So why take this approach instead of paying off all your debt as quickly as possible?
Because — simply put — life happens. In the occurrence of an unexpected event, like a medical emergency, a reduction of income, or something breaks that needs to be replaced, it’s a good idea to have a cash cushion that you can rely on. Typically, having a few thousand dollars in the bank that you can fall back on is a comfortable cushion.
It’s a balancing act when it comes to paying off debt and savings at the same time, but with the right plan in place, it’s an achievable goal.
And as with most financial plans, getting a strategy in place is just the beginning. Follow your plan and continuously evaluate and pivot based on your progress and what makes the most sense for your financial future.
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Financial advice for real people, by real people. You shouldn't need a degree to understand your money. Join Head of Education, Brittney Castro and Altruist mentors as they break down financial tips and strategies in a real way to help you finally understand how to achieve your financial goals faster.
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