Good discussion. I agree with some of the other responses that your emergency fund will depend on your spending and your level of security required. For instance, I own a portfolio of real estate properties. I have an emergency fund for unexpected expenses such as water heaters going out or roofs that need to be replaced due to hail damage. I had to replace 4 roofs this year, and even with insurance it was WAY more than $1000. So I need a much larger emergency fund. Also, I believe that everyone should strive for an emergency fund that will help them survive being laid off for 6+ months. $1000 is a good start if you have nothing, but in order to invest you will need more. If you have to pull your money out of the stock market every time something happens, you'll never build wealth anyways.