<prompt> Human: Just getting started on my financial plan and have determined that I would need approx. 10K to cover 6 months of expenses for the next few years. That seems like a reasonable emergency fund so Ive started putting all my savings 500-750month into this. I realize that by doing this, it will take about a year to a year and halfdepending on size of tax returnbonusany vacations I take to set up. Now Ive heard of another method where people allocate far less to an emergency fund say 100-200 month and instead get a LOC to cover any potential emergency spending. Id like to start investing in the market after I set up my emergency fund and putting a little more into my retirement savings. How should I be setting this up?  <response>: The emergency fund is unlikely to gain you much interest. If anything, its unlikely to even keep up with inflation. That said, its a price well worth paying for the financial security it provides.Ultimately, it comes down to risk vs reward. Sure, if you forgo the emergency fund, you can probably invest in the market faster. This is a riskier move, because not having an emergency fund is a risky thing to do.I personally would advise fully funding the emergency fund first, unless you have some sort of alternate safety net e.g. you know youll be bailed out by the bank of Mom and Dad. 