pay off debt or emergency fund first

We have reviewed the Pay Off Debt Or Emergency Fund First tips on this page for your satisfaction. You can browse the page for how to pay off debt and save money at the same time. If you want the how much to save before paying off debt guide, then this post is most suited for you.

Debt in any form can be overwhelming, but especially so when it interferes with your ability to build up your savings. This situation begs the essential question: Should you save money and put off repaying your debt or should you pay down the debt and wait to begin saving?

Luckily, there are winning strategies for tackling debt and savings simultaneously. The goal is to find a balance where you can become debt-free and still sleep soundly knowing you have some money socked away.

Pay Off Debt Or Emergency Fund First

how to pay off debt and save money at the same time

First, create an emergency fund

Though you may want to pay your debts as soon as possible, it’s important to prioritize emergency savings—even a small amount—that you can use in case an unexpected expense arises. A sudden ER visit or a spouse losing their job can throw a significant wrench into your financial plan. Without designated savings to pull from during such a crisis, you may feel the need to rely on high-interest credit cards or personal loans to cover sudden costs. However, doing so will only compound your debt and make the overall problem worse.

It’s generally a good idea to have six months’ worth of expenses saved in an emergency fund, but this may not be realistic if you are also dealing with debt or otherwise struggling financially. If you’re having difficulty saving at the recommended level, aim to save three months’ worth of expenses instead. Having at least some money set aside for emergencies is better than nothing, and you can always focus on building savings again once you’ve lowered your debt.

As you begin putting away money for an emergency fund, open a high-interest savings account so your money can grow when you pivot to focus on paying down your debt. While you continue to build your emergency fund, it’s also important to make at least the minimum payments on your debts to prevent late fees and potential damage to your credit scores.

Next, focus on debt repayment

It’s important to note that your individual debt repayment strategy will vary based on what type of debt you have. If you primarily have student loans, for example, you may be able to look into deferment, forbearance or loan forgiveness through your loan provider. If you are mostly dealing with credit card debt, these solutions will not be available.

Regardless of what kind of debt you owe, there are two common strategies for repayment: the snowball method and the avalanche method. Both will ultimately help you reach debt-free living but in slightly different ways.

The snowball method consists of listing your debts by total amount and paying off the smallest ones first, slowly working your way up to the most expensive. This strategy is more focused on the psychological benefits of paying off debt. Many people find that the satisfaction you feel when paying small amounts first is highly motivational and helps lessen the emotional burden of debt.

With the avalanche method, you rank your loans based on interest rates, rather than by the total dollar amount. Then you focus on paying off the balances with the highest interest rates first, while continuing to pay the minimum each month on all other loans. This can be particularly helpful if you have credit card debt in addition to student loans or other types of loans, as interest rates are typically higher on credit card accounts.

Whichever strategy you choose, try to make payments beyond the minimum each month. One simple trick is to earmark any unexpected money—maybe a bonus or a birthday gift from a family member—for debt payments. This also works when you spend less on groceries than you anticipated or otherwise have extra money in your monthly budget.

how much to save before paying off debt

The problem for many Americans is that their debts are so significant compared to their monthly income that it will take many years to pay the balance down to zero. While it might be tempting to simply postpone saving while you’re paying off debts, that often isn’t a realistic option. Even families with high debt want to be able to purchase a home, have a child, pay for college or provide support for ailing loved ones — and that requires substantial savings.

The key, then, is to find the balance that works for you and your family, agree on a plan and stick with it. Our recommendation is to prioritize paying down significant debt while making small contributions to your savings. Once you’ve paid off your debt, you can then more aggressively build your savings by contributing the full amount you were previously paying each month toward debt.

BEST SITES LIKE ALIEXPRESS FOR ONLINE SHOPPING

AliExpress is a massively popular Chinese online retail service owned by Alibaba Group. It was launched in 2010 and hasn’t stopped its journey to becoming the ‘biggest online marketplace of the world‘ ever-since. AliExpress stands toe-to-toe even with Amazon in terms of buyers worldwide. It offers wholesale goods at direct-to-consumer prices from Chinese sellers.

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It also works as a great dropshipping model for a lot of e-commerce entrepreneurs. Along with a lot of good sides, AliExpress has some cons as well. The biggest problem is the shipping time of AliExpress orders, which is pretty long considering the goods come from China. Also, some orders can be very expensive after shipping charges and taxes.

So, it is a good thing to have some AliExpress alternatives whenever you don’t like its services. That’s why we are telling you about 21 best sites like AliExpress. Some of these websites offer cheaper prices and faster shipping on certain products. And, you can also use them to maintain a nice profit margin for your dropshipping business.

