My DR Journey Blog....
My DR Journey Blog....

Baby Step 1:  Establish a $1000 Emergency Fund (EF)

The first thing you want to do is get a $1,000 emergency fund (EF) as soon as possible.  Because sh*t happens, this will be there to keep Murphy at bay while you work on your Debt Snowball (BS2).  Do what you can to get to the $1,000 as fast as you can so you can start on your debt.


People recommend getting second jobs or side hustles to get through the first two Baby Steps.  If you can, go for it.  Others have sold stuff laying around the house at a yard/garage sale.  This is good too, because we all have stuff laying around that has accumulated over the years and is taking up space.  Why not get rid of it?  This will help you get your BS1 EF off to a good start.


Here are some of the things you can do to get to the $1,000 EF:


1) Yard/Garage Sale

2) Second Job

3) Side Hustle - Babysit, Dog Walk, Cut Hair, Yard Work, etc.

4) Cash in Stored up Change

5) Online Surveys


The sooner you get your EF set up, the sooner you can work on your debt.  In this Baby Step, you should only be making minimum payments on your debts, but also keep your basic minimums up to date (Mortgage/Rent, Food, Heat/AC, etc).