Emergency Fund
I've been contemplating on rather I should save only a $1,000.00 as a small way to begin an emergency fund. By doing that I could foucus then on paying down debt.
On the other hand by taking Suze Orman's advice by saving 8 months for an emergency fund, I could pay down down debt without having to worry about hitting a snag. And trust me I always hit snags. I guess once I get more of a grab on my finances, I'll be able to get a better picture.
March 15th, 2009 at 10:53 pm 1237157603
If your job is pretty secure and you rent, then I would just save the $1000.
If your job is secure and you own, then I'd save at least $2000.
Then I would do an 80/20 on debt repayment. Meaning, 80% of anything you have over immensely needed expenses, would go towards debt. The other 20% would go towards continuing to build up your EF.
If your not sure about your job/income, then I would save up at least 6 weeks income, and then go 40/60. 40% going towards paying down debt, and 60% to building up your EF.
March 15th, 2009 at 11:09 pm 1237158582
March 15th, 2009 at 11:13 pm 1237158837
March 15th, 2009 at 11:18 pm 1237159137
April 22nd, 2009 at 01:26 am 1240363576