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A savings fund is your best defense against forces that seek to derail your debt free momentum. Yes! Forces intent on keeping you mired in money mishaps, floundering in financial fiascos, or let’s face it – deep in debt are real. Alliterative exercises aside, a savings fund is a must have. It’s just not always an easy must do.
Before tackling a debt repayment plan, set up a Mad Money Fund. This fund should contain at least $1000 (depending on your comfort level). Some balk at the low figure, but consider your recent emergencies. Would $1000 have been sufficient? Don’t dread using the cushion in a genuine emergency. The Mad Money Fund exists so you avoid the madness when emergencies happen.
Trying to pay off debt without a savings stash is like filling a leaky bucket. Eventually, frustration may cause you to give up completely. The Mad Money Fund will help you avoid using credit so emergencies don’t derail your debt repayment plans.
Do you have other simple savings strategies to share?
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