Save for a rainy day or pay off debt?
June 30, 2009 by Jennifer Chait
Filed under debt/credit
Saving for a rainy day, or building an emergency fund and paying off debt are both smart financial moves, but obviously it’s tough to do it all at once so what should you do first? Should you pay off the debt or sock away cash in an emergency fund?
Aim for creating a small emergency account and put a larger bulk of your cash into paying off your debt. Why?
Paying off debt builds confidence which better prepares you to handle your finances. It feels good to save as well, but it feels much less stressful to have less debt.
Paying off debt …read more
