Top o’ the Mornin’ to Ya!
Imagine having $1,000 set aside in a savings account, earmarked just for emergencies. That’s Baby Step One on the path to financial peace – establishing a starter emergency fund. It may not solve every problem, but it provides peace of mind and begins the process of retraining your brain to have a healthier relationship with money.
I remember my own journey into debt, which started at age 21 or 22 when I had to put $600-800 on a credit card to fix my car. It took me another 15 years and over $50,000 in debt to figure things out. The biggest challenge wasn’t the math, but rather changing my behavior.
To save up that initial $1,000, some folks can do it right away, while others need to cut back on expenses like eating out, buying movies, or canceling cable. It’s about doing whatever it takes, even if it means simplifying date nights. The key is to set that money aside and not touch it except for true emergencies, like a $500 car repair or a $300 plumbing issue.
Sadly, around 46% of Americans don’t have a $1,000 emergency fund. It’s time to put yourself in the other 54% by taking this crucial first step. If you need help or accountability, reach out to your spouse, a friend, or even me.
Change your behavior, and you’ll change your financial future. Baby Step One is simple but profound. You can do this!
Here’s a quick overview of the seven baby steps:
1. Save $1,000 for a starter emergency fund
2. Pay off all debt (except the house) using the debt snowball method
3. Save 3-6 months of expenses in a full emergency fund
4. Invest 15% of household income into retirement
5. Fund kids’ college education
6. Pay off the home mortgage
7. Build wealth and give generously
You be blessed!
Financial Peace – Baby Step 1: $1,000 Starter Emergency Fund
