Should You Pay off Debt OR Save for Goals First?

[@jaycee3177]

I appreciate that you two aren’t condescending at all in your advice. I just came from a Ramsay video of the same topic, and it was pretty rough.

[@JTRUTH2025]

Call a Whaaaaambulance...

[@katworkstowander9853]

I advocate an emergency fund first to cover the dead/ dying appliance scenario, while paying minimum on all other debt except one. I’d pay an extra amount on one debt for psychological satisfaction. Once the emergency fund was met, I’d split that payment I was putting toward the emergency fund between debt payoff and a savings goal. My sinking funds were part of my monthly fixed bills. It was really tough at first but being consistent every month is key. Each debt was on a separate piece of paper; I tracked the payments. When I paid off that debt I’d have a debt burning party by setting the piece of paper on fire (safely, of course). I played other games, like every two months I’d add $5 more to my monthly debt payment. Or pay the finance charge along with the payment on the credit card I was paying off, so at least I wasn’t paying interest on the interest. Also, be kind to yourself when working your way out of debt. It’s not easy but it is possible.

[@larryware1]

Great way to manage the debt, Kat. Way to go.

[@lynnoorman2144]

I love the idea of the burning of the tracker. Brilliant way to celebrate one of your cares and worries going up in smoke. Well done!

[@nnb02]

Love the release and celebration of the burning party. Thanks for sharing it all

[@shonversation]

Magnificent 🤗. Thanks for sharing.

[@Musicizmyremedy]

I love that idea! I was burning myself out putting down such a huge amount of money each month and seeing all my hard earned money go away lol. It was starting to make me lose motivation even though I was quickly paying off huge amounts of debt so I’ve decided to play the long game cause it’s not a race to pay it off

[@MariaGarcia-gj5ie]

It's what is frustrating me. Trying to rebuild my emergency fund and paying off credit cards.

[@jacquelinehenry3211]

I can relate. Pay debts first on your credit card as much as you can.You could postpone and pay only minimum if emergency comes again. Keep trying and be proud of yourself for doing so.😉💙

[@kylep3759]

What I do is I save the exact same amount that I pay my credit cards. Example, I'll pay my Apple Card $250 and I'll put $250 in my high yield savings account. I started with 20k dollars in credit card debt 2 years ago, I now have only 4k in credit card debt left to go and 16k saved using this method. Your balances will go down and your savings will go up at the same time. I am thankful to not have a negative net worth any longer, you can do it too. I would suggest everyone try this method you just have to make it a rule and stay consistent and your situation will be much less stressful and frustrating. Hope that helps.

[@bobmulhall8682]

​@kylep3759 if you paid off the debt before you started saving, you have so much more money because you wouldn't have paid all of the interest over the years.

[@kylep3759]

@@bobmulhall8682 No. I don’t do that whole beans and rice, rice and beans bs that Dave Ramsey rants about. You don’t have to live like you’re poor for years to get out of the hole you can still enjoy life and get out of debt and pay yourself at the same time. That guy is like the Jerry Springer of finances, he speaks to weak minded fools which is the majority of Americans like yourself. What I’m doing works for me and has worked for everyone I’ve told. Also, I called all the credit card companies that I owed and told them that I was having a financial hardship and they gave me 6 to 12 months zero interest. So I don’t have to pay any interest, even though I’m not in a financial hardship they don’t need to know that and they don’t care either. Be smart.

[@lukeb6394]

I freaking love these guys it's like a show on local TV or something it's just so wonderful and wholesome ❤️ ♥️

[@larryware1]

Thank you, Luke.

[@alliestrachan2188]

I paid off all my debt in one year then put that money into savings. Been 16 years debt free.

[@ARMYISSUE99]

That’s great, however you got lucky. Emergencies happen and we must juggle life grind and de stressing vacation.

[@ohmcintyre2067]

When I decided to pay off my first mortgage, I used this little trick to keep me going. I got an amortization schedule (pre-internet so I couldn’t print one out ☹️) and every month I tried to add the principal amount that was due the next month, so moving ahead 2 months in the schedule. It is very sobering to see how little you are paying on the principal in the early years, but that does make it easy to meet the next month. It was very satisfying to color in two squares every month and see how rapidly I was moving ahead.

