Should you save money when in debt?

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Question: Should you save money if you still have debt?

A question I’m frequently asked by my readers is if they should build their nest egg or save money while they still have debt.  As peculiar as it may sound, usually the answer would be ‘yes’.  In most cases I recommend using 10 percent of your funds for debt repayment and 10 percent for your wealth accumulation, even if you are losing a few percentage points in interest.  I call this the 10/10 payoff.  The reason for this is psychological. If you’ve been struggling with debt for some time, it is important, emotionally, for you to see the growth of your wealth. If you’re not seeing your wealth increase, you will be less motivated and, ultimately, less likely to succeed.

I can best explain this principle by sharing a true story.  I once had a friend who weighed more than 350 pounds.  After years of struggling with his weight, he decided to do something about it once and for all.  He put himself on a remarkably intense and painful diet.  All he could eat was a foul-smelling protein goop four times a day.  He was miserable but he stuck to it.  After the first thirty days he had lost close to 50 lbs.  Although this was a tremendous success, to him it didn’t feel like one.  He still weighed more than 300 pounds. No one (outside those of us close to him) was congratulating him or telling him how good he looked.  Women weren’t giving him a second look.  He still needed the seat belt extender on his airplane travel. With all the hunger and pain he had endured and with no positive reinforcement to inspire him, he quit.  I’ll never forget the day he said to me, “C’mon, Rick.  Let’s go get some pizza.”

Whether you’ve fallen a hundred feet or seventy-five feet deep in a well, it’s still dark and cold. If you’re a hundred thousand dollars in debt and manage, through great sacrifice and hard work, to pay off fifty thousand dollars, life doesn’t really seem all that different as you’re still deep in debt. However, if you were to pay off twenty-five thousand dollars and had twenty-five thousand dollars in an investment account earning interest, you would feel different.  Success fuels success.  Lack of success fuels nothing.

There are two other reasons to build your nest egg as you pay off debt.  First, I’ve noticed that many people develop what I’ll call a debt metabolism.  This is how one woman explained it to me; 

“It seems we’ve always had fifty thousand dollars of debt.  No more, no less.  Then, when my mother died, we were left an inheritance of a little more than fifty thousand.  The first thing we did was to pay off all our debt.  But within six months we were right back to fifty thousand in debt.  I guess it’s what we were used to. If we had put the money aside or gradually paid off the debt I think we could have changed our habits.”

The second advantage to simultaneously saving and paying off your debt is that it will help train your new lifestyle. Once your debt is paid off, just apply the extra 10 percent to your savings and investments to accelerate your wealth accumulation.  America’s millionaires save, on an average, about 20% of their income, so, if you do this, you’ll be saving like a millionaire.

The only time I don’t recommend that you simultaneously build wealth as you pay off debt is if you are trapped in a ridiculously high interest rate and have no means of escape.  But even in this scenario I would recommend that you save a minimal 1% – 2% of your income in a wealth account in order to build a habit of saving and reward yourself with a small sampling of hope.

Richard Paul Evans is a #1 New York Times bestselling author and the founder of the 5 Lessons Institute.  ( His new book is called: The Five Lessons a Millionaire Taught Me for Women.  To order the book click one of the online retailers below:

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There’s an economic axis of evil taking shape right now, and the people in charge of our government are too stupid to acknowledge and deal with what’s happening. The U.S. dollar and the entire financial system are at stake, and, as Glenn Beck reveals on "Glenn TV" Wednesday, our enemies’ PUBLISHED plans to take the entire thing down.

While all of this is happening, our own leaders are making everything worse. We’ve got Nancy Pelosi risking an international incident, accelerating China’s plans to collapse us. And when Biden SHOULD be focusing on the security of our country, he’s instead preoccupied with controlling the weather with his Inflation "Reduction" Act.

Glenn exposes the TRUE numbers on what that bill will do to your family’s budget. Add to that, they’re more than doubling the IRS to make sure you feel the pain. And if you think they won’t come for you, look at what they just did to the former president of the United States. The DOJ and FBI just went after the political opponent of their boss, Joe Biden.

