Political science as a preparation for law school

[Mr_Payne]

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And I’m excluding 401k as savings because you can’t tap into it in an emergency.

Incorrect. You just pay a penalty (in addition to the taxes). And 401K is certainly considered savings. It’s just not as liquid as other forms of savings.</p>

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Nor can you use it before you’re 65 without incurring significant penalties, that will probably wipe out any tax savings and returns you made on that money.

Incorrect. You can withdraw at age 59. And no, a 10% penalty is just that, a 10% penalty. It’s not small, it’s not very large either.</p>

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I’m talking cash savings that are sitting in, say, a high-yield savings account.

Well, that’s not what most people are talking about when they mention “savings”.</p>

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Ideally, you want to have at least 8 months’ savings in an “emergency” fund. But if you got credit card debt, pay that off first.

What is your point? That people can’t save 20K in a year while making 55K?</p>