FirstStepsInvesting

Decoder · Debt and cash

Emergency fund

Cash kept for life's ambushes — the car repair, the lost shift, the broken furnace — so those costs never land on a credit card. Published guidance: build a $1,000 starter cushion first, then grow it to 3–6 months of essential spending (more if your income swings). It lives in boring, safe, reachable savings. Boring is the point.

For your first $100: Your emergency fund is not an investment and should not try to be one. Your first $100 of safety money earns its keep the first time the car breaks.

Interest, in plain wordsAPR (annual percentage rate), in plain wordsHigh-interest debt, in plain words

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