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Old 01-10-2006, 09:58 PM
wouql wouql is offline
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Default Re: Prioritizing extra money

Quote:
Originally Posted by Sweepsplayer
I tend to disagree that you should build up your entire emergency fund before earning your 401k match. That's money that you lose forever if you don't take advantage of it.
That's pretty much my thinking as well (and in this case, it's not a "one or the other"; I can afford to put some towards both.) Given a choice - hypothetically - between allocating 100% of some amount to an emergency fund and, say, 25% to a 401k (enough to fully match) and only 75% to an emergency fund, 25/75 seems like the right move to me.
It'll take a little longer (well, 33% longer I suppose) to finish setting up 3-6 months of expenses, but when it's a choice between 6 months and 8 months, I feel it's worth it to get the 401k money.

Thanks for the words, all. Any advice is welcome.
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