MONEY MONDAY: Tips on paying down debt and saving

Money Monday

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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.”

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