No. of Recommendations: 2
This guy makes a good argument why an "emergency fund" is a bad idea and is pretty useless advice. Among other things, he says that (almost) nobody has an e-fund, anyway.

If that 20K is CC debt or anything > 10% interest, make it a priority to pay off. Hmm, the OP says it's 0% until mid 2015. So no hurry. Income 80K, so plenty of income available. About $5000/mo after taxes

I would prioritize in this order:

* 401K to get the full employer match (6% = $4,800/yr = $400/mo)
* $1100/mo into a bank account at ALLY or Alliant CU, etc. earning not quite 1%.
* Any excess, into that same bank account.
* When the bank account equals the debt, or when it stops being 0%, pay the debt from the bank account.
* Then put money into long-term non-IRA, non-401K investments. This is your "emergency fund". See the CYC blog.
* ASAP, start a Roth IRA -- even as small as $100. In 5 years you can withdraw what you've put in, tax free. Put $5000 in it as soon as you can. In 5 years from the time you opened it, that'll be your "emergency fund".
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