If you're just starting out, your first goal should be to save $1,000 in your emergency fund.

Why $1,000?

Having $1,000 in a savings account for emergencies only is your first buffer against the unexpected. What if you drive over a nail? What if you chip your tooth? It's an amount that you can achieve no matter where you starting from. Without at least a starter emergency fund, some of those unexpected costs could start you down the rabbit hole of debt. And staying out of debt is much easier than climbing your way out of debt. You can do both but it's better to avoid that trap. The $1,000 emergency fund is a good starting point. that trap. The $1,000 emergency fund is a good starting point.