[ryandrake]

I'd expand upon the emergency fund. I always feel when someone just says "put X in an emergency fund" and leaves it at that, they're missing the big picture of emergency planning. Emergencies can be long, slow burns, they can be short and acute, they can involve lack of access to financial institutions. I like to keep different tranches of emergency assets set aside for different kinds emergencies:

1. Something like Series I bonds for long-term future economic downturns or inflation

2. A CD ladder or money market for temporary job loss

3. Cash in a mattress and food/water for natural disasters

4. Guns, ammo, and containers of gasoline for the zombie apocalypse.

Weight each tranche by your assessment of each event's probability. You diversify the rest of your portfolio, why not diversify your emergency fund?