Paying Down Debt Fast: Why The Debt Snowball is the Superior Method

If you’re reading this post, you’re likely sitting pretty on some consumer debt. Or maybe you don’t have credit card debt, but you do have a car payment or student loans that are keeping you awake at night. This post will delve into a couple different repayment methods (e.g. the debt snowball vs. the debt avalanche) and discuss the psychology behind both of them so you can pick the method that works for you.

The Emergency Fund: What Is It and Why Should I Have One?

It’s not a matter of if an emergency will happen, but when. Murphy’s law (if something can go wrong, it will) will strike. Instead of taking on additional debt to be able to swing these expected, yet unexpected events, an emergency fund can help see you through these stresses. You can build this “buffer” from your budget by either reducing your discretionary expenses or increasing your income.

An emergency fund is money you have set aside in a savings account to help you cover those emergency situations that happen in life.

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