Now that you are free of all debt apart from any mortgage that you may have it is now time to super charge your emergency fund so that you have 3-6 months of expenses saved. This money again should be placed in a saving instant access account so that in an emergency you can withdraw the money if required without any penalty. Again this money should not be used unless it is a genuine emergency. You should not invest this money in any type of investment as we are really not concerned about this money making you money it is purely to be used for its purpose.
Rather than continue talking about debt I thought it would be a change to look at housing again and how much we should be spending on our housing. I have written quite a lot about debt and paying off debt but housing is one of those things that people wish to buy that will more than likely require the taking on of some debt. This is mainly due to it requiring several years to be able to pay for a house out right so it is more than likely that you will need to take on some debt in the form of a mortgage. But one of the most important things to consider when buying a house is your ability to afford the house payments. If you are struggling to save money when you are renting and your rent is not equivalent or more to the proposed mortgage payment then you will need to look at either saving more money or probably not looking at buying but continue to rent.