Hi! I received a question after a seminar asking should I pay off some debt by using my emergency fund. I thought it was a great question to share on my blog. In my opinion, I feel you should only use emergency funds just for emergencies. It's better to pay off debt quickly especially high interest items by
1) Reviewing your expenses and evaluating if there are areas you can cut cost in..then apply that savings each month to your debt
2) As you pay off debt use that money that has been freed up towards other debt. Continue that process until all debt is paid off
3) Sell items you no longer need for additional cash
4) Find a way to earn additional income by getting a job or starting a business until debt is paid off
Overall I feel if you start using your emergency funds for debt then you will never
be able to save for real emergencies. Check out my post here if you need information on what emergency fund is and my other post on how to build your buckets here.
As always thank you so much for your support!!!
Pants: Ann Taylor (similar ones)
Blouse similar one I ordered for fall season here
Shoes: Sam & libby from last summer
Clutch: old similar here