When I first started working on my emergency fund, I was in debt. A lot of it. I had credit card balances I wasn’t proud of and a lingering student loan that felt like it had its own zip code. I remember feeling like I had to choose between two impossible options: build an emergency fund or pay off my debt. I couldn’t do both, right?
If you’re stuck in this same mindset, I get it. It feels like there’s never enough money to go around. Debt demands your attention. Your emergency fund feels like an afterthought. So, what do you do when both seem equally important? For me, it wasn’t an easy decision, but here’s what I eventually learned: you don’t have to choose between the two—you can do both, just not at the same time.
At first, it was about finding balance. I couldn’t throw every extra dollar at my emergency fund while my credit card interest rates were climbing. But I could start small with both. I prioritized paying off the highest-interest debt, while setting aside tiny contributions to my emergency fund. Every paycheck, I put $10 into my savings account, no matter what. It didn’t seem like much, but it was a start.
What I learned during that time was that building an emergency fund while paying off debt isn’t about doing both perfectly. It’s about doing what you can, when you can. And those small actions—making a payment towards your debt and putting away a bit of money—add up over time.
After I paid off the high-interest credit card debt, I turned my focus to my emergency fund. At that point, I could afford to save a bit more each month without worrying that I was neglecting my debt. I found that the process of building up my savings wasn’t as overwhelming as I initially thought. It didn’t need to be a huge amount, and I didn’t need to have it all at once. The key was consistency.
Now, I have a comfortable emergency fund. It’s not huge by any means, but it’s enough to handle small financial hiccups without stressing. And my debt is manageable. I no longer feel like I’m juggling two massive, impossible tasks. I’ve learned to take one step at a time, knowing that both my emergency fund and my debt can be handled with a bit of patience and a lot of consistency.
Here’s my takeaway: if you’re in the same position—juggling debt and savings—remember that you don’t have to choose one over the other. Start small, do what you can, and focus on progress rather than perfection. It’s about finding balance and working towards both goals at the same time, even if it takes longer than you’d like. And when you eventually hit those milestones—whether it’s paying off a loan or building a healthy emergency fund—it’ll feel like a big win, because you know you’ve been steady, persistent, and kind to yourself along the way.