 TITLE: Should I Save or Pay Off Debt? CONTENT: When to Save Money Before Paying Off Debt\n-----------------------------------------\nAn emergency fund will protect you from taking on further debt, depending on what emergency expenses you may incur. Regardless of the type of debt you have, ideally you'll also set aside a little bit each month to eventually have three to six months of basic expenses saved, which is what experts recommend. That will give you the security to cover rent, groceries, utility bills and minimum debt payments if you unexpectedly lose your job.\nIf you can't save each month, consider contributing part of your tax refund or bonus at work to your emergency fund. Sure, you can still use part of it for fun stuff like new hiking boots. Depriving yourself could make you so miserable you end up falling off track. But putting a portion aside in savings will give you a sense of accomplishment—and, more important, protect you when unexpected future expenses pop up.\nIn some cases, you can skip right to saving, instead of sending extra to your debt each month. If you have low interest debt, such as federal student loans or a mortgage, you can likely safely pay the minimum and focus on saving with any extra cash you've got. (However, adding extra principal payments to your mortgage each month can reduce the life of the loan, and thus the interest you'll pay.) Once your emergency fund is in good shape, boost your retirement savings or work toward building a down payment for a house or car. END