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I keep a 6 month emergency fund as well. Not only does it cushion me from something like a layoff, it also gives me the freedom to resign, should I run into som

I keep a 6 month emergency fund as well. Not only does it cushion me from something like a layoff, it also gives me the freedom to resign, should I run into something unreasonable or unethical. As a rule, I try to prevent myself from being backed into a corner.

arielweisberg 13y ago
One way to get a leg up on retirement and start building an emergency fund is to start contributing to a Roth IRA. The principal on a Roth IRA is post tax dollars that you can withdraw without an express penalty (other then the fact that the rate you can contribute the money back each year is capped). As a bonus you will get much lower fees than if you contributed to a 401k that does not have employer matching. Check out Vanguard. It's not a substitute for having some amount of hard cash, but 6 months hard cash is a lot to have lying around IMO. There is going to be some risk depending on how you choose to invest. I totally agree WRT to the freedom and peace of mind, that is huge for me.