Step Three: Increase Your Emergency Fund
No one wants to go back in debt but life is full of twist and turns. Your initial emergency fund is a good buffer to deal with the unexpected. The third step is designed to push you up to total financial freedom.
Keep the dedication of saving going at this stage. All the extra money that was previously used for paying off debt, loans and everything should be used for the emergency fund. Your emergency fund should be enough to cover 6 months of your essential expenses in case of emergency and keep it where it should not be touched until there is an EMERGENCY.