Saving an emergency fund was the first things we did when we started paying back our debt.
The concept made a lot of sense to me: an emergency fund creates a cushion in your budget that helps you avoid accumulating more debt when unexpected situations arise. Sign me up!
But when I set out to start saving, I quickly realized there are very different opinions about the right amount to have in your account while you’re paying off debt.
For many, $1K is the standard and I can understand why. Keeping your emergency fund small means more money is available to pay off debt. More money to debt means you pay off the debt faster. It makes sense.
But, as the title suggestions, I don’t think $1K is enough for an emergency fund.Continue Reading