7 Moves to Pay Debt and Save Money at the Same Time
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1. Know How Much You Owe and Spend
You can’t fix your finances if you don’t know what’s broken.
So, grab a notebook or open a spreadsheet and face the numbers head-on.
Here’s what to focus on first:
List every debt. Include the balance, due date, and interest rate.
Track every expense. Even the small “just a coffee” ones count.
Add it all up. Seeing the total is the wake-up call you need.
👉 Here's How You'll Do It: Write down every bill and expense for one week. Yes, even snacks. to see where your money really goes.
Make It Easy: Consider a desk calculator notebook so you can jot numbers quickly without switching screens.
2. Set a Small Savings Goal First
Before you crush your debt, you need a tiny cushion to avoid sliding back.
Even saving $300–$500 gives you breathing room for life’s little surprises.
Here’s how to start fast:
Name your goal. Give it purpose. like “Mini Emergency Fund.”
Keep it separate. Don’t mix it with your main checking account.
Add a little often. Even $10 here and there adds up faster than you think.
👉 Here's How You'll Do It: Set up a separate savings account and transfer a small fixed amount weekly.
Make It Easy: Use a Betterment Cash Reserve Account to automate and grow your mini emergency fund safely.
3. Pay a Little More Than the Minimum on Debts
If you only pay the minimum, you’re giving your money away in interest.
Even a few extra dollars each month can speed up your payoff like magic.
Here’s how to do it smart:
Round up payments. Pay $55 instead of $50. It all counts.
Tackle one debt. Focus on the smallest balance for quick wins.
Celebrate milestones. Every paid-off debt deserves a mini victory.
👉 Here's How You'll Do It: Add an extra $10–$20 to your next payment and focus it on your smallest balance first.
4. Keep It Going with Easy Automation
If you want to stay consistent, let your bank do the heavy lifting.
Automation makes saving and paying bills feel effortless. No thinking required.
Here’s how to keep it rolling:
Auto-transfer savings. Have a small amount move automatically every payday.
Set up bill pay. Avoid missed payments and those annoying late fees.
Forget about it. Let your accounts run on autopilot while you focus on life.
👉 Here's How You'll Do It: Automate your savings and debt payments to happen right after payday.
5. Find Simple Ways to Spend Less
You don’t have to live like a monk to save money.
It’s all about trimming the small stuff that doesn’t add joy.
Here’s what to try this week:
Cut subscriptions. If you forgot it existed, it’s time to cancel.
Cook at home. Eating out adds up way faster than you think.
Delay purchases. Wait 24 hours before buying anything non-essential.
👉 Here's How You'll Do It: Go through last month’s transactions and cancel one expense that doesn’t make your life better.
Make It Easy: Consider a magnetic meal-planning whiteboard to plan home dinners and save on takeout.
6. Find Side Income to Boost Cash Flow
If saving feels impossible, it’s time to make more money.
Even an extra $100–$300 a month can change everything.
Here are easy ways to start:
Use your free time. Deliver groceries, walk dogs, or help neighbors move.
Sell stuff. Old gadgets and clothes can turn into quick cash.
Teach online. Turn your skills into a side income from home.
👉 Here's How You'll Do It: Pick one side hustle idea and commit to testing it this weekend. No overthinking.
Make It Easy: Try DoorDash or TaskRabbit to earn extra cash with flexible hours.
7. Avoid Taking on New Debt
Debt freedom only works if you stop digging.
Every new swipe adds months (or years) to your payoff timeline.
Here’s how to stay in control:
Hide your cards. Out of sight really means out of mind.
Use debit or cash. Keeps your spending real, not imaginary.
Say no politely. You don’t need to finance every “deal” that pops up.
👉 Here's How You'll Do It: Take your credit cards out of your wallet and use cash or debit for daily spending.
Make It Easy: Consider a cash envelope wallet to divide money into categories and track it visually.
Hey, I'm Lily! I'm a mom who's really good at two things: stretching a dollar and talking about stretching a dollar. I created Money Vice after one too many grocery trips where I watched my total climb and thought, "There's gotta be a better way." Spoiler: there is. Think of me as your money-savvy friend who's always got a tip (and coffee in hand).