1. LIGHTINTHEBOX

LightInTheBox is the perfect AliExpress alternative as it is also a Chinese e-Store. It sells hot and trending products across the globe. Their products range from phone and electronics to fashion, jewelry, shoes, bags, and many other items. You can find almost anything here at a very cheap price.

The delivery time of LightInTheBox is also similar to AliExpress as their warehouses are located only in China. But, you may get a faster shipping time due to having fewer orders to ship. You can pay for your orders with PayPal, Western Union, or your credit card.

2. WISH

Wish is a widely popular online marketplace where you can buy almost anything. From clothing to footwear, electronics, healthcare items, and many more things, you can get them all for an incredibly cheap price. They are also known to offer great deals and coupons to their new customers.

Their shipping time is also faster than AliExpress as their products come from sellers located in small countries. Wish also provides an advanced rating system that is very helpful for both the consumers as well as sellers. It helps promote good ones.

3. OVERSTOCK

Overstock is a US-based online marketplace. It makes profit by selling wholesale products at a highly cheap price tag. A major portion of their stock is comprised of overstock from the major retailers or their seconds. You can find some really amusing deals here. The shipping time will also be lower as compared to the Chinese marketplaces. You can get your items within a week.

The product range of Overstock is incredible. You can find everything such as clothing, decor, kitchen appliances, and many more items. You can even find furniture and other big home items. So, you can use to fill your house with great stuff at a reduced price.

4. DEALEXTREME (DX)

DealeXtreme, more popularly known as DX, is an amazing online marketplace. The website works in a very similar manner as ‘Wish’ and sells cheap products coming directly from sellers. It has partnered with many small businesses and sells its products to a wide base of audience.

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The shipping time is a problem with DX also because their warehouses are located in China. Apart from this, you can get some really worthy deals on DX. You should always keep an eye on their clearance sales for the best prices.

5. GEARBEST

Gearbest is the perfect AliExpress alternative if you are looking to shop for the latest gadgets or electronic devices. It works with over 5000 Chinese brands and top suppliers to deliver the best products. It has products from top Chinese companies such as Xiaomi, Huawei, Lenovo, and many others. But, it isn’t just an electronic store.

You can also find a massive range of other products as well. The prices available on GearBest are reduced, and you can even reduce them with the available coupons. They also have warehouses in multiple countries. So, you can get faster shipping from the local warehouse.

6. BANGGOOD

BangGood is another Chinese e-commerce platform that provides worldwide shipping of cheap goods. You can find almost anything on this website, from clothing to electronics, and even home items. The prices available are marked down from their original prices. You can also get amazing deals during special clearance sales.

BangGood provides a free $20 coupon to every new user. The shipping time for BangGood orders is faster than AliExpress for certain products. However, the regular shipping time is similar.

7. CHINABRANDS

ChinaBrands is a widely popular Chinese e-Store where you can buy products at wholesale prices. You can find almost anything on this website at a highly affordable price. Their shipping prices are also low but you will get a long shipping time. It is the perfect website for buyers who want the lowest prices but can wait for their orders for at least a month.

Most of the ChinaBrands sellers run their factories from China, and their warehouses are located there only. This is the reason for the considerably long shipping time.

8. BONANZA

Bonanza is a unique American online marketplace where you can find a great range of products. They have over 20 million items from more than 50,000 sellers. It is a growing e-commerce store where even you can sell your items. It is a preferred platform by more than 20,000 entrepreneurial sellers. You can find some really amazing handcrafted items and collectibles here.

For people looking to shop regular items, this store may disappoint you a little. The prices of some items may be a little higher than some Chinese stores. But, the quality provided will be worth it.

21 ALIEXPRESS ALTERNATIVE STORES

Here are 21 AliExpress Alternatives that you can use to shop online.

  1. LightInTheBox
  2. Wish
  3. Overstock
  4. DealXtreme (DX)
  5. GearBest
  6. BangGood
  7. ChinaBrands
  8. Bonanza
  9. DHGate
  10. TinyDeal
  11. Target
  12. MiniInTheBox
  13. GeekBuying
  14. Jet
  15. TomTop
  16. Target
  17. MadeInChina
  18. American Greenwood
  19. Walmart
  20. eBay
  21. Amazon

FINAL TAKE

AliExpress is amazing but it is always good to have options when you are shopping. So, these are the 21 best sites like AliExpress. If you ever feel like you should look somewhere else, these are some stores that you should visit. You can also use these for your dropshipping business if you are an aspiring entrepreneur. Make sure you have a solid plan before beginning.

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