The goal of having an emergency fund is two-fold. For one, your emergency savings can replace your income (at least for a few months) should you lose your job. But an emergency fund has another equally-important function: to allow you to pay for large, unexpected, and unavoidable expenses without incurring debt or borrowing from other savings accounts (e.g., college funds or retirement plans). With the focus these days on the economy and job losses, everybody’s so intent on protecting their emergency fund in case they lose their job, they may be more willing to save instead of pay down debt, or even pay for an unexpected expenses from other sources like credit cards. Is this smart? Consider this example I received from a 28-year old reader: [...]

I frequently write about ways you can improve your credit score, so this post may appear hypocritical. But I’m seeing so many people obsess about their FICO score and other credit scores these days and, quite frankly, I don’t think it’s healthy. Honestly, when it comes to getting your finances in order, your credit score should probably be your last priority. [...]

Here’s another reader question about canceling credit cards:

I recently paid off the last of my credit card debt so all I owe now is a small student loan and my car payment both of which will be done in less than three years. My wife are in the process of consolidating our accounts and joining our finances and I want to get rid of some excess baggage. I currently have the following cards: [...]

Tips on being frugal and raising extra cash are a dime a dozen these days and, chances are, you’ve heard them all before. We all know what we need to do to save money (or earn more); sometimes we just don’t know how to do it. One of my favorite tips for getting some extra cash is selling stuff you don’t use (or can live without). Not only will you make money to save or pay off debt; you’ll declutter your home, too! Here are a few secrets for selling your unused stuff quickly while still getting the best price possible. [...]

In last week’s list of 15 top financial iPhone apps, I lamented the absence of a Quicken Online application. Just one week later, my prayers have been answered. Last Thursday, Intuit released an iPhone app version of the free Quicken Online budgeting tool. [...]

Today, for every homeowner in (or thinking about going into foreclosure), there is somebody who has probably considered getting a great deal on a new home by purchasing a foreclosed home. Although a foreclosed home can be a tremendous deal, buying one comes with certain hurdles that you won’t face in an ordinary real estate transaction. If you’re thinking about buying a foreclosed home, here are four things to consider. [...]