We want to save 3 months of living uneffected. But since we survive on one income only, and have several people who could help us if needed, we are not continuing to fund that particular emergency fund at the moment.

Instead, we want to fund a $3K-$6K home/car/dental/health liquid emergency fund for expenses that pop up at random. This is for unexpected expenses (Murphy) in those areas, and if depleted, will still leave our job loss emergency fund untouched.

We still have CC debt, but it is our only debt and on 0% card. Right now we are stashing all of our extra $ into savings, so that it is our liquid emergency fund, then when that 0% interest ends, we will either roll it over to another 0% until we have both emergency funds fully funded, or we will pay all the CC debt off with the liquid emerg. fund and start all over saving up again.

The reason we have CC debt is because of unexpected home repairs, car repairs, dental issues, etc. So I am hesitant to deplete an entire fund just to pay off a CC. It doesn’t make sense, based on our history.

It is important to analyze your reasons for getting into debt and then make a change that prevents it from happening again. Our issue never has been shopping, eating out, buying excess, etc. It’s never been anything that we have the ability to control. It has been unplanned expenses. So it doesn’t make sense for us to throw every free penny at debt. If we had a spending problem, I can see where that would be the right plan of attack.