GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
it’s possible for you to read more about oureditorial guidelinesand our products and servicesreview methodology.
Plus, it becomes more challenging to make progress toward other goals.
Here are the steps she suggested to follow after accumulating a $1,000 emergency fund.
This step requires getting strict with budgeting and scrutinizing expenses to reduce or cut.
Just see to it that extra income goes toward debts, and not splurges.
Cruze highlightedpopular household itemssuch as electronics, clothes and furniture.
Just be mindful to avoid scams and find safe ways to get paid and hand over goods.
Cruze recommended temporarily discontinuing investing until the debt is gone.
Once youre debt-free, your extra money can go toward filling up your emergency fund and resuming investing.
Cruze advised investing 15% of earnings at that point.
This includes accounting for other income sources, your spouses job, dependents and expected tax deductions and credits.
TheIRS tax withholding estimatorcan help with figuring out the right withholding amount.
Once the bigger checks come in, start putting the extra money toward debt payments.
It involves reviewing food costs, lifestyle expenses and insurance needs to find areas to save.
Implement the Snowball Method
Cruze advised using the snowball method when paying down debts.
This means targeting your balances from the smallest to largest sizes to see progress early on.
According to Cruze, you should kill the accounts youve paid off.
That way, it’s possible for you to reduce the risk of ending up burdened with debt again.
More From GOBankingRates
Share This Article:
