Why an Emergency Fund Should Be a Top Financial Priority

If you're like most Americans, you have lots of demands on your money. You may have student loans to pay, a down payment to save for, and high interest debt you're trying to pay off.  Prioritizing all of your different financial goals can be difficult, but one of the very first goals to achieve is saving at least some money for an emergency fund. 

Around 60% of Americans have less than $500 available for an emergency, despite the fact emergencies happen all the time. Nearly as many Americans -- 45% -- had incurred a major unexpected expense over the prior year, according to a Bankrate survey.  

While your ultimate goal should be to have at least three to six months of living expenses in an emergency fund, you don't have to start with an aspiration that's this hard to achieve if you're in debt or have other money troubles. You should, however, make it a point to save at least $1,000 as one of your first financial accomplishments -- even prioritizing emergency savings over aggressive debt repayment. 

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Source: Fool.com