Save for a emergency fund or invest?

[Michael Jackman]

I know this depends completely on ones risk tolerance, but I'm curious what you would do, or have done, and how it worked out for you.

Currently I'm working on the former vs. the latter, but it is driving me crazy! To keep me sane and help time to go by, I study, analyse and read/listen from you guys. 

Patience!

[Angelica M Garzon]

Hey Michael, 

Personally, I invested prior to saving my emergency fund. I bough a duplex that cash flowed $600 the first year and then I did a cash out refi and got back around 5k. 

I don't recommend this approach because it really hindered my other investment opportunities for that entire year since I did not have any other money saved up, I had to put at least 7k into the property in rehab and I had a tenant leave after the year. 

An emergency fund will serve as your cushion, and your investment funds should be enough to cover all of these "unexpected" investments. 

This is just my opinion from my own experience. Everyone is different and like you said depends on your risk tolerance. 

I hope this helps and good luck!