Question:
❓Which should come first—saving or paying off debt?
A) Throw every extra dollar at the debt
B) Build a full year of savings first
C) Start with one month of expenses in savings, then tackle high-interest debt
D) Split money evenly between everything
Answer:
✅ C) Start with one month of expenses in savings, then tackle high-interest debt
Start with about one month of expenses in savings, then attack high-interest debt—that order keeps you from reaching for the card again the next time life happens.
After the cushion, pay down anything with a high rate (about 8% or more) while keeping minimums on lower-rate balances. Here’s why the other moves fall short:
- Throw every dollar at the debt: without a cushion, the next surprise bill goes right back on the card—you spin your wheels.
- Build a full year of savings first: too slow; you pay a lot of interest while you wait.
- Split money evenly: feels balanced, but it waters down progress on both.
Build the one-month buffer, kill the high-interest debt, then grow your emergency fund and start investing with confidence.
Learn exactly where each dollar goes first inside The World Changers Network.
