The reserve fund saves lives

We haven’t spoken much about the need for a reserve fund while paying off your debt. To keep it simple a reserve fund very well may save your life!

When you’re in the middle of paying off all your debt (and because you’re doing it so quickly) a reserve fund allows you to keep the momentum.

Here’s my recommendation. When you’re doing the $15 dollar a day strategy, for example, keep two days and use the other five days for debt payoff. You typically only need several hundred dollars. It’ll take you less than 10 weeks and if you’re prone to emergencies you might want to save for 20 weeks.

The important thing to do is save while you payoff debt. It doesn’t matter which strategy you use to pay off your debt (see my Kit, Debt Free Living) it is critical for you to establish a reserve fund.

A reserve fund will do a lot for you including a “peace of mind” feeling while you’re paying down debt.

Remember the most important thing is to continue paying down debt. Don’t stop for anything. Once you have momentum you’ve got it made. Reestablishing momentum is difficult to do.

Start your reserve fund today, it’ll save your life.

David…