Welcome to Lesson 1 Part B! You now have your reasons why you want to be free from those crippling debt hand-cuffs. Paying off debt can feel really good, it can even be fun at times. Imagine paying off a $4,000.00 credit card and being done with it forever! What relief!
We need to be smart and to be prepared to be successful... what if something happens... you blow a tire and need a new one at $250.... Credit Card to the rescue, right? NO.
You are going to build yourself a little Emergency Fund. This is NOT a long-term fund that will solve all of life's problems, this is simply a temporary cushion that will be there when you need it during this battle to regain your life.
Develop a safe place to keep this fund, it needs to be separate from your standard checking account and NOT easily accessible... yet easy to access. Through our bank we were able to create a new 'savings' fund to put this money so if needed we could instantly transfer it to checking. Not being included in our regular balance we couldn't 'accidentally' spend it on groceries or bills.
At this point you are going to begin looking at changes you can make to create money to put toward your Step 1 Emergency Fund. I have a million ideas I will share with you in a separate post next.
For now, find a safe place to store your Emergency Fund and maybe find some extra money to put in there!
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