<prompt> Human: Just wondering if I actually need an emergency fund given my current situation. I already have one, but Im wondering if I could be putting that money to better use.Details:28, retail manager, making 40KbonusyrNo children, not married, rent with roommatesDebt: Student loan 45,000 5.2 interestAssets: 5,000 emergency fundI usually have a few-to-several hundred dollars in my chequing account which I dip into for big eventspurchases when needed. Nothing crazy but enough to keep life fun.Available Lines of Credit:Bank 1, 10K at 8.9 interestBank 2, 10K at 5.6 interestI was given pre-approved offers for both of these LoCs and opened them even though I havent used them. Apparently my credit rating is amazing although I dont know the exact score.Take home after taxesbonus: 2,400mo. averageBudget:1,000 Student debt repayment635 Rent including utilities, internet, laundry45 Cell phone115 Bus pass25 Retirement TFSA20 Monthly movie night200 Food100 Medical supplies in Canada, have OHIP and benefits through work60 Restaurants140 Misc. lightbulbs, haircuts, birthday gifts, etc.Fixed costs. The rest are limits I stick to pretty well.Obviously Im just barely breaking even most months, but Ill be finished paying off my student debt in a few years I also throw tax returns and any other income towards it and can start to save for retirementfamily stuff with that available cash after. I also will hopefully continue to get raisespromotions so the 40K salary wont be forever.My question is - given that I have available Lines of Credit totalling 20K, plus not a whole lot of things that could cause a financial emergency no kids, no house, no car...is it a good idea to use my LoCs as my emergency fund and put my 5K cash to better use? And if so, what is the best way to use that cash - pay off more student loan, or put it into an RRSP, TFSA, etc?Thanks!  <response>: LOC are not good emergency funds. The bank can take those away any time they want. 