I’ve done a couple of posts here and here about getting out of debt, and hopefully staying out of debt. One of the ways we can stay out of debt is to be prepared for unexpected circumstances.
Now that I’ve gotten my $1,000 emergency fund built up and I’ve been working on getting those bills paid off it’s time to build up that emergency fund so I can handle anything that comes my way.
Ideally this will cover between 3 and 6 months worth of expenses. I should definitely be setting up a separate savings account for this to keep it from tempting me to spend it on something I might want.
You can read more about this approach with Dave Ramsey’s book here.
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