[@ybois3]

This is a good idea. I’ve been trying to figure out which diagram will keep me most motivated to be mortgage free!! It’s closer than ever 🤩👏🤩👏

[@KC-dr3cg]

Whatever you think about attracts more of the same and so that would mean focusing on how well you're doing is very important

[@larryware1]

Good point, K C.

[@FidoHouse]

Very helpful for those of us - like me - who are trying to do two things at once! I especially like the percentages approach.

[@kaitlynyoung1766]

Thank-you for this video When I was paying off my car I threw everything at the car loan and saved nothing, it got paid off quickly but it meant everything else was neglected, once the car was paid off I started to put everything into savings, not spending $ on anything above absolute necessities, after doing thus for a year I burnt out, for a year we saved NOTHING and PAID NO DEBT, well this year I decided it's time to pay off the student loan, as I really want to pay it off before the interest kicks in in August, I'm splitting the money equally between savings and the student loan, and I'm still trying to fit in some fun here and there as low cost as possible to not burn out

[@janetstonerook4552]

I dived into 3 home repair projects this past fall at the same time which emptied out most of my project funds and checking. When I realized I was going WAY over budget, I immediately cut out all discretionary spending and vowed to continue no buy practices for January through March to pay off my overages and build up my financial cushion. I figured these three months are a great time to address this issue because I'm home and not planning any travel or projects during this time..

[@carollandrum678]

I'm also trying to rebuild my emergency fund after having to use it during unemployment.

[@katworkstowander9853]

I was always so frustrated having to rebuild my emergency fund after something happened ( like my refrigerator dying without notice just 2 years after purchase with the warranty just expired). But then I realized I was thankful I could rebuild it instead of having to buy a new fridge on credit, which I would have had to do so in the past. I had to learn a new way of thinking about it.

[@larryware1]

There are always bumps in the road. But, that's what an emergency fund is for. So sorry you had to use it for unemployment. You were wise to have it. So many don't even think about establishing an emergency fund.

[@kevinhamilton6256]

For my money, hands down it's tackle the debt, get it out of the way, then formulate your goals and the path to those goals are EASIER to attain! You only prolong BOTH paying off the debt AND saving the amount required to meet that first goal. A simple $1k-$3k emergency fund is enough to cover many "emergency" (providing it IS an actual emergency) is all you need while getting rid of debt. $0.00 debt means 100% money to save to attain those goals! YMMV ~Joe

[@mijadelsol]

this is what I am thinking I could pay my debt so much faster if I wasn’t saving for an emergency fund and then I have that stagnant energy out of my life!

[@sherribrink5664]

Iam so much more enjoying these budgeting, paying off debt and living beneath your needs videos lately. They are so helpful and understandable.

[@cherlaneharris100]

Hope and Larry, thanks for all of your videos. I've been budgeting for several years now, but your videos have taught me so much more about money management. I actually look forward to living more frugal so that I can stay within my budget, planning for ways to lowering costs and let's face it, even paying off debt when I've overextended myself. (Which I work hard at NOT doing - but things come up). I share your tips and videos with family and friends and look forward to each one you upload. Thanks again for your hard work to inform your viewers.

[@UndertheMedian]

Cherlane, your kind words made my day! Thank you!

[@ZiggyMoney911]

Oh! I’m so glad you are addressing this!!! Thank you!!!😊

[@larryware1]

You are so welcome, priveteuser. Thank you for your comment.

[@ZiggyMoney911]

❤

[@erinshelnutt5064]

WoW, this video was an eye opener. I was putting together my budget and I was thinking I had no debt except my mortgage which I hope to payoff in 3-7 years, until I realized each month all my bills, except my mortgage is taken off my credit card and at the beginning of the following month I payoff the entire credit card for the previous month. I need everything on the credit card, as my husband was in a motorcycle accident 6 years ago and has a TBI, so if something happens to me, I need to make sure all bills are paid before one of my son's takes over. Obviously now I have a complete month of debt I need to get ahead of and have created a Payback Savings to fix this. Thank you.

