Why You Need Sinking Funds
Money Management

Why You Need Sinking Funds

Why You Need Sinking Funds

When I found Dave Ramsey about 3 years ago I was all about it and I loved that there were steps for me to follow. Fast forward a few years and I have definitely tweaked the system to fit my needs, but generally follow them. The scariest part for me was only having a $1,000 emergency fund for baby step #1. I mean, I live in New Jersey, a trip to get an oil change one time ended up costing me $1,000. The first thing I did was bump up my emergency fund to be $2,000, it just makes me feel so much better just in case something were to happen. Eventually I found sinking funds, too. This was actually life changing for my budget and my stress level.

What is a sinking fund?

I had no idea what a sinking fund was when I started this journey. I mean you heard about my car situation and literally blowing my entire emergency fund just on a trip to the mechanic, which never would have happened if I had a sinking fund. A sinking fund is when you set money aside each month for an upcoming expense. This is for things that you know are coming and have time to prepare for. By setting aside small amounts of money each month, the large expense doesn’t hit your budget as hard when the time comes.

How to start a sinking fund

This was tricky for me in the beginning. I knew it would be better for my budget in the long run to put small amounts aside for my upcoming expenses, but it was hard not putting that money to debt. However, the first time I actually used money from a sinking fund, it was a total game changer for me. In order to set up a sinking fund you need to figure out how much you are going to need and when you will need the money. For example, I know I’m going to need new tires and was told probably around the end of summer. I’m over estimating my tires to cost me $600 because I would rather have money left over and just put it towards debt after, then not have enough and scramble trying to find money. I started the sinking fund in February, so I have 7 months to save. I divide the total cost, $600, by the amount of months I have to save, 7 months, and I know I have to set aside $86 each month for my tire sinking fund. $86 is a lot easier than $600 in one month. Or, I save $3,000 for the summer when my income is not set, since I am a 10 month employee. I divide $3,000 over 10 months and put aside $300 each month. By the time summer comes around I have $3,000 in my account to use in case my income is lower than expected. At the end of the summer, I make a loan payment with whatever is left over.

Sinking funds have completely changed my finances because I no longer have to pull from my student loan extra payment when something major comes up. Now, my emergency fund is truly for emergencies and not just for big items that come up, like tires or brakes. How have sinking funds changed your budget?

Switching to Generic Brands
Money Management

Switching to Generic Brands

Switching to Generic Brands

I was always a die hard name brand girl for as long as I could remember. I’m not sure if it was because of my parents, or just I felt like it was what everyone did though. For some reason, if I was grocery shopping or shopping in the pharmacy, I felt like I had to buy the name brands. Then, I started getting my financial life in order and wanted to find all the ways to lower my monthly expenses. That’s when I realized how easily I could save money just by switching to the generic or store brands. So, I quickly made the switch and realized my life continued on as normal.

Saving Money with Generic Brands

If you are like me, I never used generic brands. I’m not sure why, but I always thought the quality wasn’t as good as the name brand products. I was completely mistaken though. I have pretty sensitive skin and I assumed the generic would cause my skin to get irritated, but that wasn’t the case. The generic brands are exactly like the name brands, but so much cheaper. Of course, for some people, it’s not going to work. But that comes with anything, even name brands. I also have found that I can get a lot better deals on the store name brands. I’m constantly finding buy one get one free on the generic and store brands, totally worth it!!

More Coupons on Generic Brands

I was very surprised to find that a lot of stores offer extra coupons when you buy their brand products. I don’t know why I found this surprising, the store is making more money by offering you that coupon! For example, I shop at Wegmans and they regularly offer a coupon for any Wegmans Organic purchase. I’m going to buy my organic groceries regardless, by buying the store brand it is usually cheaper and now I get to add an additional coupon. The savings are wonderful just by sticking to generic brands instead of the name brands.

Like I have recently been sharing, I’m all about finding ways to save money within my different areas of my budget. I tried tackling my entire budget in the beginning and totally failed. Once I started focusing on single categories, I was so much more successful. One way I have saved money in my grocery and toiletries budget is by switching to generic brands and this didn’t require any change to my life style. Have you switched to generic brands? Did you notice any difference?

