Do you have a starter emergency fund?

If the answer to that question is no, consider the beginning of the New Year the perfect time to start this all-important fund. Why? Well – if your car broke down today, or your heater went out, would you have the cash to cover the expenses to fix or replace it or would you turn to a credit card to bridge that gap? Most Americans would turn to a credit card. And it’s often that choice that leads to an endless cycle of dependence on credit. Don’t let that cycle suck you in. You have choices – choose to rely on yourself, not creditors, to take care of your needs.  Make it your goal to set aside $1,000 as soon as you can in a savings or money market account that is separate from your every-day spending account. Just having that starter emergency fund will do wonders for your peace of mind. Once you have this money safely tucked away, consider how you’re going to approach the debt you currently have before you move on to fully-funding the emergency fund.