Now, let’s focus on your debt. We have challenged you to be thinking about saving while paying off your debt. How can you achieve both at the same time? Here’s how to start:
First, establish a “wealth” account. Take a portion of your earnings and deposit it into your wealth account. Remember, this is a specific payment that you put away – rain or shine. The concept of “pay yourself first” works to not only pay off your debt, but also leave you with assets once you are debt free. Consider which scenario you would prefer: being debt free, or being debt free with a full bank account. You decide.
After you set up your wealth account, get into the habit of making it your priority payment each month. Priority means priority; you must pay into your wealth account first before you put money towards anything else. You need to pay a consistent amount on a scheduled basis. Even if you start with $10 per month, you will be amazed how quickly your deposits will add up. The amount is not as important as starting immediately. (Do it now!) Even if you are in debt, depositing a portion of your earnings into your wealth account will help form the habit of regularly depositing money.
Next, let’s make a plan to get rid of the debt!