My cash reserves are around $11k, including an emergency fund of about a month and a half, and I budget rigorously. The only debt I have is $7k at zero interest, paid at $300/month, and it's from a family member who would almost certainly defer payments if something catastrophic happened. (BTW, our family has successfully made and paid tens of thousand of dollars of inter-member debt for many years, and the bankers and lenders vary over time.)
I happen to be in a free Dave Ramsey class, and a question came up. Should I pay off the zero interest debt before finishing my emergency fund? If so, why? My inclination is to finish accumulating my emergency fund first. The only substantive argument I can see to pay early is an emotional one: it's appealing and secure to have zero debt. Paying it off early will actually cost me money, because inflation is decreasing the value of the debt over time. My job is extremely stable, and also it's a rotating 12 month contract where I doubt they ever break the contract.
P.S. I should be honest and admit I'm currently throwing away some 401k match; my employer matches an incredible 9% 1-for-1 but I can only afford 8% while I'm getting on my feet. I've calculated that 8.5% is sufficient for my retirement.