When there are investments everwhere you look, which one should you choose?
When having a budget frightens and frustrates you and your bills and debt are stacked a mile high, where do you begin?
The answer, to all of these questions, my friend, is the emergency fund. That's right, before you pay your debtors, before you go for those big fancy home runs that people love to brag about with their investments, you start with the basics. Before you compound, you impound.
How do you get ahead in life? Its the small details. Its always those who focus on doing the small things, so that their activity is compounded over a long period of time, that make the big difference.
The problem with putting all your eggs in one basket, is they just might crack. The problem with putting the emergency fund off for tomorrow because your bills are so great today, is that it just may never happen. Start today. Put aside a little bit each month, until you have built yourself between 3 to 6 months of income.
Its sad, but no one really ever talks about freedom anymore, a principle our country was founded on. And guess what, your level of financial independence is exactly the number of months you could survive without an income. How do you do it? You take the first step.
As readers, we'd love to hear your stories about how you overcame your fears and started to take those baby steps.
This post was reposted from http://finlit.biz/debt/the-emergency-fund-your-first-step-through-chaos/, originally written on October 9th, 2013.
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