Money Tip #2

If you're in debt, the first thing you need is a plan.  My preference is Dave Ramsey for two reasons:


1) It makes sense.  It's common sense.
2) It changes behaviors, which keeps the debt away forever.


Dave sets out 7 baby steps.


The first step is to save $1000 in an emergency fund.  This covers, well, emergencies!  It's so you can pay off your old debt without creating new debt in the process.


Life saver.  That's what I call it.


Unexpected doctor bill?  No problem.


Car breaks down?  No problem.


There are a lot of ways to scrape together the emergency fund, even if it feels like an impossible task.


1) Yard Sale!  Sell everything but the kids and the yard.
2) Got a vehicle with payments?  Consider the costs of selling it vs. keeping it.  Dave has a lot of info on that.
3) Work it!  Get a side job.  Throw every penny you make there straight at the emergency fund (and later at the debt snowball... but that's for baby step 2).


Good luck!