1

Another approach

Submitted by Jamin on October 13, 2007 - 08:11.

If you can't afford to save 3-6 months worth of expenses while you're paying off debt, I'd recommend using a smaller emergency fund of $1,000 - $2,000 and use it for those un-budgeted expenses like car repairs. That saves you from using your credit card for those types of expenses. I wrote about this approach in How to Manage Your Finances with a Spreadsheet.

Great article. Preparing for situations like losing a job is something we should all do.

Reply

Please keep the comments civil and on-topic. Abusive or inappropriate comments will be removed without warning. By posting here you agree to our terms of use.

The content of this field is kept private and will not be shown publicly.
If you leave a link (include the http:// part), your name will be linked to your homepage.

You may use some HTML for formatting: <strong>bold text</strong>, <em>italics</em>, and <a href="">for links</a>. Empty lines are automatically converted to paragraph breaks.

Or click the link above that says 'enable rich-text' to use the fancy editor.

Captcha
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
16 + 1 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.

Have more to say? Join the discussions at Wise Bread's Finance and Frugality Forums.

Finance Blogs - Blog Top Sites