Credit Cards are not an Emergency Fund:

Credit Cards are NOT an emergency fund. 🔊🔊🔊🔊

📣📣📣 I would shout this from the rooftops if I could.

When you have an emergency, the last this you want to do is go into debt to cover it. That makes an already stressful situation even more stressful.

Here is what we did.

Initially, we saved up $1,000 (these days, I'd probably do $1500)

This was enough to tackle life's unexpected events for the time being. And anytime we had to use some, we replaced it FAST.

Next, we finished paying off our debt (as fast as we could) THEN we beefed up our savings to 3 months of basic expenses. This should be done as fast as possible too. Truth be told, we lollygagged on this a little. In hindsight, I wish we had moved faster. 0g

Now I know what you're thinking, $1,000? That ain't sh*t!!

But that's not true. According to a 2022 CNBC report, most Americans cannot cover a $1000 emergency in cash. So if you have $1,000, you are already crushing the norms.

Plus, this is only temporary. Within a year or 2, you should be able to start working on a fully funded emergency fund which, in my mind, is

3-6 months of expenses OR your out-of-pocket max from medical insurance (whichever is more)

Oh, and don't forget- things like new tires, oil changes, teeth cleaning/cavities, etc...Real talk, we know those are just a matter of time, not surprise emergencies, so make sinking funds for those sorts of expenses if you know you aren't able to cash flow it.

*IF you move with speed and focus, this method works like a charm.

If you want to move slowly 🐌 and don't mind going into debt 💰 for emergencies, then I'm probably not the coach for you. But I still love ya!!! 💜😅

I'm just not going into debt, especially with interest for emergencies. 🙏🏽

@jadewarshaw