The first baby step is to put $1000 in the bank. For a lot of people, this may already be completed. If this is the case, then you can proceed to baby step 2! If not, then your very first goal before you begin to get out of debt is to put $1000 in the bank. You should stop any investing that you are currently doing (401k, IRA, etc) and immediately put $1000 into the bank. This step should also be done as quick as possible as it is an essential step in establishing security and a feeling of success.
This money will be used as a beginner emergency fund and should not be spent unless a rainy day comes (car breaks down, heater dies, or some other bad event). You shouldn't ever use this money unless you have too. If you ever do have to use this money (say in baby step 2 which will be provided in the next blog), then you should immediately refill your emergency fund!
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