Why You Need to Meal Prep
Money Management

Why You Need to Meal Prep

Why You Need to Meal Prep

Trying to tackle buying food can be quite the task. I’m just buying for my self and I find it challenging at times, so I can’t imagine what it is like for a family. When I started my debt free journey, my grocery spending was out of control, price wise and being just total junk. It was bad and I definitely needed to make over my entire grocery budget and what I bought. I decided to switch to organic and knew that it would increase my budget (but lower other budget categories, find out more here), so I had to find ways to save money in other ways. That’s when I found the wonderful world of meal prep and here’s why you need to also meal prep.

#1 Healthier

There is no doubt that when you meal prep you will eat healthier. Whenever I get home from a long day of work and side hustles, the absolute last thing I want to do is cook a meal. Before meal prepping, I’d end up eating whatever took the least amount of work to make, which usually meant junk. Once I had meals prepped, I’d just have to pop it in the microwave or oven and I was eating a well balanced, healthy meal with minimal work.

#2 Lower Grocery Budget

Of course, you’re going to save money if you meal prep in your grocery budget. I wrote a whole post just on lowering your grocery budget, but it is obvious that you would with meal prepping. When you meal prep, you no longer wander aimlessly around the store, but shop with a list of items you need for the meals you are going to prep. I personally go to Wegmans and through their app I can make my list, which also tells me where to find the item and organizes it in the order it is found in the store. This has seriously saved my budget because I go directly to those sections and don’t wander the store looking for what aisle everything is found in.

#3 Eat Out Less

This was huge for me because if I wasn’t throwing together some junk food for dinner, I was definitely stopping on my way home, or getting delivery. When you have all of your meals prepped at home, you’re going to eat them because you don’t want them to go bad. Once again, you’re going to save money by not eating out or ordering food by meal prepping.

#4 Save Time

Not only will you save money by meal prepping, but you will save so much time throughout the week. Of course, you’re going to need to spend some time making your meals, my day is Sunday. But when you’re making large amounts of meals it saves time then cooking each night. For example, I will cook a bunch of tofu that will last me a few nights on Sunday instead of cooking a small amount each night. I save time throughout the week by spending time cooking on Sundays.

When I learned about meal prepping and how to meal prep, it completely changed my life. I know this sounds a bit dramatic, but I was able to get a handle on my health, my money, and my time. It really is a wonderful way to help with a crazy schedule, get healthy, and save some serious cash. Do you meal prep? What is your opinion of meal prepping?

Homemade Cold Brew Coffee
DIY, Money Management

Homemade Cold Brew Coffee

Homemade Cold Brew Coffee

I strongly believe in focusing on one part of your budget at a time when you’re trying to cut expenses. When I first started this debt free journey, I tried to cut from my entire budget. Boy was this a total fail. I got too overwhelmed and felt deprived, so I would splurge on items not in my budget. It was terrible. Then, I started trimming smaller sections of my budget and was so much more successful. One area I needed to drastically cut was my spending on coffee. I was definitely that person that would stop at Starbucks or Dunkin’ on my way to work before I started paying off my debt. My first way to save money was to simply use the Keurig my parents had, which saved money, but I knew there were ways to do this even cheaper. That’s when I stumbled upon cold brew coffee and let me tell you, this has been life changing for me.

The first thing you will need to do is get a quality coffee blend, I recommend getting a flavored one, I find it tastes a lot better in the cold brew. I get an $8.00 organic one from Wegmans, I know I can save even more if I went for a cheaper one, but I buy organic due to food sensitivities. I’m able to get about 30 cups of coffee from this one bag, which is about 6 weeks for me. This amounts to about $0.26 per cup, which is huge savings compared to my old habits.

Once you have the coffee ground, combine 1 cup of coffee grounds with about 3 cups of water. I tend to just fill the rest of my mason jar with water and call it a day. Once it is combined, stir it with a wooden spoon until it is mixed and put the lid on. Let the jar sit on the counter for 12 hours.

After 12 hours you need to separate the coffee grounds from the coffee. I do this by placing a coffee filter in a funnel and then place that over a glass. There are many ways to do this, this is just how I do it. Once the coffee is strained, I put the coffee in a clean mason jar, this is your coffee concentrate. I keep this in the fridge during the work week taking from the concentrate each morning.

To make my cold brew coffee each morning, I take half a cup of the concentrate and half a cup of water and combine it with ice, almond milk and a bit of no sugar caramel sweetener. I stir it all together and enjoy! I have found this to be a great way to save money in my budget and a huge time saver for this teacher as I’m flying out the door! How do you save money on coffee?

