Debt Payoff Budget

Aggressive budget focused on eliminating debt fast.

When you are serious about eliminating debt, switch to a 50/20/30 budget where 30% goes to debt payments and savings. On $5,000/month, that is $1,500 dedicated to crushing debt. At this rate, you can eliminate $30,000 of debt in about 20 months. Once debt-free, redirect that $1,500 to investments and watch your net worth skyrocket.

Your Income

$

That is $60,000/year

$2,500/mo

$1,000/mo

$1,500/mo

Your Monthly Budget

Needs 50%
Wants 20%
Save 30%

Needs

$2,500

  • Housing (rent/mortgage)$1,375
  • Utilities$250
  • Groceries$375
  • Transportation$250
  • Insurance$125
  • Minimum debt payments$125

Wants

$1,000

  • Dining out$250
  • Entertainment & streaming$200
  • Shopping & clothes$200
  • Hobbies & fitness$150
  • Travel & vacations$150
  • Personal care$50

Savings & Debt

$1,500

  • Emergency fund$375
  • Retirement (401k/IRA)$525
  • Extra debt payments$300
  • Investments$225
  • Short-term goals$75

What Your Savings Could Grow To

Assuming 7% annual return on investments

Annual Savings

$18,000

In 5 Years

$107,389

In 10 Years

$259,627