5. Save up $1,000
You sold a bunch of stuff and made a decent chunk of change. Now it’s time to sock that away and touch it as little as possible.
This thousand bucks is your mini-emergency fund.
It’s not a full emergency fund for a couple of reasons:
- With all your payments and your limited income, it would probably take you YEARS to develop a $10,000+ emergency fund. By that point, you’d get tired of all the saving and you’d probably quit before you even started paying off your debt.
- $1,000 give you just enough buffer to get through even those larger emergencies (albeit creatively!), but it’s a small enough amount that you can get there fairly simply and soon start tackling your debts!
Save up a grand, put it in a savings account in the bank. That’s it!
After this, it will be time to tackle your debts, save up a huge emergency fund, and then invest for your future!
But, let’s take this one step at a time.
First, saving up the $1,000. Get this done and you can move onto the next step!
Want to learn more? Check out the helpful posts below!