Dave Says: Harley Davidson Before Emergency Fund?

Dear Dave,
My wife and I have been scrimping and saving for three or four years now, and we have part of our emergency fund in place and are just a year away from becoming debt-free, except for our house. The problem is that we really want a Harley-Davidson. Is it okay to go ahead and buy one, or should we wait until we get everything paid off?
-- Chris

Dear Chris,
You should live like no one else, so later you can live like no one else.

I would never recommend you buy toys while still in debt. Once you have everything paid for except the house, move on to Baby Step Three, which is a fully-funded emergency fund – three to six months of expenses. Only then do you save up for toys.

Don’t get me wrong. I’m not against toys or having fun. But it would be highly irresponsible if you were to get laid off from work and have debt, no savings and a Harley!
Dave