The shackles of debt seem to be a bonding force for many millennials around the country, but it isn’t just Gen Y that is attempting to pay off lenders. Debt is a national problem spanning all generations. To many, it may feel nonsensical to save money while in debt, but it’s an important part of everyone’s financial health strategy.
You Still Need an Emergency Fund
Debt doesn’t preclude anyone from experiencing emergencies. Murphy’s law would suggest those already in the hole should expect more pain to pile on.
In fact, $1,000 surprises happen so regularly that Shannon McLay, a financial planner and author of “Train Your Way to Financial Fitness,” doesn’t even think people should consider them a surprise. The only twist is the type of emergency the money goes toward – perhaps your car, health care or education.
Personal finance experts differ on how much those in debt should have saved in an emergency fund, but they almost unanimously agree some disposable cash is a necessity.
Read the rest on US News’ My Money Blog