Chris Hendrickson, Author of 5 Minute Debt Solution

[inderdaadherbst]

As far as "Getting out of debt" goes, if you are constantly spending your income to pay off debt, how do you still go about saving?

I inherited some money recently, should i spend it all on paying off my debt, or should i enjoy it, and continue to pay off my debt in installments?

How do I get out of the habit of spending money that i dont actually have, how do I discipline myself to stick to my budget?

thanks

[Hollywood7536]

@inderdaadherbst

Hi. For question 1, I typically give a formula of 20% to your debt and 10% to your savings from your GROSS income, this can vary depending on your personal situation.

[Hollywood7536]

@inderdaadherbst Question 2, I would not "spend" all your money on paying down debt, situations can vary and I don't know the details of your specific situation, but I would do something like this. Put at least 30% of the inheritance in Savings (with the ultimate goal of investing it),

[Hollywood7536]

@inderdaadherbst (cont) I would put 60% towards paying down your debt (the one(s) with highest interest rate) and then I would take 10% and go do something fun. Don't spend more than 10-20% of it because that is what is getting you in trouble in the first place!!