![]() You started brewing your own coffee at home-and even like it better. You downloaded so many money-saving apps, you have to delete photos of your pup weekly for storage. How: You’re already in a pattern of saving. Two-income households can go for three.) Save up that amount, and store it in a high-interest savings or money market account with check-writing privileges so you can get to it if you need to. (If you’re a one-income household, aim for six months of expenses. Figure out how much money you’d need to live for three to six months if your regular income went away. Now, you’re going to beef up that emergency savings fund so it’s strong enough to stand up against bigger problems, like job loss. ![]() It’s not forever, and when you’re living free from debt, you’ll look back and see the effort was totally worth it.īaby Step 3: Save 3–6 Months of Expenses in a Fully Funded Emergency Fund In fact, turn up the heat and see how thrifty you can get while you’re on this step. How: Remember those money-saving tricks from Baby Step 1? Use them and put all that extra cash toward defeating debt. Pay off one debt at a time from smallest to largest, gaining momentum until you’re debt-free. Now it’s time to attack debt with a vengeance using the debt snowball method. You’ve got $1,000 saved up so you can use that money instead of going deeper into debt when an emergency hits. You want to thrive-and the thriving starts here. Pick a few and get down to saving up.īaby Step 2: Pay Off All Debt (Except the House) Using the Debt Snowballĭebt’s good for one thing and one thing only: holding you back. The ways to earn or save $1,000 are nearly endless. Try selling stuff, clipping coupons, saying no to extra expenses, planning your meals, eating out less, using or selling old gift cards, and downloading money-saving apps. It just takes a little focus and some hard work. You can save $1,000 quicker than you think-really. How: Start saving more money and spending less. Your washing machine won’t live to spin again. Your kid busts his chin and needs stiches from the ER. 1That means 64% of them are borrowing, selling or going into debt when life happens. Only 36% of Americans say they can pay cash for a $400 emergency. How do you climb a mountain? How do you reach the top of those Everest dreams? One (baby) step at a time.īaby Step 1: Save $1,000 for Your Starter Emergency Fund If you want to do better, be better, and live better with money, you’re probably looking at what seems to be a mountain of work to get you there. They’ve proven themselves time and again as steps that work. The 7 Baby Steps are the proven plan to paying off debt, saving money, and building wealth. So, grab an extra pair of socks, friends, because we’re about to knock. We can show you how to get ahead with your money in just 7 Baby Steps. Lucky for you, that’s not the direction of this article.
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