As best as you might try to avoid it, sometimes things just go sideways and having an emergency fund in place helps take the edge off of the problem. Whether its an unexpected auto repair or a household appliance that goes tits-up on a Sunday evening. “Murphy’s Law” tries desperately to stay involved in our lives and an emergency fund helps keep him at arms length.
You need to save up $1,000 as an emergency fund. Get this done ASAP, put it aside, and don’t touch it unless it’s a true emergency. Put it someplace safe and out of reach; whether that’s in a separate account at the bank or stashed away at home. Keep it safely tucked away and out of harm’s reach (as well as your own reach).
And if you do have to use your emergency fund, work to replenish it before continuing on to the next step.
Now let’s take care of that ‘monkey on your back’…. Step 3: The Debt Snowball.