Should someone save for emergency even when they are owing debts?

[Fidelia]

There are some people that are in some forms of debts that they have to pay. After meeting their basic needs, and they have some funds left to meet just one other thing, is it wise to prioritize emergency savings over paying off those small debts?

 

[gwolf666]

I believe the decision between saving for emergencies or paying off small debts depends largely on individual circumstances and available funds. Personally, I consider having an emergency fund essential to avoid accumulating more debt in case of unforeseen events, such as unexpected repairs or illness. If, after covering basic needs, some money remains, I think it would be wise to allocate a portion to creating or strengthening that fund before paying off small debts, especially those with high interest rates. However, if those debts have low interest rates and don't represent a significant financial burden, it can also be worthwhile to pay them off. Overall, prioritizing emergency savings seems to me a safer long-term strategy because it prepares us for the unexpected and provides greater peace of mind.

 

[King Belieal]

I can't sleep when I am owing debts. I would prefer to pay off small debts than save for emergency. Debt free life makes my mind at ease.

 

[eLdavis]

I think it would be best to clear up all your debts first before you start placing your focus on other things.

 

[Augusta]

Yes, If you make it a priority to save while paying down debts, then you might be financially prepared when something unexpected comes up.

 

[Kross]

Even if it is a very small amount that you can save for your emergency, that is fine. Not saving at all is bad.

 

[Augusta]

It still makes sense saving but you need to try and pay up your debts to avoid being embarrassed

 

[Fire&Rain]

Personally, I’d try a compromise. If you have leftover funds after essentials, put a small portion into emergency savings while using the rest to chip away at debt. Paying off debt is important, but emergencies can happen anytime. Having both a small safety net and a plan to reduce debt keeps finances healthier and prevents setbacks.

 

[wisdom01]

Personally, I’d try a compromise. If you have leftover funds after essentials, put a small portion into emergency savings while using the rest to chip away at debt. Paying off debt is important, but emergencies can happen anytime. Having both a small safety net and a plan to reduce debt keeps finances healthier and prevents setbacks.

Smart move! Balancing debt repayment with a tiny emergency fund is a solid strategy, flexibility is key in personal finance.