Set up your Rainy Day Fund first.  Target a fund that has, at least, €1,000.  This gives you a safety cushion to tackle unexpected expenditure without having to re-think your budget or have to dip into your credit card or get a loan.  When you use your Rainy Day Fund make sure that you replenish it again to the target you set for you and your family.  Keep in mind that having a Rainy Day Fund allows you to handle emergency spending without sliding further into debt. The goal is to get out of debt for good.