What If Your Emergency Is More Than Your Emergency Fund?
Early on, Dave discovered people needed cash on hand for emergencies. And they needed it before they started paying off their debts. Otherwise, they’d lean on credit to get through. That’s where the idea for Baby Step 1 came from—$1,000 in a starter emergency fund.
And it works like a dream if your emergency is less than $1,000.
But what if it’s more? What if your car breaks down, your kid needs his appendix out, or your air conditioner goes berserk? Those can be pretty expensive. And it’s tempting to let Visa or MasterCard bail you out.
But that only adds more stress and more interest to your overall debt! Not good. So what do you do? Here are five practical steps to get you through an emergency bigger than your emergency fund: Read More