<prompt> Human: Hi, pf! I hope you all are well. As a budding amateur financial man, I have been trying to absorb everything I can like a sponge obviously questioning everything. I have recently stumbled across a blog from a Mr. Money Moustache I assume some of you must know it. In it he says that an Emergency Fund is antiquated. His position is everything possible should be invested. If some big financial hardship happens you use a credit card, sell off some shares, and then pay off the credit card debt before the end of the month. Is this advice wise? Would this method provide enough liquidity in the case of a major or long lasting negative life financial event? I agree that every dollar possible should work for you, but not having much, if anything sitting in a savings account is curious. Thanks, all!  <response>: The advice to ignore a dedicated emergency fund is fine if you are relatively financially stable, all things considered. Some things that make a 0 emergency fund strategy viable: owning a home with enough equity built up that you can tap a home equity line of credit access to extra credit via credit cards and other forms of low-interest debt having low risk factors for financial emergencies in the first place good health, savings built up for insurance deductibles saving a high percentage of your income every month 50 so that if an emergency happens, you can simply pay cash and save less that month strong support network andor backup mechanisms e.g. if your car breaks down, theres a bus to work you can take so that you dont lose your job. You have a pantry stocked with staples like rice and beans.In this sense, its not that you have nothing planned for an emergency, its just that financially stable people have set up multiple redundant streams of money that they could use in case of an emergency.In contrast, compare the above bullets to someone who should definitely build up an E-fund: no home or no home equity. If you cant pay rent or your mortgage, you face an eviction or foreclosure. no access to low-interest credit. If you cant buy groceries or other essential next week, youll have to seek a payday loan that will lock you into a high interest debt cycle or something like a car title loan that youll have trouble escaping from. high risk factors, like you could use your job easily, you have chronic health problems that land you in the hospital, etc. No backup mechanisms. If your car breaks down, you have no way to get to work so you buy a car with a high interest rate just so you dont lose your job. If youre out of food, you dont have friends or family to ask for a small loan for a few days to tide you over. If you need quick cash, you resort to pawning things and paying more money to get them back later. 