This is what they are focused on, and the threat to the dollar — and the entire financial system — isn’t even on their radar. Pain is coming for us, and they don’t care one bit.

Watch the full episode below:

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Speaking before signing the “PACT Act of 2022” on Wednesday morning, President Joe Biden claimed that his wonderful economic plan "is working" and that somehow July’s annual inflation rate of 8.5% was actually “zero.”

“I just want to say a number: zero. Today we received news that our economy had 0% inflation in the month of July,” Biden said during a ceremony in the East Room of the White House.

White House press secretary Karine Jean-Pierre dutifully echoed the president's not-at-all misleading claim:

The truth of the matter is that last month's inflation rate of 8.5% was a (small) step in the right direction, but only because it was lower than June's 41-year high of 9.1% — and the thing is, anyone who's graduated kindergarten knows it.

So, who do White House personnel think they're fooling? On the radio program Wednesday, Glenn Beck and producer Stu Burguiere broke down how the Biden administration came to this latest disingenuous conclusion about the economy, what the latest consumer price index actually shows, and why the inevitable Biden brag-fest will be unbearable.

Watch the video clip below. Can't watch? Download the podcast here.

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To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis, and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.

Glenn Beck: This is the ONLY endgame that makes sense for the FBI’s raid on Trump’s Mar-a-Lago home

(Left) Photo by James Devaney/GC Images (Right) Video screenshot

If you're celebrating this FBI raid on Mar-a-Lago, you have no idea how much this changes things. We don't do this in America. At least, we didn't. But the left cannot have Donald Trump be president again. His "America First" platform goes against everything they've been working for. So, what's their endgame here? On the radio program, Glenn Beck said there's really only one endgame that makes sense — and it should scare us all.

"If you are not for the destruction of America, you better pay attention quickly. This is a massive move," Glenn said of the Mar-a-Lago raid.

"Who has credibility on this? ... The right will believe Donald Trump, but nobody on the left, so you're not going to change any minds there. Do you think the right will believe the New York Times? MSNBC? NBC? CBS? Do you think we're going to believe the New York Times — the people who have been carrying water for the Biden crimes? The Clinton crimes? And ... I'm talking about her server and having her own State Department people go into a skiff, which is the top secret room, completely sealed off, going in and getting documents, cutting off 'top secret,' and then emailing them to her on her private server. And nothing? And now you're going to try to convince me [that] this has nothing to do with January 6?" he added.

"Remember the [allegations about] bank servers, [Trump] was pinging a bank? Untrue. Carter Page is a Russian spy? Untrue. Donald Trump is a Russian spy? ... Untrue. Collusion with Russia? Untrue. Ukraine, the perfect phone call? Not true. Not true. Wasn't a perfect phone call. Was not impeachable. The pee tape dossier? None of that was true. Here's why they can't have [Trump] as president of the United States. They can't have him as president of the United States because we are headed towards a completely new, all redesigned, non-capitalist, nonconstitutional Great Reset," Glenn argued. "They cannot have him be president because he is America first."

Glenn warned Americans that our federal government is accumulating massive power, case in point the 87,000 new IRS agents. "Coupled with the [IRS agents] they already have ... that's almost the size of our National Guard. Do you feel comfortable with that? Democrats? You don't think there's a possibility ... that someone ... might come in at some point and weaponize the IRS?"

He also warned that the FBI's raid on Donald Trump’s home has implications that stretch far beyond simple dislike for the former president. So what are they hoping to accomplish?

"What is the endgame? You make him into a martyr by throwing him into jail or killing him ... so you make him stronger. That doesn't make sense, why would they want that?" Glenn asked. "So, what is their endgame? The only one that makes sense to me, is to stop him at any cost, then lunatics will take to the streets, and then [the Democrats] will have evidence that the [right is] more dangerous than anyone could possibly imagine. Please, pray for your country."

Watch the video clip below to hear more from Glenn. Can't watch? Download the podcast here.

Want more from Glenn Beck?

To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis, and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.