraph …. How would that free up my income more?

If you have money sitting in a brokerage, and there is enough to finish your emergency fund and/or pay off a loan you have, then you will have more income that would have been going to build the emergency fund, or going to that loan, that you could deploy elsewhere.

In short, fewer of your incoming dollars would have a "job" when the emergency fund is done and the loan is gone. That is then free capacity.

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Beachboo07 OP t1_j6nj7dw wrote

Ah that makes more sense, thank you! I’m excited for this stupid loan to be gone .. it’s going to be such a relief. I can’t imagine how much I’ll be able to improve my finances when I can allocate that $500 a month to something else.

Thank you for your help on all of this I appreciate it a lot!

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