Should You Build Your Emergency Fund or Invest in the Stock Market?

Creating a financial plan involves a blend of evaluating your tolerance for risk, gauging your relevant time horizon, and developing personal goals. If we've learned anything over the past several months, it's that having cash available is not only preferred, but also an absolute necessity.

At the same time, we're all faced with the challenge of saving for retirement -- the longer you wait to begin investing, the more you'll need to save down the line to reach levels high enough to retire. With these competing priorities at hand, it's valuable to think about the different considerations for building an emergency fund versus beginning to invest. 

The global pandemic has cast a blindingly strong light on the need for cash. Put another way, you need to have at least some money at the ready in case of an emergency. The term "emergency" here refers to any potential risk within your financial life that can be unknown in timing and amount.

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Source Fool.com