[@MariaGarcia-gj5ie]

I'm trying to do it at the same time and the process is slow...

[@TonyaApplegate]

Thank you I really needed to hear this. I have been wanting to get my house paid off and was about to abandon all the rest of my goals cept for my savings. There are some things I can use plus I have a small plumbing issue where it overflows behind the washer. I have to empty the water in buckets (possibly roots in system). Not an urgent issue but of high inconvenience. But could be an expensive job. I didn't want it to interfere with my mortgage payoff. I realize that if I prioritize all those plans I can still have the house paid off in 2025.

[@larryware1]

It's a lot to juggle for sure, Tonya. Keep working on that mortgage, but have someone give you an estimate on that plumbing issue.

[@citygurrrl6387]

thats not a small plumbing issue. that can turn into thousands to fix if its roots in your sewer main! you will have poop water flooding your home. def have a plumber with a camera scope come out and clear the roots. i did it 2x. about $400-500 in NY

[@TonyaApplegate]

@@citygurrrl6387 Even if I don't have toilet problems? I have shower and washer trouble but the roots have been removed cept one bush where gas line is. That needs a plumber because it is also where the washer pipe drains.

[@TonyaApplegate]

I'm afraid of being taken because I am single and live on a lake not a good combination. I pray that I find a good plumber.

[@citygurrrl6387]

@@TonyaApplegate ask people in you neighborhood or friends for referrals. get quotes from 2 or 3. maybe have a guy friend come over when they are there, so you feel better about not being taken advantage of. but if all are generally in the same price range then you know they are most likely giving you the price it costs. plumbing isnt cheap! we have sewers, so all the "waste" water goes into the same main line out of the house. sink, tub, toilet. maybe its different by you. but if you have tree roots you could also have a collapsed pipe.

[@kelsiereid5513]

The videos this month are seriously what I needed. I had Point A and Point B and you guys showed me the path of least resistance to get there!! Thank you so much!

[@larryware1]

So glad these videos are helpful to you, Kelsie! You are so welcome.

[@yanicamars1]

My husband and I have gotten so much help from this channel, thank you! Hope, you look especially pretty in this video with this outfit. Just had to compliment you, lol! Thanks for all you do and for your Biblical perspective on frugality. We love and appreciate you both.

[@UndertheMedian]

We are so glad to hear that we've helped. Thank you for your kind compliment. Goodwill was having a $2 sale and I bought more sweaters than I will admit. LOL! But... when my friends asked me to go Goodwill hopping with them for the $2 sale I had just cleaned out my sweater drawer.

[@KC-dr3cg]

I'm afraid that inflation is so expensive regarding repairs that I cannot deplete so much of my cash on hand, yet interest on credit card debt is skyrocketing making it hard to pay it down.

[@enyonamedoh9082]

Love this! Thank you so much for this video!

[@twothousand8051]

Hope, Larry you’re awesome! Keep up the good work!

[@larryware1]

Thank you, Two Thousand.

[@sdelong74]

I love the realistic advice you guys give. I believe you should do both save and payoff. I get two pays a month. I split mine in two. Pay myself first is the rule. Then I do the household expenses. Debt is last. Rolling my snowball and I have goals set and a secondary gig. Credit Karma has been helpful by checking my credit score.

[@Nwakaego_]

Love your method and advice for paying off your debt. Thanks for sharing.

[@mariesharp1186]

Hope and Larry, thank you so much for your great advice. This video really helped me a great deal!!

[@NC-dv8yf]

Thanks for the video - this is actually something that has been on my mind - I wanna pay off debts and get some Home updates so I appreciate your video- thanks 😊

[@Orangetiger78]

I just found your channel. Thank you so much for this video. I've been so confused as to which one to do first, and you made everything so clear and is a plan that I can implement. Most financial people give either or advice which makes things even more stressful. You've got a new subscriber here.

