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Building an emergency fund is important to avoid debt. Aim for three to six months of living expenses. This fund helps cover unexpected costs like medical bills or car repairs. Start small and make regular contributions until you reach your goal. Tip number three. Build an emergency fund. Aim for three to six months worth of living expenses. This fund will help you avoid debt in case of unexpected expenses like medical bills or car repairs. Start small if you need to but make regular contributions until you reach your goal.
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