No. of Recommendations: 9
One of those tricks includes setting up different "mental accounts", where we allocate funds to different accounts to serve different purposes. For example, many individuals set up retirement accounts to build up a nest egg that is not available to use prior to retirement. Occasionally tapping into this account would have the effect of removing the self-imposed restriction and freeing the funds for immediate use, with potentially disastrous implications to the individual's retirement goals. I suspect the temptation would be too much for many, including myself, so it's best to partition our savings, even if this exercise is only imaginary.

That's fine. It is okay to have different financial goals at the same time. It is okay to save for retirement in the far future and save for a new car in the near future. Lots of people, me included, set mental accounts like "I'm going to need a new roof in a couple years, I want to make sure I have cash for that when the time comes, so that's new roof money and not the trip to Vegas money." etc.

But read this word salad from the article:

Those who still have several decades left before retirement may want to give more focus to an emergency fund, however. Although you should still be saving what you can for retirement, if you don't have an emergency fund and an unexpected expense pops up, you'll need a safety net so that you won't need to withdraw money from your retirement savings to cover it.

Translation: You need to save more in your emergency fund, which means you can save less in your retirement fund. Because if you don't, you'll have less money in your retirement fund.

Math Alert! Either way you have less money in your retirement fund.

There is no way you can parse her sentence where it makes a lick of sense. It is just stupid advice.
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