Building an emergency fund and saving for retirement are both important goals. If you’re not sure which to prioritize, consider your specific circumstances.
It’s wise to have enough money in an emergency fund to cover your expenses for three to six months. Think about how secure your job is and set a goal that’s right for you.
When you invest for retirement, you’ll benefit from compounding, i.e., your contributions will earn interest, then you’ll earn interest on the interest. The sooner you start investing, the more you’ll benefit from compounding.
Everybody should have an emergency fund. Once you’ve got a safety net in place, saving for retirement can become your top priority.
If you can afford to save for both goals at the same time, go ahead. Figure out how much money you have available to work with each month and decide how to split it up
