Rainy day fund.

[carol b]

We all need to put away some money for those days that just happen. Unexpected things like medical emergencies or a broken down car.
Here a few ways to make it happen.
Stop using your credit card. Make you minimum monthly payments. This way you build up you credit and have something to fall back on if something pops up.
Try to set aside one months worth of expenses. You should make this a priority over even your 401k contribution. You can lower the amount that you contribute until you have reached your goal. Then raise it back up later. This way you have the cash you need on hand and are still planning for you retirement.
Stay away from the stock market. You need cash on hand and you should be earning interest. That means more cash when needed. You could do a money market fund although these are not FDIC insured. They do however pay a higher interest rate than a savings account.

[dollardaze]

It's true that we do need to put some money away for those times when we have some financial difficulties, and need to just get through them.

I agree with most of what you have said in your post with the possible exception of only making minimum payments on your credit cards. Using your credit card sparingly, just twice a year, for small purchases keeps your FICO score in good standing. For larger purchases, it's almost impossible to pay that debt off by making minimum payments. It's better in my opinion, to at least double those payments if possible in order to eventually get that debt paid off.

[Empty Wallet]

With the way the banks are folding and selling out now, i wouldn't trust my money in a bank anymore, it might be gone!!

and for rainy days...i think its pouring out right now!