The 401(k) is savings, the equity in the house is savings, the extra $7K is gravy and it'd be $13K if they took one less vacation https://twitter.com/reformedbroker/status/845251220038193152 …
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They have all kinds of options if they have a sudden expense. Stop the charity donation. Skip the vacation. Refi the house.
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If it's an actual emergency you can pull from the 401(k)
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exactly. I grew up dirt poor. If mother lost $20 bill that was 4 alarm fire emergency. $20k in emergency fund is not bad!
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