I&#x27;d add to number 4 that being able to borrow short-term cash at a reasonable rate can be a better choice. If you borrow $10k at 1%&#x2F;month and pay it off at $1k&#x2F;month, the total interest is something like $550. If you need that much cash once every 5 years, then that&#x27;s about a 1% rate of return on holding $10k worth of emergency cash in terms of saved interest fees.<p>That said, this is only really a good option if you&#x27;ve got a healthy income level and strong saving habits. If you don&#x27;t, you won&#x27;t be able to borrow at a reasonable rate (and you won&#x27;t be able to pay it back quickly).