The first step toward financial security is to save $1000.  This acts as a emergency fund.  Step three will be to get a full emergency fund of three to six months of living expenses.  But, until then, you’ll need this small buffer between you and life happening.

This step should be done QUICK!  This should not be a long-term goal.  Try to knock this out in a month or two.  Get intense!  Sell some stuff.  Have a garage sale.  Pick up extra shifts at work.  Pick up an extra job or two.

Meanwhile, do not pay extra on debt or contribute to retirement at this point.  You want as much ammunition as possible to get this $1000 saved.

Don’t worry about where you store it.  Just make sure you have easy access to it.  Whether it’s in a savings account or an envelope in your home, have it available in case you need cash if an emergency arises.

Next we’ll talk about step two – paying off all debt except your mortgage.  Get ready!