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Save or pay debts? It is a difficult decision and one that many of you seem to be struggling with on a daily basis. However, saving is extremely important if you want to enjoy good financial health, to be protected against the economic unforeseen that may arise.

But, sleeping with a clear conscience by not having debts, it is also.

“In a society like the current one, in which we are constantly encouraged to buy things and spend money, in which access to credit is too easy, the possibility of over-indebtedness and living above our means is always present”


How can you pay off debts and save at the same time?

1. The first step is to make a monthly budget. In this way, you will know how much money you can work with once you pay living expenses and bills. From there, you can have a balance that will allow you to know with certainty what are the debts and obligations both (fixed and variable) and how much money you can and should save.

Stop additional debts and expenses. Without a doubt, it is super important not to acquire more debt than you already have. The more debts you incur, the less money you will have from your payroll to save and, you will continue to pay more in interest. This is something you should totally avoid!


2. “Check your ant expenses and surplus expenses that are preventing you from having a greater capital, especially check the daily purchases that are available or leisure purchases; eliminating these expenses you will see an immediate increase in your monthly liquidity ”,

3. Short terms mean paying less interest. The key to reducing the term of your debt is to calculate your debt capacity. The longer your term is extended, the more money you will be paying in interest to the bank, and the less you will have left to save.


4. Use the Avalanche Method. This method is super practical for many, and consists of paying debts from highest to lowest. Then you could pay off the debts in a more optimal way. However, you will not see that you get rid of different debts as quickly as in the snowball method.

5. Use the Snowball Method. The method is based on paying the smallest debts before the largest ones. The great secret of this method is that the money that you stop paying when you eliminate the first debt, you will use it to eliminate the next debt and, so on until you are debt free.


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In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.