Savings or debt elimination: Can you do both?
If you have ever felt like your efforts to improve your personal finances are in vain, you are not alone.
Each day millions try to stretch money to cover living expenses, debt repayment and other financial obligations.
Far too many Americans find themselves coming up short or just covering the basics. With little money remaining for savings or investment opportunities, these families face an uncertain financial future.
Eliminating debt, especially high interest debt, is crucial to long-term financial stability. By eliminating debt you will improve your credit and increase the amount of money left over in your budget for other financial goals.
Savings are just as important because they provide an insurance policy of sorts should you find yourself short on cash or facing an unexpected expense. The challenge is finding a way to accomplish both goals with a limited amount of income.
Paying down debt and building savings at the same time is difficult but not impossible.
The goal is to apply as much money as possible toward debt elimination, which helps produce long-term savings.
To build savings at the same time, you will either have to take a small portion of the budget allocated toward debt repayment or find a way to increase your income.
Regular contributions to savings are key to long-term growth.
Decide on an amount you are comfortable and commit to putting that money aside each week.