re: Paying Down Debt Vs Saving

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Sounds low to me. I like to keep at least 4 months worth of bills in reserve.

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That's Ramsey's "Baby Step 3"

Step 1 is $1000 emergency fund

Step 2 is pay off all debt, except your mortgage

Step 3 is 3 to 6 months of expenses

Step 4 is 15% of gross pay for retirement

Step 5 is save for children's education

Step 6 is pay off the mortgage early

Step 7 is invest and give