The Buffer Comes Before the Blitz
It feels wrong to save while paying 22% interest. Do it anyway. Without a buffer, the first car repair or dental bill puts the debt straight back on the card and takes your motivation with it. A small fund is not a maths decision — it is what makes the plan survivable.
How Much, At Each Stage
- Stage 1 — $1,000 (or one month of essentials). Build this before attacking the debt hard.
- Stage 2 — clear the consumer debt while holding that buffer untouched.
- Stage 3 — three to six months of essential expenses. Build this with the payment you were sending to creditors.
- Self-employed or single income? Aim for six to nine months.
Build the First $1,000 in 30 Days
- Sell three things you have not used in a year.
- Pause every non-essential subscription for one month.
- Take one extra shift, or a weekend of gig work.
- Bank any tax refund, rebate, bonus or gift in full.
- Run a strict no-spend fortnight on everything except food, fuel and bills.
Where To Keep It
In a separate high-interest savings account, at a different bank from your everyday card, with no debit card attached. Accessible within 24 hours, but not visible when you are tapping your phone at a checkout. Never in shares, crypto or anything that can be worth 30% less on the day you need it.
What Counts As an Emergency
Job loss, medical costs, essential car repair, urgent home repair, emergency travel. That is the whole list. A sale, a holiday, a new phone and Christmas are not emergencies — they are planned expenses that belong in the sinking funds on your budget.
Rebuild It Immediately
When you use it, that is a success, not a failure — the system worked and you stayed off the cards. Pause the debt attack, rebuild the buffer, then resume. This one habit is what separates people who get out of debt once from people who stay out of debt for life.