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Why a small start is best route to big goal.

Byline: ELAINE COLLIAR

There are a few questions that come up time and time again as I coach people through the process of grabbing control of their finances and heading on to a debt-free financial future.

This one is a classic, so I thought I would revisit it again just so that you understand why I give some advice in the beginning that is contrary to that given by some other organisations that help people get a handle on their money.

"Why do you suggest I save up for a small emergency fund as our first goal rather than throwing every extra penny at our debt right away?" Usually this question comes from a place of wanting to get started as soon as possible. I get that, but here are my two top reasons for asking you to pause and focus on saving first and reducing debt second.

The first thing is that I can guarantee that one of the first things that will happen when you decide to take control of your family finances is that life will throw you a curve ball. A car will break down, a washing machine will leak or an illness will curtail your income in some way.

Emergencies are going to happen. Don't let the next one find you with no money set aside to deal with it, as it could be the debt that drags you under and you will never get back to the goal of being debt-free.

Secondly, working as a team to save up your baby emergency fund achieves so much more than a bank account with a sum of money in it.

Conversations start about ways to save, about how the future will look,about how far you are prepared to live a frugal life in following your debt-free goal. In the couple of months it takes to create your emergency fund, you will all be so much clearer about where you are headed. Success usually follows such clarity.

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Title Annotation:Features
Publication:Sunday Mail (Glasgow, Scotland)
Date:Apr 10, 2016
Words:331
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