In this video, I discuss the tips for getting out of debt and saving money at the same time. When you are looking at a mountain of debt it can be life crushing. I hope these money tips help set you on the right path.
There are 3 buckets you should be dividing you total income into to get out of debt and save money simultaneously. Those three categories are…
- 1. Expenses (70%)
- 2. Debt (25%)
- 3. Saving (5%)
If you can get your expenses down to 70% of your total income it will leave you with 30% of your total income (after tax). that extra 25% will go down to hitting your smallest debts first and work itself down to the biggest! During this “Snowball method” of paying down debt, you will be saving 5%. Its not a life changing amount, however it is a psychological win when you get to see debt go down and savings go up.
You can also GIVE that 5% away to increase your happiness during this process (I would recommend it!)