6 Tips for 20-Somethings on a Debt Free Journey
Money Management

6 Tips for 20-Somethings on a Debt Free Journey

6 Tips for 20-Somethings on a Debt Free Journey

This post may contain affiliate links. Check out my Disclosure Policy for more information.

It can be hard being in your 20-somethings and on a debt free journey. Basically every time you get on social media someone is jet setting somewhere new, everyone is trying Orangetheory and SoulCycle, and you’ll find everyone at brunch on Sunday. It’s tough, especially when you’re trying to dig yourself out of debt. But, don’t give up, you can enjoy your 20s and still be on a debt free journey. Here are some frugal tips to follow for all 20-somethings.

Tip #1: Acknowledge your Sacrifices

Always, always, always acknowledge the sacrifices you are making for your debt free journey, especially if you’re a 20-something. You’re doing a lot to get yourself out of debt, so acknowledge that! You’re getting your financial life together very early on, and that’s something to celebrate. Being on a debt free journey is all about sacrifices now for a better future, but that doesn’t mean you need to live under a rock and do nothing. Remind yourself of the things you are giving up to help yourself out of debt. For me, that’s reminding myself that I’m living with my parents instead of in an apartment in a fun city.

Tip #2: Budget for Fun

It’s important to budget for the fun things you enjoy in your life. You might think if you’re on a debt free journey then you can’t budget for any fun, absolutely not!! You’re going to drive yourself crazy and probably end up spending money you don’t have, if you don’t budget for fun things. The important thing about getting out of debt is not adding any new debt. If you don’t plan for fun, then you’re more likely to put it on a card and spend money you don’t have. If it’s in the budget, then it’s okay! Plan for fun money so you don’t drive yourself crazy on this journey.

Tip #3 Sinking Funds

If you haven’t heard of sinking funds, you need to get on the band wagon ASAP. Sinking funds have been a total game changer for me and have allowed me to still enjoy my twenties while paying off my massive debt. Sinking funds are when you have a set amount you are saving for something in the future so you have the cash when you need it. This is how I was able to go to Punta Cana, San Francisco, and Florida during my debt free journey. I knew I wanted to go on these trips, so I started saving for them months in advance. When it came time for the trip, I had the cash ready and it didn’t take away from my snowball.

Tip #4 Happy Hour

Happy hour has become my best friend on this journey. Happy hour allows you to still go out and enjoy time with friends, but at a much lower price. This goes back to tip number two, make sure you budget for these types of things, if they bring you joy. For me, I enjoy attending happy hour on Fridays with my coworkers. It’s a great time to unwind and have fun outside of work and I probably wouldn’t be as sane without all the laughs.

Tip #5 Cut Spending for Necessities

Unfortunately things like toilet paper, shampoo, soap, and groceries have to be bought and there really is no way to get rid of these expenses. But there are ways to get creative and cut spending in this area. For me, I have moved to a more vegetarian lifestyle to lower my grocery budget, used coupons, used loyalty cards, and switched to generic brands. These switches aren’t going to make me rich, but they have all lowered my spending each month, which means I have more money at the end of the month to go to debt. Look at what you buy each month and see if there are ways to make switches to save money. One of the biggest ones for me was switching to baby wipes from make up removing wipes.

Tip # 6 Plan your Debt Free Journey

Make sure to plan for your journey and have a set date you want to be debt free. This can be tricky, but once you sit down and create a plan for yourself, it will be easier to stay on track throughout the process. My recommendation is to use undebt.it to create a plan for yourself. They make it super easy to put in all of your debts and choose the plan that works best for you. This way you will be able to see when you’re going to be debt free and this will keep you motivated when you’re tempted to go off budget.

The important part of being on a debt free journey is to not go into new debt and focusing on creating a better financial future for yourself. This doesn’t mean that you have to completely miss out on your twenties while you get yourself together. Make sure to plan, budget and keep enjoying your twenties, and then you can really enjoy your thirties! 🙂 What tips do you have for 20-somethings on a debt free journey?

Finding Time to Side Hustle
Money Management

Finding Time to Side Hustle

Finding Time to Side Hustle

Side hustling is a wonderful, wonderful thing, especially if you have some serious financial goals. A side hustle can completely change your life, if taken advantage of. When I first started teaching, I was so overwhelmed with my career that I never thought I’d be able to side hustle on top of my teaching. After a lot of effort and creative thinking, I have found time to side hustle enough that I live on that money and use my salary from teaching to pay off my debt. I never would have thought that I would be able to do this, so I put together my tips to find time to side hustle.

Choosing a Side Hustle

This is probably the most important step when finding time to side hustle. You need to find a side hustle that at least brings you some joy. If you’re somebody that doesn’t think they have any time to side hustle, you’re not going to want to find time for something you hate. Make your life a little easier and pick something you see yourself enjoying. Also, this makes it a lot easier to work your side hustle when you’re tired or stressed from your main job.

Find Your Free Time

You might look at your schedule originally and think there is absolutely no time for you to possibly make extra money. But, you do. Think of all the time you spend binging Netflix, I know cutting down on this a week freed up countless hours for me each week. Be realistic with yourself in the beginning. Look at your schedule and see when you are willing to sacrifice your time. Are you only willing to work during the week? Can you work before you begin your day at your day job? Can you only work evenings? In the beginning, I strictly worked Monday-Thursday and I only took on 1 family to tutor for. Then, I added some after school tutoring at school. I didn’t want to overwhelm myself at first and become too stressed for my teaching. See what you can realistically do and don’t put too much pressure on yourself to work a ton of hours in the beginning.

Schedule Your Side Hustle

Once you have found your free time, schedule your side hustle time and stick to it. Depending on your side hustle, this time might be scheduled for you. For example, I babysit and tutor for my side hustles, so these are decided between the parents and myself, my employer, or my school. Now that I have figured out what I can handle, I have a lot of different means of bringing in extra money. It is incredibly important to have a schedule and stick with it. If you are doing a side hustle that doesn’t have a schedule, it is even more important to have a schedule. For example, I recently started focusing more on my blog. This requires me to schedule time each week to work on it, or I simply won’t do it. It’s amazing how much more time you have when you actually schedule it out.

To Do List

This might sound silly to some people, but there is something truly amazing about to do lists. If you’re someone that uses to do lists, then you know exactly what I’m talking about. I make a to do list every Sunday for the things I want to get done that day. Sundays are my prep day for the week and my day to get ahead of things. When I don’t use a list, my day completely escapes me and nothing gets done other then a lot of binge watching New Girl or Friends. Once I have a list that I tell myself I have to finish that day, I am so much more organized and focused in my day. I do the same thing on Monday mornings when I get to work, but I create one for the week. A list creates more time because we are more efficient in our tasks that we need to complete, which then opens up more time for side hustles.

Adjust and Add More Side Hustles

As I got more comfortable with my career and my side hustles I started adding more to my week. Now I’ve created a great, busy schedule that works really well for me and allows me to bring in enough money in side hustles that I can live off it and then some. This didn’t happen right away and it’s important to not overwork yourself, that just leads to more problems. You need to figure out what it realistic for you and add more side hustle as you see fit. For me, I found that I can go to work earlier in the morning so that I can do more side hustles in the afternoon. Get creative about your schedule and see where you can make changes to make your time work for you.

It requires some creativity and definitely some sacrifices, but finding time to side hustle is totally realistic, if it’s something you want to do. For me, I am motivated by how much more I can pay down my debt with my side hustle income. This makes it so much easier for me to say, “Yes!” whenever I am texted or emailed to babysit or tutor. Also, I know I won’t be working these crazy hours forever, and that definitely makes it easier too. How do you find time to side hustle?

How I Save Money on Contacts
Money Management

How I Save Money on Contacts

How I Save Money on Contacts

When I was in grad school I started doing a lot of research on personal finance, budgeting, debt payoff, and all the other fun stuff that comes with personal finance. I wanted to create better spending habits, not just a quick fix to my situation. So, I decided to focus on different areas of my life one at a time. This way I hoped to make these habits last. I started with my grocery budget and how I was going to keep eating organic while cutting my spending. It was tough, but it was doable once I got creative. Then, I went on to my toiletries, and once again I found some creative solutions to save money in this area. The one area that I figured was easy was to save money on contacts, boy was I wrong. This took some research and definitely some poor choices in regards to my eye health.

My Original Plan to Save Money on Contacts

When I first started focusing on my budget and trying to trim it I was using monthly contact lenses because they were the cheapest when I originally started using contacts when I was in 8th grade. Yes, I kept doing the same thing for 12 years simply because that was what I was used to. My senior year on high school I ended up being allergic to the proteins in my eye, so I needed to start using hydrogen peroxide solution. This was obviously more expensive then basic lens cleaner. When I started on my debt free journey, one way I saved money was switching to the generic brand of the solution, it helped, but not enough.

