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Originally Posted by Elgin526
It doesn't make sense to have a large EF while we have debt.
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Not to argue, but just to offer an alternative point of view, many people feel just the opposite. When you are in debt is when it is most important to have a good EF. Otherwise, when an emergency arises, you are more likely to take on additional debt. What good is working on paying down your credit cards, for example, if as soon as an unexpected expense comes along, the only means you have to cover it is to charge it to your CC?
You mention health, disability and life insurance, all very good things to have. But what if you lose your job? How will you support yourself without an adequate EF? When I was jobless a few years ago, we lived just fine on our savings (and a little ebay income). If not for that EF, we either would have been forced to liquidate investments or rack up new debt to cover living expenses for 3 months.