DIY Financial Plan Part 2: Debt & Emergency Planning

Hey friend,

Today, we’re diving into part 2 of your financial plan: Debt and Emergency Planning

In Part 2 of our DIY Financial Plan series, we’re helping you understand and plan:

💳 Debt payoff strategies
🧠 The psychological weight of debt
🚨 Emergency funds and what they’re actually for
🛡️ Insurance, and how to know what protection you really need

If you haven’t already, don’t forget to grab the free DIY Financial Planning Spreadsheet to map out your financial plan in one place.

First off, debt. Debt payoff gets talked about like it’s just a math problem.

And technically... it is.

But if debt were only math, everyone would use the highest-interest payoff method, never spend emotionally after a hard day, and feel completely calm watching their savings account fluctuate.

Instead, debt affects way more than your calculator.

It affects your stress levels. Your decision-making. Your relationships. Your sleep. Your sense of safety.

And that’s critical to consider when creating a debt payoff plan.

Another underplanned category is: emergency planning

We all know you need an emergency fund saved in a high-yield savings account like the one at CIT.**

But that’s not where emergency planning ends. You also have to consider the costs that are outside your saving capacity: health emergencies, auto accidents, disability, and death

Health: You NEED some kind of healthcare coverage. If traditional health insurance is too expensive, try a healthcare sharing program like Liberty Healthshare (Jen has been a member through a pregnancy and hospital visit). If you’re self-employed, between jobs, or exploring alternative coverage options, Pivot Health** may be less expensive than COBRA.

Auto: Consider upping liability coverage to $100K. Its becoming more and more common for auto accidents to exceed state minimums for coverage.

Disability: data suggests that about 1 in 4 of today's 20-year-olds will experience a long-term disability before they reach retirement age. If your family relies on your income, this could be an insurance you need to look into.

Death: If people depend on your income, term life insurance can provide affordable protection without unnecessary complexity. We like Ladder** and Ethos** because they make applying straightforward and transparent. Compare quotes from multiple companies to see which offers you the best rate. The amount is up to you but we recommend starting with $500,000 of 20-year term life insurance.

One thing we really emphasize in this episode is that financial planning gets more complicated during transitions and high-income seasons. Sometimes DIY is enough. Sometimes it’s helpful to bring in a professional perspective. Especially if:

• You’re considering refinancing, restructuring, or consolidating debt as a payoff strategy

• You have both high income and high debt, like physicians, attorneys, or other high earners

• You receive a large lump sum, inheritance, or settlement ($100k+)

• You’re navigating a major life transition like divorce, death, or caregiving responsibilities

• You’re being sold an insurance product and aren’t sure whether it actually makes sense for you, especially umbrella policies or permanent life insurance

In those moments, having a trusted professional working in your best interest is invaluable.

If you want to work with a Certified Financial Planner who understands values-based financial planning, you can learn more here.

You don’t need perfect finances to start building financial security. You just need a plan that helps you make your next decision with more clarity and less fear.

Jen & Jill 💛

**Means this is a sponsored or affiliate section. We may earn a small fee or commission when you choose to try one of our sponsor or affiliate partners. But opinions are still 1000% our own.