<prompt> Human: Starting off with I love this subreddit. Been really helpful looking at since subscribing. Now I apologize in advanced for long-winded question. Im planning for the future and the basic advice I see is first pay off credit, then save for emergency funds, then invest.However, as a newlywed, I am eager to start saving aggressively and investing with my wife. All of our credit is payed off. Only outstanding loan is our mortgage. We have a very small amount saved right now and have 20k in the market. I have a sizable 401k but she has no retirement plans to speak of. Both are 32. Heres my question. In our case, do you think it tremendously unwise to not create an emergency fund and start saving for fun and retirement? Heres why I think my situation is unique. All of our monthly spending is covered by my paychecks. I work for a large corporation. I have never seen anybody fired. We have had lots of re-orgs and layoffs but in my 13 years with the company, not a single person has been fired - all layed off with severance. I do a good job and avoid controversy. I am confident if I am let go, it would be a layoff with severance. The severances here are very good, in my case it would be 3 weeks per year served. Since I would receive 39 weeks severance in case of the emergency being let go, is it completely wreckless to assume that severance would cover an emergency fund? Or am I simply trying to justify avoiding a year of no discretionary no additional retirement savings. Any other advice for a young couple would be greatly appreciated.Thanks Edit: Great answers. Didnt really consider non-unemployment emergencies. Think Ill plan current savings at 75 emergency and 25 fun. Once emergency fund is built, then go off to other serious investingretirement. Thanks for keeping me on track.  <response>: Emergency fund is for emergencies - these emergencies include spendings such as: job loss as you have mentioned a family members unexpected medical condition quick investmentflip opportunities unexpected carhome repairs unexpected babyand the list goes on. While a job loss may be the most common emergency in todays age, there are other emergencies, while very unlikely, that occur in ones life. If you are very eager to start investing for retirement, I would advise you to do so while you are building your emergency fund on the side as well. Probably put in 5050. This way, when you do accumulate enough emergency funds, you can start saving a 100 into your fun retirement investment. And if something were to happen while you are building your funds hopefully not, youd at least be covered somewhat. 