This Needs to Be the Top Financial Goal for Young Adults
A comprehensive guide to building financial stability
Before you remodel your kitchen, you must ensure your house is on a sound foundation.
The same is true with your finances; you need to do the tedious work of building a strong foundation before moving on to financial goals you’re likely more excited about, like paying down debt or investing.
In this edition of Dollars & Decades, I will provide a comprehensive overview of the importance of building an emergency fund and how to do it as quickly as possible—even if money is tight.
Your emergency fund is the foundation you build your financial house upon
First, let’s discuss why an emergency fund should be prioritized over debt repayment and investing.
Paying off debt—especially toxic consumer debt like credit cards—will probably feel more urgent to young adults than having a bit of cash set aside in an emergency fund.
But remember, the goal is not just to pay off your debt as quickly as possible—It’s to pay off your debt and ensure you never fall back into debt again.