If you’re trying to pay off debt but keep wondering, “Should I also be saving?” The answer is: YES. But don’t panic! You don’t need thousands set aside before attacking your credit card or student loans.

Let’s break down how to build an emergency fund while you’re still in debt, without derailing your momentum.

WHY YOU NEED AN EMERGENCY FUND (Even in Debt)?

Emergencies happen: sick kids, surprise bills, car breakdowns. Without a buffer, you’re forced to swipe the credit card again… and the cycle continues. Even a tiny emergency fund of $500 to $1,000 can:

• Keep your debt from growing;
• Give you peace of mind;
• Buy you time when life gets chaotic

HOW TO BALANCE SAVING AND DEBT PAYOFF?

You don’t have to choose one over the other. Here’s a 3-step method I use as a mom paying off over $88,000 of debt:

Step 1: Start With a Mini Emergency Fund

Set a realistic goal, like $1,000 or one month’s worth of expenses. Need motivation to stay on track? This FREE Emergency Fund Savings Challenge will get you covered.

How to save fast?

– Sell unused items (baby gear, clothes, tech)

– Pause subscription services for 30 days

– Side hustles are your go to (printables, freelancing, etc.)

– Use cashback apps or coupon savings

Tip: Treat it like a bill and automate $10-20/week if you can.

Step 2: Choose Your Payoff Plan

Once your mini fund is in place, tackle debt with a system:

– Snowball: Start with the smallest balance

– Avalanche: Start with the highest interest rate

Step 3: Use the 80/20 Rule

Once you’re saving again:

– Put 80% of extra money toward debt

– Put 20% toward savings

REAL LIFE EXAMPLE

I started with $10 in a tin box. Literally! Then I made $4 from a digital product on TikTok. Then another $8. Now I have a mini emergency stash.

TOOLS I USE:

– Budget Dashboard

– Debt Tracker (Snowball + Avalanche built-in)

– Payoff calculator for monthly simulations

All of them are available in the Ultimate Budget Toolkit

FINAL THOUGHTS

You don’t need to be rich to build a cushion. Start with what you have. Save a little. Pay off a little more. The point is: keep moving.

You got this!