Vivian Tu breaks down the S.T.R.I.P. Method for people with debt and no savings. Start with an emergency fund to stop the bleeding, then attack your highest-interest debt while paying minimums elsewhere, and begin retirement savings now even if it feels far away.
I really don't have an emergency fund. I really don't have much savings. I don't have any investments and I'm in debt. How can they get back to a healthy place? What are practical steps they can do? Yeah, this is my youy Rich BFF Strip Method. So S stands for savings. It's so important to get that emergency fund first. You break your leg, something bad happens to you, you're going to need it. And if you don't have it, you're going to get worse into debt. T stands for total debt. Not all debt is created equal. So what you do is you rank your debt from highest to lowest interest rate, and you pay it down in that order. You pay off the minimum balance of every single account. On the higher one first. So you pay off the minimum balance on everything. Okay, gotcha. But any money you have left over to pay down debt, you put towards the highest interest rate. The highest first. Yes. R stands for retirement. I know, you know, especially my audience, so many people are young and they're like, They're not thinking about retirement. They're like, it's 40 years away, it's 30 years away. It's like, millennial, Gen Z. It will be here before you know it.
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