Debt Snowball Savings Account aka Small Emergency Fund Account

Prior to hubby’s 50% pay cut, there was always a plan to implement Dave Ramsey’s Debt Snowball Method to pay off the AKPK debt repayments from smallest to largest once both the small and big emergency funds reached RM10,000 respectively.

However, there’s a change of plan now! @.@

Even though the small emergency fund has reached its RM10,000 and the big emergency fund has been 56% towards the goal, hubby’s 50% salary cut and uncertain online income of mine have made me think twice.

Finally, a decision has been made, that’s throwing the extra money into the big emergency fund account until it reaches RM10,000.

Once it reaches RM10,000, I will keep rolling a certain amount each month into my small emergency fund savings account.

Once that certain amount of money is enough to pay off a small credit card debt, I will pull that cash out and pay off the debt.

In this volatile economy and situation, I think having more cash in savings account is safer than having lower debt. In other words, having a debt snowball savings account brings more security.

So, reaching the RM10,000 goal for the big emergency fund account and then turning the small emergency fund account into a debt snowball savings account!

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