Do BOTH simultaneously with this approach:
Step 1: Save a $1,000 starter emergency fund first (2-4 weeks).
Step 2: Attack high-interest debt aggressively (credit cards at 20%+).
Step 3: Once high-interest debt is gone, build full 3-6 month emergency fund.
Step 4: Pay off remaining lower-interest debt.
Why $1,000 first? Without ANY savings, every unexpected expense goes back on the credit card — creating an endless cycle.
More details: Emergency Fund Guide
Disclaimer: This website provides general educational information only and does not provide personalized investment advice or recommendations. Financial decisions should be made after considering individual circumstances and consulting a qualified professional where appropriate. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance does not guarantee future results.