Deciding to build an emergency fund is one of the most important financial moves you can make. Life is unpredictable. Emergencies happen without warning, and they can be anything from replacing a couple of flat tires to something more serious, like expensive medical bills or sudden home repairs. When you are focused on paying off debt, it can be tempting to throw every single extra dollar at your balances. That approach feels productive, but it can leave you exposed. If you have no cash reserves, the next unexpected expense is likely to go right back on a credit card, erasing your hard work. There are ways to attack your debt and build a safety net at the same time. Step 1: Start Small and Define Your First Goal for Financial Protection Don’t let the idea of a huge savings account overwhelm you. The long-term goal for most people is three to six months of living expenses, but you don’t start there. Your first mission is to build a starter emergency fund. Aim for a manageable amount. This fund has a specific job: to stop small emergencies from becoming new debt. A surprise $700 car repair can be a major setback […]
