Ramsey Solutions recommends paying off all debt and building a fully funded emergency fund before you start investing.
Your income is your greatest wealth-building tool. It cannot work for you if it is tied up paying off debt. Before you invest, get out of debt. Also build a fully funded emergency fund first.
Get Gazelle Intense
Most people can pay off their debt in 18 to 24 months with focused effort. That means:
- Creating and sticking to a budget
- Picking up extra work
- Cutting unnecessary expenses
- Selling items you no longer need
- Staying focused on your goal
This focused approach is called Gazelle Intensity.
Put Your Full Income to Work
Once you are debt-free, your whole income works for you. It no longer goes toward paying the bank. That is when you can invest consistently. Compound growth will build your wealth over time.