You may be feeling impatient to start more aggressively paying down debt, but it’s important to first create an emergency fund. You might be tempted to use the money that’s already earmarked for your debt payments to fund this expense if you don’t have money socked away for unexpected expenses.
Experts recommend keeping three months’ worth of living expenses in an emergency fund, but you can start with a modest $1,000. Set up an automatic transfer with your DoverPhila Federal Credit Union accounts until you have a fully padded emergency fund. This may take several months, but no worries, you can continue following the next few steps towards a debt-free life as your emergency fund grows.
DoverPhila offers a variety of online tools to keep your finances on track especially when life gets busy. Click here for more details on creating an emergency fund.
Feeling overwhelmed? No worries; we’ve got you covered! Sit down with our free, on-staff financial counselor. They can help you get started with creating an emergency fund. Call today at 330-364-8874 and ask for Katy Steinebrey.
Available Articles in the Financial Freedom Series:
Step 1: Take Stock of Your Debt
Step 2: Don’t Dig Yourself Deeper
Step 3: Negotiate a Lower APR
Step 4: Create an Emergency Fund
Step 5: Create a Budget
Step 6: Trim Expenses
Step 7: Create A Debt Snowball
Step 8: Boost Your Income
Step 9: Put All Windfalls in Your Snowball
Step 10: Make It Automatic
Step 11: Track Your Progress
Step 12: Celebrate!