I started getting frustrated by how much my contacts were for the monthly lenses plus my little science experiment I needed to complete each night to properly clean them. So, I made an extremely poor choice and started wearing my lenses for as long as possible. I’m talking like months wearing the same lenses, just cleaning them with the hydrogen peroxide each night. I figured I could still see with them, they weren’t ripped, so why throw them out? I did this for about 3 years and made a year supply of contacts last me those 3 years, talk about savings right!? It is true, I did save money, but what I didn’t know is that I was practically suffocating my eyes because the contacts break down at that monthly mark and no longer allow your eye to breath. I also was setting myself up for a greater risk for eye infections.

My New Plan to Save Money on Contacts

After 3 years of doing this I realized I needed to take better care of my eyes. I started researching and found a much better solution for myself. One of the most frustrating things about wearing monthlies is that no matter what, at that month mark, I had to throw them out. Even if I only wore them 15 days that month. I felt like I was throwing away money some months if I didn’t wear my contacts much. I finally realized that my best bet would be to switch to dailies and wear my glasses more. Even though the yearly cost is more than monthlies, I can stretch out my year supply and its still healthy for my eyes. For example, no matter what my monthly contacts are the same price for a year supply because I have to throw them out. Now that I have dailies, I can stretch my yearly supply by wearing my glasses. It’s also a great idea to check for rebates on contacts, you can basically find a rebate for any of them by doing a quick search. How do you save money on contacts?

Why I Switched to Income Based Repayment
Student Loans

Why I Switched to Income Based Repayment

Why I Switched to Income Based Repayment

This post may contain affiliate links. Check out my Disclosure Policy for more information.

When I created my debt free plan in 2015 when I had just started my journey, it took me awhile to figure out just what I was going to do with all of my different loans. Even though I was generally following Dave Ramsey’s principles, I was definitely going about it in my own way that made the most sense for my situation. It’s important to remember that your specific situation may not allow for following a specific way of doing things. The important thing to do is focusing on creating the plan that works best for you and sticking to that plan. For me, I knew I needed to switch to income based repayment for my federal loans and it might be a good strategy for you to use as well.

Switching to Income Based Repayment: Choosing a Strategy

It’s important to pick a strategy that works best for you when you are first beginning your journey. If you need help with this, check out my post of how to go about choosing a strategy. The reason why this is so critical is because switching to an income based repayment plan might not make a difference in your payoff. I chose to go with the avalanche method because my private loans were mostly very large with large interest rates. If you need help figuring that out, this tool is wonderful to see the different ways you could pay off your loans.

Switching to Income Based Repayment: Prioritizing Private Loans

For me, I knew I wanted to prioritize my private student loans over my federal loans. This is a personal choice I made based on many different reasons. For one, my federal loans came with some protections in the event I couldn’t pay them, something my private loans did not come with. Also, my parents cosigned my private loans and I didn’t want them to be hit with the burden of my student loans if I couldn’t pay them, which includes my death (YES, my private loans would still need to be repaid if I died, how terrible is that! Luckily, they have changed this policy in the last year or so). This meant that I wanted to put as much of my money to my private loans as possible, making a lower payment on my federal loans ideal.

For these reasons, I knew switching to an income based repayment plan was the better choice for me. This has allowed me to put more money towards my private, higher interest loans each month. It is important to know that no matter what my payment is technically (one year it was $30.85!) I always make sure to pay off my interest every month. It’s important to do this because the loan company will capitalize your interest at the end of the year and add it to your principal. Have you switched to income based repayment?

 

Student Loans Impacted my Credit
Student Loans

How Student Loans Impacted my Credit

Student Loans Impacted my Credit

When I graduated grad school in 2015 I had a plan in place to pay off my $200k in student loans. I had a teaching job lined up and planned to find some extra tutoring jobs to increase my income. I had just started really looking at my personal finance in the months leading up to graduation, started budgeting, created my plan, and started looking at my credit score. I always thought my credit score was my lifeline to doing anything in my future and I only assumed that with my crippling debt that my score would be horrendous. Boy was I wrong, my student loans impacted my credit, but in a way I never imagined.

