– If I have credit card debt, where does that come out
of the 50/30/20 rule? So, for those of you who aren’t familiar, the 50/30/20 rule addresses
your take-home pay, and how it should be broken up. So 50% typically is for needs. 30% goes to fun. And the 20% is for future you. Where does the credit card debt come out of? Everywhere. Credit card debt is super expensive, it eats away at your wealth, it eats away at your ability
to have a great future. And so I would take it
across the whole darn thing, and work as hard as you can to get it paid down. Transfer it if you can to
a 0% interest rate card, so you get the payment levels down. Then be very disciplined about taking that and paying it down as quickly as you can. Because until you are,
if you’re investing and you’ve got a credit card debt, it can mean rather than moving forward, you’re moving backwards.