Question

Describe a real or made up but realistic situation that could cause you or someone you know to have to use money from a financial reserve. (3-6 sentences)

Answer 1

Answer:

There are a thousand and one scenarios that would make me break my piggy bank.

Explanation:

If I came across a  very good deal, I'd draw from my financial reserve and empty it if need be to take advantage of such an opportunity.

Imagine for instance that a 2020 Chevrolet Silverado 2500HD truck which normally goes for about $34,000 is suddenly available for whatever legitimate reason for about $10,000 and its only 3 months old without dents or any mechanical fault, perhaps the owner needs cash for something equally more profitable to them, I'd grab the opportunity to buy it and resell at a higher price in order to turn a decent profit.

For a car that has only been used for three months, I can resell easily and very quickly at half the original price making a $7,000 in profit or I decide to hold on a little while can actually sell at a much higher price for nearly $30,000 perhaps one or two thousand dollars less and still make an extremely good profit.

Cheers