[@fourdayhomestead2839]

Working to get emergency fund back up, but car isn't fixable 😞 (driving a borrowed ratty car since I drive a home care client places). Between a rock & a hard place right now😒

[@larryware1]

So sorry to hear that, Four Day. Prayers for your situation.

[@Thefarm1889]

This is great for me, I was working how to pay and save. Thank you so much!

[@larryware1]

Thank you, Kathy.

[@abbeyl6115]

Always I consider and have paid my debts off first. That is a business agreement or promise to pay another back in full. Pay off full before any of life's crises or bumps in the road will occur. They always deal. Pay off the debt and once done in full, one can quit having to reminding every month that one extra debt or two needs to be paid. Feels good when the debt monkeys are paid off and off one's back. Peace of mind.

[@johnkatkus7143]

Thanks for the video. On my to get this setup - please keep up the great work you both are doing.

[@larryware1]

Thank you, John.

[@stevegorkowski3246]

One thing in my hobbies that I do to help free cash is do the project that saves you money first. I am working on auto closing curtains this winter to save on heat. I am building seed starter racks with lights to save on the starter plants. I will not start building speakers until later this year! All save me money but the first two have a direct effect on the budget and can help pay off debt faster.

[@judithvallembois2744]

This is one of the best frugal tips. Your "hobbies" are money saving projects. Great ideas on planning too!

[@michelleraney3577]

What are auto closing curtains?

[@stevegorkowski3246]

This type of project snow balls as the savings feed more projects. The key to think of what is free. Free sunshine, leaves in the fall, wild plants for medicine, wood chips for mulch from the city's local compost pile. Look at the skills you have or learn and leverage that to save money. Enjoy your hobbies and save money.

[@KC-dr3cg]

@@stevegorkowski3246 Accepting my physical limitations as I age means that I do things slower or differently and not give up

[@stevegorkowski3246]

@@KC-dr3cg That all that matters. Have a great week!

[@kimsrurallife8775]

Will try to make it tonight.

[@leanneg9388]

You guys are so cute!! And love the advice and how you break things down so well!

[@nicolejohnson5225]

Hope you look so good in your cardigan sweater💕

[@mae9064]

Keeping it real Hope &Larry. Thanks ❤

[@donnawoods8039]

As soon as we retired we took our pensions and IRA money to pay off the house, student loans and cars. Now we are debt free and still have enough to save 7k a year. However we had to become very, very frugal. I am glad we did all of our traveling when we were younger.

[@lorettaolson8748]

Our refrigerator/freezer died. We got a new one from a place that offered a payment plan interest free for 18 months. We pay it off over time.

[@alisawoods555]

Hi Good morning I AM Doing A No Spend January And Had So Much Fun Now I Am Going To Do A No Spend February I AM So Having Fun With This And Emergency Funds Are Better

[@Acr24608]

Very good topic!!!

[@larryware1]

Thank you, Amanda.

[@kori8455]

I was just contemplating this very thing tonight. Deciding whether or not to pay off mortgage versus invest for retirement. It’s a hard one when you’re so opposed to debt like I am. I’ve decided to invest my 15% and pay down the mortgage with any extra money. Thanks for your advice and thoughts!

[@momof2momof2]

You should do both.

[@larryware1]

Right.

[@kathysorensen798]

We have had some difficult times the last 15 years. My husband is disabled. Our health care expenses are unreal. We have normal monthly expenses but it’s the health care costs that prevent us from saving. We make too much money they say to qualify for anything. I’m to the point of dropping our life insurance in order to have an emergency account.

[@AEvans36963]

Unless you know you can afford to cover your expenses and debts out of pocket should you lose your husband(Lord forbid), I would not recommend cutting out life insurance. There has to be areas in your budget that you can cut back on. Or try to see if you can find a policy that costs less.

[@KC-dr3cg]

Is there any chance that you could find less-expensive life insurance before you cancel that your current life insurance. Could you possibly lower the amount of coverage?

[@KC-dr3cg]

If you're not already going to a food bank that might give you more money in your budget

[@stevegorkowski3246]

When you reach this point you need to seek out a professional financial planner to help you out of cash flow issues. They can set up a plan to walk you out of the issues you have.

