How To Prioritize Emergency Funds, Savings and Paying Off Debt

[Grand Dude]

KristineS5 is correct. She is describing the Seven Baby Steps and this approach works. Not the Modified Baby Steps, not the Baby Steps with your own twist. Just like Dave Ramsey created them. It works. I went from negative net worth to millionaire in 9 years starting at the age of 52 using this method. Follow this path and you will prosper. 👍

[Grand Dude]

Sounds like you have had a tough time. I am sorry. How old are you guys?

[Petchioski]

I dont have an emergency fund. How do I budget one in with all my monthly expenses 

[Petchioski]

Great I'll follow your advice

[Petchioski]

You could try a loan also cut any unneeded expenses or spending then take that money and set it aside with the loan pay off your debt you owe keep the left over and pay your first payment and enjoy the rest

[ELLSKIES]

Fabulous article, because it offers realistic advice. So many articles on this topic make you feel bad about yourself and offer suggestions that are highly impractical. This    piece reads like real-world advice from a non-judge mental friend. Thank you! 

[Romeyrome]

This is all great info. I do something similar but my savings for retirement and my emergency fun are one. I have 2000$ a month in bills, so when I get paid weekly, I apply whatever is needed that week to get my bill money back to 2000 and I put the rest in savings. Works really well for me. As for paying down cards I wish I could consolidate to lower interest but I am sort of stuck with them for the time being. So I pay off cards in the order of the lowest balance. Making double payments to those and paying the minimum + 15 to the rest. I have a little ways to go but baby steps are getting me there.

[Milej66]

The reason so many people live paycheck to paycheck is because we typically adjust our spending to our income.  Make a little more - eat out a little more, get the better cable tv plan, a little nicer phone, a little nicer apartment, a little nicer car, whatever. Income is just like a house...no matter how big it is, we expand to fill it. Just a thought as I read some of the replies. 

[ELLSKIES]

So true! 

[Normachavira]

Well I am 62.00 still working have Five more year for retirement still top shape what should I do I feel sorry might last be up to 90 I started save 4 month ago. Do help my children with large mount what advice do plan I should prioritize 

[Anonymous]

 I'm currently using Freedom Debt Relief for my credit cards. 

[mk617]

If I can make more money in the market than I'm paying as an interest rate on a loan (i.e., mortgage or car), isn't that a better use of the money than keeping money out of the market to pay off the debts?

[Fasci]

yes I had to do the same many years ago.

MMI, (Money Management International).

They are the real thing, not scammers.  They charge a very small fee.  They will negotiate with debtors and you will never hear from them again and just pay your monthly bill to MMI and they distribute.

Good luck!  You can do it!

[Fasci]

Take care of yourself.  your kids are old enough to take care of themselves 

[KStevenson]

@Petchioski   In order to save $1000 emergency fund, you will need to look at your expenses and determine what money can be used to fund an emergency fund.

For instance - if you are eating out that money could be set aside in your emergency fund. Make ONLY minimum payments on your debt, funnel all other money into the emergency fund.

What can you sell to make extra money? Some of my clients sell plasma twice a week. Others change their cell phone plan to save money and fund this emergency fund. Pick up an extra part-time job to bring in extra money. Are you crafty or can you offer a service to earn add'l money? 

Those are just a few possibilities to fund this.  

Need help with your finances? Contact me at www.advocatefinancialcoaching.com.