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1 BD/ 1 BA apartment in Old Irving Park coming available on November 1st.
Rent: $1600
Fully renovated with in unit washer & dryer. Covered garage parking available for ~$100.
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After being in a situation where I nearly lost everything, a six to 8 month emergency fund will always come first.
Pro
Emergency fund first. It's a bucket you want to fill and then put aside. Hopefully you don't have to use it for years and can then focus on different investments without worrying.
Definitely the emergency fund first. Have enough for 6 months of expenses and then max out everything else
Never cash. HYSA is basically cash and you can transfer out when needed
How about half to each?
Pro
Emergency fund, then roth IRA, then 401K
Pro
Yeah, agreed
Roth IRA because contributions can be pulled out literally at any time. so in a dire emergency situation you can do that.
OP has an emergency fund. I still think Roth is the better route. they can still continue to slowly "beef up" that EF over time which is what they are trying to do. Obv you don't want to remove money intended for retirement but on a dire emergency situation the money is there as an *option* which is key.
If you don't have an emergency then even better, your money grew tax free that entire time.
I would agree with you if they didnt have an EF but they do, so that's my POV.
Congratulations on being debt free. Would say emergency fund first (6-9 months). Keep in a cash equivalent type instrument (ie. HYSA, money market, t-bills, CDs, etc).
Definitely that emergency fund. Once that happens you’ll be able to contribute 15 percent of your gross income.
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