[@sharonfleshman6961]

Have you had a chance to explore ways to lower your Healthcare costs? Medication from one of those extra insurance cards? Do you live near a border that you can cross to purchase meds cheaper? Can your husband work a very casual gig? I am guessing an extra hundred a month will help. Or you doing something small. Can you rent out part of your house or garage for storage? Or the yard for RV storage. ( There's an app for that. :) )

[@GEAUXFRUGAL]

Not in debt but trying to avoid it. My home is not safe the door allows pest. I'm thinking about setting my camp equipment and doing that to work on my house to tune it up.

[@pamelaking4414]

Florida power light wants 50.00 more for electric each month for 1000 kilowatts and less used hard be on a tight budget

[@0773heidi]

I’ve got a special birthday this year and really want to spoil myself as all I do is pay bills and drive s me nuts help lol x

[@verreal]

I have no debt. I also don't have much of a life. I do have some backup fund for appliances (and I noticed the comment right below as I'm typing talking about appliances dying). So I guess the way is clear for me. Idk why I'm watching this. I guess I might need the info in the future.

[@regdesousa9763]

I need to pay off three credit cards .I know this will be probably sound dumb but I have a six month savings And enough to pay them off but I am so afraid to pull the trigger.

[@MariaGarcia-gj5ie]

Watching this again in case I missed anything.

[@tirzah-marielewis3447]

I think people stop budgeting because they are tired of watching themselves fail . This is my third round with budgeting for a family of 4 trying to dig out of this hole and part of me says well if I was going to be enslaved forever at least before I enjoyed myself. What’s the benefit now? Oh I know exactly where it fell apart this month? Yeah good times.

[@jwoooooooo]

Love your sweater Hope 😍

[@KC-dr3cg]

Yes!

[@UndertheMedian]

Thanks. I just got it at Goodwill. They were having a sale and it was $2.00.

[@UndertheMedian]

I just got it from Goodwill. They were having a $2.00 sale.

[@jwoooooooo]

@@UndertheMedian that is my kind of price!! Lol!! Very nice 😀😀

[@HoneyBee-pc3xi]

You look stunning today, Hope.

[@saritasmith7243]

How can i download that sheet in your video

[@jennifercaskie3895]

You look pretty today Hope!

[@suefleming]

All I do is spend as little as possible. And I mean as LITTLE as possible!!! Everything else is savings. I buy used as often as possible. Fix it up, Wear it out, Use it up, Do without.

[@loveandjoy810]

I must know where Hope got that sweater. I want one so bad.

[@UndertheMedian]

I just got it from Goodwill. They were having a $2 sale. Any piece of clothing that was regularly priced at $5.99 or below was just $2. If it was regularly $2, then you got half off.

[@loveandjoy810]

@@UndertheMedian Boo! I was hoping it was someplace that I could walk into and just get it. But buying clothes from Goodwill and saving lots of money is very on brand for Hope and Larry. 😉👍🏽

[@UndertheMedian]

@@loveandjoy810 , so sorry. But, that sweater has definitely become one of my new favorites

[@CreepingThyme]

So now that you are debt free & have a fully stocked emergency fund, what are your goals & what are you saving for?

[@marcielynn4886]

Zero debt here 5 g in savings. Life off the grid.

[@royharper2003]

you act like that is something to be proud of

[@VocabuLarry85]

Hey, my name is Larry. Got a sub.

[@kellykimball2099]

Paying off debt,needs to pinch, so you don't get in to debt again 😉

[@ladyhawk9032]

Yes!! It helps youv not do it again.

[@sarahmacrae8277]

You don't need to punish yourself not all debt r even most is because of poor decisions some people are in debt because of some reckless spending , some people just got ill and could not work, or have a kid that needs special care or have legitimate debt for studies or a mortgage.

[@ladyhawk9032]

@@sarahmacrae8277 Not every debt is due to reckless spending etc and most of us on here are not referring to that type of debt. Most of the debt that people are trying to get out from under are from reckless spending on credit cards or signing up for a student loan debt that they want others to now pay.

