Heading For An Emergency
Nikki's husband is facing a very serious liver disease and they need to know if they should save money or pay debt.
QUESTION: Nikki’s husband has hepatitis C, and his only option is a liver transplant within 2 years. They make $70,000 a year and have $25,000 in debt. She doesn’t know where to start to prepare for this. It starts with a lot of savings, says Dave.
ANSWER: It’s tough. You’re going to face loss of income and some bills, and that’s if things go like they are supposed to. Save some money for an emergency fund. Also, the less debt you have, the better. Have no life for 2 years while you save a huge emergency fund first, about $30,000, and then pay debt off as soon as you can.