Of course, my student loans did impact my score, they obviously come up, but they didn’t impact it the way I had thought they would. My assumption was that my credit score showed how much debt I had, so my score would be terrible. How could it not be terrible when I was 22 years old and had accumulated $200k in student loans? What I didn’t realize was that your credit score simply shows how good you are at managing all the debt you have accumulated, the amount you have doesn’t necessarily matter. For example, if you keep your credit usage under a certain percentage, you have a good score because it shows you are good at managing your debt. If you always make your payments on time, you have a good score because you are good at managing your debt. My score at 22 years old fell in the “good” range, which excited me because I assumed I could get it to excellent quickly and refinance my student loans.

Again, I was very wrong about my credit score and how it is used. Within one year my score fell within the excellent range, I was so excited to refinance my student loans with a lower interest rate. The time didn’t matter to me, I wanted the lower interest rate to apply more money to the principal each month. With my excellent score set I did the paperwork to apply to refinance my student loans. Originally I was “pre-qualified” for a wonderful interest rate of 5%, a HUGE improvement from my 8% loans I was dealing with. This was simply based on a soft credit pull, meaning it doesn’t impact my credit score, but they get my credit score number. So, based on my lovely “excellent” score, I was viewed as a “safe” borrower and was rewarded by a great interest rate. That is until they did the final hard credit pull to determine my definitive refinanced loan. I was quickly denied because my debt to income was too high. So even though I had an excellent credit score, partially due to making 100% on time payments, I was denied because I had too much debt.

This was a part of my debt free journey that I didn’t expect. I was making huge payments every month, well over the minimum and had my nice “excellent” credit score, but still couldn’t help myself pay off my debt quicker because I had too much of it. This is where the credit score doesn’t make sense. I stuck to my plan and have now paid off 4 of those private student loans and every time an account closes, my score drops briefly. So, as I’m lowering my debt, lowering my debt to income ratio, my score drops initially, followed by an increase. Do you check your credit score regularly? How has it impacted your debt free journey?

 

Debt Snowball or Avalanche
Student Loans

Debt Snowball or Avalanche?

Debt Snowball or Avalanche

This post may contain affiliate links. Check out my Disclosure Policy for more information.

This is something I really struggled with when I began my journey to financial freedom. When I first began I was really into Dave Ramsey and using his baby steps. It’s what started this whole thing for me. As I did more research and learned more about personal finance, I was stuck with trying to decide which method I should use to tackle my debt. There are pros and cons to each and you ultimately need to decide what is the best method for you. But, I hope this can help make your decision a little bit easier. There is also a wonderful tool you can use to figure out what the best method is for you and your debt free date, you can read a review about it here.

Debt Snowball

This is the method that Dave Ramsey always recommends, and it is a great method for tackling debt. This strategy involves listing your debts from smallest to largest amount. You focus on your smallest debt first throwing all of your extra money at that debt, the rest of your debts get just the minimum. This allows you to make traction on one account. Once you have paid off the first debt, then all the money you were putting to it goes to your next smallest debt. This continues until all debts are paid off. This allows you to experience quick wins in the beginning and motivates you to keep going once you get to the larger debts. If you are someone with consumer debt, I would definitely recommend this method because it will help you when you are first changing your habits. This is also beneficial if you don’t have a lot of debt because if you can get out of debt in 2 years or less, interest won’t really make a huge difference in the big picture of your debt payoff. The negative of this strategy is that if you have large debts with high interest rates that will take you a long time to pay off, then you will lose a lot to interest.

Debt Avalanche

The other strategy is the debt avalanche, which is very similar and follows the same system of the snowball method. The difference is that instead of listing your debt smallest to largest by amount, you list them largest to smallest by interest rate. Once you have your list, you focus on the debt with the highest interest rate first and everything else gets the minimum payment. When the first debt is paid off, you move onto the next highest interest rate. This is good for people that only have student loans and don’t necessarily need the motivation of paying off debts in the beginning. The biggest positive of this strategy is that you save money in the long run and is good for people that are going to need multiple years to pay off their debt. This allows you to save the most possible money during your debt payoff. The negative of this method is that you might not experience any debts being paid off for a little while if your biggest interest rate is your largest debt.

I personally use the debt avalanche method, which took me awhile to decide on. Ultimately, I knew it was going to take me many years to pay off my student loans of $201k and my sole motivator was paying them off fast and saving the most money in the process. Which debt payoff strategy do you use?