[@pennybentley5125]

Dave Ramsays way works 😊

[@larryware1]

It does, Penny. Very practical advice.

[@sophiawolthof1238]

👍👍👍

[@0flan]

Pay of dept. You will save more money in interest then you will make in interest.

[@lisachubrilo]

Hope U look so cute..love your outfit

[@UndertheMedian]

Thank you so much 😀 Got it from a recent $2 sale at Goodwill.

[@catslove3884]

Wow Larry's hands and nails look fab! Did you two get manicures?

[@larryware1]

Thank you, but no. No manicures.

[@milda0820]

💖

[@kenyonbissett3512]

Write out that budget with fixed and variable costs. Next, look at how you can reduce your expenses. Brainstorm cutting the cost of everything you do and buy. Clothes: turn your clothes into a capsule wardrobe, free from family/friends, free from “Buy Nothing or Free Cycle,” deeply discounted stores, yardsales, thrift stores. Insurance: make that comparison call. Property taxes: challenge your taxes, some markets have dropped 30%, i can only challenge at certain times of the year, put it on your schedule. Food: watch videos of how to lower your food bill, personal items and household goods. Replacement for household appliances: plan to use an alternative while you get the best deal, could be used, could be new (on sale, discount code, power company rebate, Rakuten rebate, use discounted gift cards to pay, buy discounted gift cards with a credit card the gives you points for purchases). My appliances were new but I averaged $325 with the original cost $750.

[@melissawright4040]

I am thankful that I am not indebt and have a small amount on a credit card. So I try to put most of my pay check in my savings. So I know I will have money for house and car insurance and an emergency fund

[@LxTxSURGE]

o a washing mashin i got hands you know and that's a fact i wash by hand alot now 🎉🎉🎉

[@FreshGrey-pm4vw]

what happens when the saved cash is no longer accepted? maybe buying hard goods now might be a good idea. ***In other words cash is better than nothing for a while however if you do not wish to accept the digital mark in order to live your life, you might consider buying "hard goods", such as tools, batteries, first aid, generators, etc". I dont see any wisdom or logic in not having these things on hand now bc if you are not one to take a mark in your head or hand and to transition to digital currency, you might regret not getting some supplies right now- while you can,

[@abbeyl6115]

Lived in Florida for a decade through several hurricanes. When the electric goes out, so do the ATM machines, banks and retailers cash registers. A few times, had to go to a store or two and the store cashier's handwriting the purchases the old fashioned way with pen and paper. Trust me, cash was definitely king.

[@KC-dr3cg]

@@abbeyl6115 good advice

[@larryware1]

I wouldn't worry about that right now. Make sure you have some cash on hand in case you can't get to your money (power interruptions, etc. ) from the ATM machines - at least enough for one to three weeks.

[@betiryanmercer7301]

Don't get into debt in the first place

[@Neji1984]

Too late for like 90% of people

[@daveicc495]

Just listen to Dave Ramsey

[@heatherknits124]

Always pay your debt off first. From Romans 13:8- Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law. There is also Leviticus 19:13, and others, which are explicit. If you have the money to pay your debt, you pay it. I spent a very long time in debt, and it made me homeless (no one would rent to me) and I was miserable. I still often have nothing left at the end of the month, but I’m trying to conquer generational poverty. I very often funnel any extra money into my grand babies. Their dad works full time, makes good wages, and I have come to the conclusion that my retirement package is to work full time to make sure my daughter gets to have socks and shoes, too. And that the grand babies get to have a few fun things AND an unending supply of their favorite fruits and vegetables. A full time job, even one that pays well, doesn’t mean a man can tie the shoe strings anymore. And, my son, who works full time, he very often must go shopping at my house. I think he’s stopped overthinking the pot of chili, and seemingly random full tanks of gasoline (I just drop my truck off for repairs, and take his as a loaner). Poverty is hard, but it’s much harder when you’re in debt! Thank you for this discussion. It helps put things in perspective, if you have any breathing room in your budget.