Managing Debt and Creating a Realistic Budget

This podcast episode focuses on the importance of managing debt and creating a realistic budget. The hosts emphasize that many people have various types of debt, such as student loans, and the pandemic has further impacted finances. The episode shares the story of Irena, who is struggling with debt and reduced income due to the pandemic. The expert, Rachel Cruz, advises Irena to create a monthly budget based on a zero-based budgeting method, where every dollar is assigned to a category. She recommends cutting up credit cards, focusing on debt repayment, and pausing retirement contributions for a few years. By following a disciplined approach, Irena can work towards paying off her debt, building an emergency fund, and eventually saving for retirement and other financial goals.