Smart Finance: Emergency Funds While Paying Off Debt
Why building an emergency fund is still important—even during debt repayment.
Why You Still Need an Emergency Fund
Unexpected expenses can derail your debt plan. A small emergency fund protects your progress by reducing the need for new debt.
How Much Should You Save?
Start with $500 to $1,000 as a starter emergency fund, then grow it as your financial situation improves.
Where to Keep It
Use a separate high-yield savings account that’s easy to access but not too tempting to spend.
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