Should you save money when in debt?


  - Buy from Amazon 


- Buy from Barnes and Noble

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.  (5Lessons.com) 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:

- Amazon


- Barnes & Noble

Everything comes down to the two Senate runoffs in Georgia. If we lose both races, we lose the country. Democrats know this and are pouring in millions to usher in a Marxist agenda.

As the Left tries to hide how radical the two candidates really are, Glenn takes us inside the Democrat war room to expose the wolf in pastor's clothing, Raphael Warnock, and America's Justin Trudeau, Jon Ossoff. Socialism, the Green New Deal, and "defund the police" are all on the table. And Glenn warns of what's to come if conservatives don't activate: Chuck Schumer will weaponize the Senate, and the radical Left will launch an all-out assault to ravage the Constitution.

Watch the full special below:

The election and its aftermath are the most important stories in America. That's why we're offering our most timely discount ever: $30 off a one-year subscription to BlazeTV with code "GLENN." With BlazeTV, you get the unvarnished truth from the most pro-America network in the country, free from Big Tech and MSM censors.

Sen. Ted Cruz (R-Texas) joined the "Glenn Beck Radio Program" to explain how mail-in ballots are typically disqualified during recounts at a far higher rate than in-person, Election Day ballots, and why this is "good news" for President Donald Trump's legal battle over the election.

"One of the things that gives the greatest cause for optimism is, this election ... there's a pretty marked disparity in terms of how the votes were distributed. On Election Day, with in-person voting, Donald Trump won a significant majority of the votes cast on in-person voting on Election Day. Of mail-in voting, Joe Biden won a significant majority of the votes cast early on mail-in voting," Cruz explained.

"Now, here's the good news: If you look historically to recounts, if you look historically to election litigation, the votes cast in person on Election Day tend to stand. It's sort of hard to screw that up. Those votes are generally legal, and they're not set aside. Mail-in votes historically have a much higher rate of rejection … when they're examined, there are a whole series of legal requirements that vary state by state, but mail-in votes consistently have a higher rate of rejection, which suggests that as these votes begin being examined and subjected to scrutiny, that you're going to see Joe Biden's vote tallies go down. That's a good thing," he added. "The challenge is, for President Trump to prevail, he's got to run the table. He's got to win, not just in one state but in several states. That makes it a lot harder to prevail in the litigation. I hope that he does so, but it is a real challenge and we shouldn't try to convince ourselves otherwise."

Watch the video clip below to catch more of the conversation:

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.

Subscribe to BlazeTV today with our BEST DEAL EVER for $30 off with promo code GLENN.

Fox News senior meteorologist Janice Dean is perhaps even more disgusted with New York Gov. Andrew Cuomo (D) for his coronavirus response than BlazeTV's Stu Burguiere (read what Stu has to say on the subject here), and for a good reason.

She lost both of her in-laws to COVID-19 in New York's nursing homes after Gov. Cuomo's infamous nursing home mandate, which Cuomo has since had scrubbed from the state's website and blamed everyone from the New York Post to nursing care workers to (every leftist's favorite scapegoat) President Donald Trump.

Janice joined Glenn and Stu on the "Glenn Beck Radio Program" Tuesday to ask why mainstream media is not holding Gov. Cuomo — who recently published a book about his leadership during the COVID-19 pandemic — accountable?

"I'm vocal because I have not seen the mainstream media ask these questions or demand accountability of their leaders. [Cuomo] really has been ruling with an iron fist, and every time he does get asked a question, he blames everybody else except the person that signed that order," Janice said.

"In my mind, he's profiting off the over 30 thousand New Yorkers, including my in-laws, that died by publishing a book on 'leadership' of New York," she added. "His order has helped kill thousands of relatives of New York state. And this is not political, Glenn. This is not about Republican or Democrat. My in-laws were registered Democrats. This is not about politics. This is about accountability for something that went wrong, and it's because of your [Cuomo's] leadership that we're put into this situation."

Watch the video excerpt from the show below:

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.

As America grows divided and afraid to disagree with the Democrats' woke plan for America, Megyn Kelly is ready to fight back for the truth. For nearly two decades, she navigated the volatile and broken world of the media. But as America leans on independent voices more than ever, she's breaking new ground with "The Megyn Kelly Show."

She joined the latest Glenn Beck Podcast to break down what's coming next after the election: Black Lives Matter is mainstream, leftists are making lists of Trump supporters, and the Hunter Biden scandal is on the back burner.

Megyn and Glenn reminisce about their cable news days (including her infamous run-in with then-presidential candidate Donald Trump) and to look into the chaotic and shady world of journalism and the growing entitlement it's bred. For example, many conservatives have been shocked by how Fox News handled the election.

Megyn defended Fox News, saying she believes Fox News' mission "is a good one," but also didn't hold back on hosts like Neil Cavuto, who cut off a White House briefing to fact check it — something she never would have done, even while covering President Obama.

Megyn also shared this insightful takeaway from her time at NBC: "Jane Fonda was an ass."

Watch the full podcast here:

Want to listen to more Glenn Beck podcasts?

Subscribe to Glenn Beck's channel on YouTube for FREE access to more of his masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, or subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.