3 Reasons to Use a Roth IRA for Your Emergency Fund

If you're struggling to both set up an emergency fund and save for retirement, you may be experiencing some money frustrations. You probably know that both tasks are important, and that you should get started on them as soon as you're able to, but when your resources are limited, you may feel as if you have to pick one or the other.

If you only have room in your budget to save for an emergency fund and can't contribute to your retirement savings right now, you should consider putting those funds in a Roth IRA account.

Before I explain why this can be a good strategy, let me clarify: If you have enough income that you can properly save for an emergency and fully fund your retirement accounts, then this advice isn't for you.

Source Fool.com