Now that you’ve got your bills paid off, you should fill up your emergency fund so that you have 3 – 6 months worth of expenses set aside. This is actually pretty easy to do if you have no debts! A fully funded emergency fund can be a life saver if something unexpected happens.
How much is enough? That’s a question you’re going to have to sit down and figure out, because everyone’s situation is different. $5000? $10000? Whatever amount that makes you feel comfortable. And since you’re debt free, your emergency fund will actually last longer than if you still had a pile of debts hanging over your head.
Now let’s start putting money away for your future – Money Matters – Step 5: Maximize Retirement Investing.