Emergency Funds While Paying Off Debt

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.

A modest emergency fund is your safety net while you focus on becoming debt-free.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Share via
Copy link