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Practical steps for your emergency fund

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I don’t want you to have to use your credit card for emergencies that could disrupt your debt repayment strategy, such as car insurance excess or emergency dental work. If you use money in your emergency account for an emergency once your debt repayments have started (next step), press pause on paying down your debt (except for the minimum repayments) and work to top it back up to $2000. The cool thing here is getting an emergency fund in a separate account may be the first time ever that you have had some decent money saved.


You can find out more about the emergency fund, what counts as an emergency and all the other logistical questions about emergency funds in chapter 3.

Sort Your Money Out

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