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Do you know the Baby Steps to financial freedom? Baby Step #1 (Emergency fund)

According to Dave Ramsey, there are 7 "Baby Steps" that you can follow to get control of your finances.  Baby Step #1 is to save $1000 in an emergency fund.

Saving $1000 for a rainy day gives you a security blanket for unexpected car repairs, doctor bills, and other things that creep up on you.  If you are living on a tight budget, one of these surprises can wreck your month!  

Put aside whatever you can out of each paycheck into a separate savings or money market account.  Start with $5 or $10 if that's all you can manage.  Keep at it until you have $1000 socked away and then don't touch it...except for a real emergency!

By the way, in case you were thinking your child's birthday or Christmas are "emergencies," I have news for you...they come on the same day every year and aren't a surprise so they don't count as an emergency but are something you should be planning for!

Stay tuned...more Baby Steps to come.

Lynn MacDonald