03/16/2019
How do you tackle SAVING when you have debts, investing on your mind, and not the ideal income you're looking for?
•
Saving is crucial, so no matter where you are financially, you should be putting money aside in emergency savings. This will make you avoid falling back into debt and losing nights of sleep. It's always good to anticipate for the rainy days when the sun is out.
•
With that said, how do you balance your debt payments, invest, and make room for saving? A good starting point is looking at where your money is going to begin with. Are you spending too much on entertainment and eating out? Could you put a portion of that towards saving? How much do your minimum payments for your loans, credit cards, etc..., amount to? Maybe, if your income allows it, stick to all minimum payments except for one of them, and add $25 to $50 to that monthly payment. Then allocate a portion of your income to saving. Go for the $1,000. Maybe then look into investing.
•
I used to be obsessed with paying down my debts, but after what happened with all my car expenses in the past 6 months, it opened my eyes how much more important having savings can be. I'd much rather plan out paying of my debts, without paying so much over minimums and using the snowball or avalanche methods, so I can grow my savings. Remember, savings make my net worth higher. Eliminating debt can only bring me back to a zero balance. Being debt free is important, but what's the point of reaching that goal with no savings? You'd put yourself in a situation to get back into debt come the next unexpected expense.
•
Happy Saving!
- YMS Founder/CEO
