MONEY MONDAY: Tips on paying down debt and saving

Money Monday


LANSING, Mich. (WLNS)—On this week’s Money Monday segment we’re here with some tips about paying-off debt, and saving cash in your wallet at the same time.

Lynn Richardson’s a financial expert and an author of “Get your money back: Tax deductions you never knew about.” Richardson says many people are struggling with debt right now. However, she has a rule to help people get their finances in order.

The rule is called the “10-10-30-50 rule,” and Richardson claims it works if you follow it properly.

“The first 10% of every dollar you get you tithe, donate or give, maybe to your church and the next 10% you save for a rainy day, for retirement. For that emergency fund,” Richardson said. “The next 30% is cash on a separate debit card for incidentals like grocery, gas, hair, nails, if it doesn’t fit, get rid of it. The remaining 50% for your bills. If you don’t have enough, you have to subtract, maybe get a cheaper house, cheaper car or make that kid out of private school tuition so that’s how you take a look at that.”

The holidays are nearby which means money could be tight for many people. Richardson reccomends a strategy called, ‘santa side hustle.’

“So we want to use our profession. If you are a nurse, then maybe you want to do some home health care,” Richardson stated. “Teacher, then you want to tutor. You want Toake what you do and turn it into a business. You also want to look for a part-time job. You want to get more work in the field that you’re in and then you can also look for seasonal employment.”

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Michigan Headlines

More Michigan

StormTracker 6 Radar