Category Archives: Emergency Funds

Break Glass In Case Of Fire: Keeping Two Emergency Funds

Most personal finance advisers suggest that we should have an emergency fund for those tough times. Dave Ramsey even includes this recommendation in his Baby Steps system for getting out of debt and becoming financially free.

One of the first things he tells you to do is to build a $1,000 emergency fund which you can keep in an interest-bearing account, perhaps in something like a SmartyPig savings account. You can use this baby emergency fund to hedge yourself from possible mishaps. Only after you complete this step does he suggest that you start to chip away at your long-standing debt. » Read more

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