Skip to player
Skip to main content
Skip to footer
Search
Connect
Watch fullscreen
Like
Comments
Bookmark
Share
Add to Playlist
Report
The must-try money hack to boost your net worth while crushing debt
The Street
Follow
4/2/2025
Here's the secret to maximizing your net worth while paying off debt.
Category
🥇
Sports
Transcript
Display full video transcript
00:00
What I have instructed my clients to do, which has worked really well, is gather anything
00:05
that's going to grow your net worth into this one category called Strive.
00:09
And so that includes the investments and savings, but it also includes paying down debt.
00:14
And so what that really helps people realize is that there is a trade-off between investing
00:18
and paying down debt.
00:19
But specifically, if you pay down your debt and you make sure that you do it early enough
00:25
and not let it linger forever, debt can become a short-term solution, not a long-term lifestyle.
00:29
And so I really strongly encourage people to bucket everything that grows your net worth
00:33
into that one same section of your budget so that you can see, well, maybe it is time
00:37
for me to pause on doing investing just in the short term in order to pay down this very
00:41
high-interest debt.
00:42
Or it might also indicate to us that we might need more savings.
00:45
In the book, I talk about having at least one month's worth of a cash flow cushion sitting
00:50
in your checking account.
00:51
What I found was that a lot of people get into credit card debt because they don't have
00:53
enough cash on hand.
00:55
And when they put it into a high-yield savings account or into a savings account, they almost
00:58
feel like they have to break glass to go get it.
01:00
And so they'll accrue stuff on the credit card.
01:02
So if you have one month's worth sitting in your checking account that helps you stop
01:06
living paycheck to paycheck, it reduces the likelihood that you'll get into credit card
01:10
debt.
01:11
And so building up that one month's worth of cash flow cushion helps you pay down debt
01:14
faster.
Recommended
0:50
|
Up next
A personal finance expert's blunt advice on paying down personal debt
The Street
3/25/2025
0:44
Suze Orman reveals the quickest way to erase debt
The Street
4/3/2025
1:38
The shocking ways an accountant can improve your finances
The Street
3/24/2025
0:55
How to maximize your tax refund this year
The Street
4/8/2025
0:29
The one-dollar rule: A personal finance hack for smarter spending
The Street
5/6/2025
0:44
Suze Orman issues stark warning on student loan debt
The Street
5/8/2025
2:10
Suze Orman offers blunt advice on crushing credit card debt
The Street
4/3/2025
1:04
Suze Orman’s top 3 financial habits everyone should follow
The Street
6/20/2025
2:34
How to financially grow up
The Street
11/18/2024
5:38
5 Personal Finance Hacks To Help You Invest
Entrepreneur
9/23/2019
2:11
Crypto tax rules every investor needs to know
The Street
4/9/2025
2:00
Dave Ramsey breaks down the simple steps to financial freedom
The Street
6/17/2025
0:22
How this woman erased $300K in debt and became a millionaire
The Street
3/15/2025
0:29
Three proven strategies to eliminate credit card debt fast
The Street
4/27/2025
1:00
Dave Ramsey reveals how to recession-proof your finances
The Street
4/29/2025
0:46
Tips for handling your credit card debt
The Street
3/6/2024
0:24
The biggest credit card mistakes to avoid
The Street
5/18/2025
0:47
This common credit card mistake is costing you more than you think
The Street
5/24/2025
0:21
Here’s the number one tip for growing your net worth
The Street
6/2/2025
0:53
The dollar rule: How to justify any purchase without the guilt
The Street
3/12/2025
0:26
Dave Ramsey sounds the alarm on this costly financial mistake
The Street
6/10/2025
1:31
How To Invest Your Money Effectively
Kiplinger
10/3/2024
1:04
Dave Ramsey Says Credit Scores Are Just 'I Love Debt Ratings' And Insists They Are In No Way An Indication Of Wealth
Benzinga
2/6/2024
5:22
Will Mamdani’s Proposed Millionaire Tax Save Or Sink New York City?
Forbes
today
0:49
Sam Altman Warns Users Not To Blindly Trust ChatGPT Despite Its Rising Fame
Benzinga
yesterday