Achieving Financial Goals

Setting money aside for a few months' income can be difficult, especially if you're also trying to pay off debt from credit cards and/or loans. Though everyone's financial position is unique, many people debate whether saving money or paying off debt should be the priority. But there are ways to accomplish both at the same time.

Getting Out Of Debt While Saving Money

Have you ever thought about paying off your debt and growing your savings at the same time? It is possible!

Start by having a clear goal in mind. By determining where you want to be financially, you can plot a course that gets you there. Then, know exactly what you owe. Keeping track of your debt and being aware of fees and interest could help you prioritize and pay off your debt more quickly.

Next, create a budget to keep you on track. You can adapt the 50/30/20 approach, where you divide your income into three categories: your needs, wants, and savings accordingly. If possible, build a buffer for your checking account. Let some of your extra cash sit in your checking account rather than moving it to your savings account.

Any extra money after buffering your checking account and managing your debt can build your savings. Monitor your progress as you save more money and pay off your debt. Building momentum can help you make smart decisions, like saving more money and spending less.

A combined debt reduction and saving strategy will lessen your debt load and make you feel better about the future. Besides, real-time savings tracking will keep you focused and motivated.