-You’re never too old: you can always get start building an emergency fund regardless of your age. The purpose is to make sure you have backup money in case something bad or unexpected happens. This can happen at anytime regardless of age.

-You’re not too young: Bad things also happen to young people. You can get sick or lose your job. An emergency fund makes these situations easier to handle.

-“I need to pay off debts first”: Not having an emergency fund can lead to more debt. Put away a few dollars each time you get paid.

-“I don’t get paid enough”: Even though you are living pay check to paycheck, making changes to your budget and devote some money to an emergency fund. The less you make, the more you probably need an emergency fund.

-“I can’t save”: Although an emergency fund may accumulate slowly, it’s better to have little saved than nothing. Even though you can’t save that much in your emergency fund, you should start somewhere.

-“I already have a 401k” – Yes, it’s probably better to dip into retirement savings than incur more debt, a 401k is not a sufficient emergency fund. 401k’s are complicated because of taxes and fees. If you dip into your 401k, your employer may take out money from your paycheck until the loan is fully repaid, which means you’re earning less every pay period which can lead to more financial distress. The penalties of dipping into a 401k can be steep.