Should I Do a Three Month or Six Month Emergency Fund?

How do you decide whether to build up an emergency fund or a Roth 401k? Here are a few rules of thumbs to help you make the right decision. First, look at where you are vocationally and then pay attention to who's counting on this money because that's also going to play into that decision as well. If you're trying to get through the emergency reserves so you can get more tax-free growth on your retirement assets, it may be better to save for later in life.