Dave Ramsey Baby Step # 1- Question?

I have been reading up on Dave Ramsey and his methods of paying off debt. I have sorted out my bills so that I can start Baby Step # 2, but I dont have any money to start my Emergency Fund. I know that most of us are supposed to get back money for a Tax Rebate this May. What would be best-- Should I use that money... show more I have been reading up on Dave Ramsey and his methods of paying off debt. I have sorted out my bills so that I can start Baby Step # 2, but I dont have any money to start my Emergency Fund. I know that most of us are supposed to get back money for a Tax Rebate this May. What would be best-- Should I use that money to fund my Emergency Fund or start paying off debt?

Also I read that Dave says if you make under $22,000 a year (which I do), that your Emergency Fund can be $500 instead of $1000 because you already have a small income. If i get back about $900 for the rebate, should I save the whole amount in the fund, or only $500 for it and use the rest to pay off debt?
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