Why can't you just skip ahead and forget about the emergency fund and start saving for your retirement first?
Unless you’re already a member of the 65-plus crowd, using retirement funds to pay for expenses usually isn’t a good idea. First being below 65 you’ll have to pay out the taxes on any withdrawals you make from retirement accounts, and you may even get hit with early withdrawal penalties which can take a huge chunk of your hard earned cash right out of your pocket.
So if you decided to skip building that emergency fund - why not go back and take another look at it while you still have a chance to consider it.
Now that you have your emergency fund in place lets take and start by setting aside at least 3 to 5 percent of your income. If you’re self-employed or your company doesn’t offer retirement benefits, opt for an individual retirement account (IRA).
If your workplace contributes to your retirement (65 percent of employers offer some sort of matching benefit), put enough in your 401(k) to receive the full matching amount.
After you have built your emergency fund - saving the 3 to 5 percent of your weekly income you'll be accustomed to the slightly smaller paycheck. Actually you will have a little extra since you are now on the Retirement building phase.
Let's move on to step 3: Pay Off All Credit-Card Debts
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