What’s More Important: Paying Off Debt or Saving Money?

When you’re looking to get on top of your finances, you’re faced with a tough question: should you prioritize paying off debt, or saving money?

In this case, it can be both.

Emergency funds are first

If you have the luxury of enough disposable income to make the minimum payments on your debt while still saving some money, you should first establish an emergency fund. The general recommendation would be to save about three months of living expenses before being more aggressive about debt payoff.

That may not be an option for many Americans saddled with credit card debt. If you’re stuck choosing between saving money or paying off a card, start with the credit card until your minimum payments allow you some money to channel into that rainy day fund.

Aggressive debt payoff

Once that’s established, you can dive head-first into that aggressive debt payoff with peace of mind that you’re covered if something happens with employment, a family emergency, or other unexpected circumstances.

Get rid of that devious debt! The math is simple: each dollar you accumulate as interest on something like a credit card or loan is a dollar you owe in addition to the money you borrowed. Patch up that leak before you worry too much about establishing a larger nest egg.

Use BuckUp to unlock the value of your devices

When you need quick cash to help bridge the gap between paychecks, or you’re just looking to offload a phone, computer, tablet, or smartwatch you’re not using, BuckUp can help you do that without taking on any debt. Instantly get cash and ship your item up to 30 days or return the funds. Food for thought!