Should You Save Even If You’re in Debt?
My opinion? Yes.
It may sound strange—why save when you already in debt? But here’s the truth: if you don’t set aside something for the future, you’ll always end up turning back to credit when emergencies come up. That means even more debt, more stress, and more interest piling up.
The interest you earn on savings won’t beat the interest you pay on debt. But the purpose of saving is to break the cycle. If a car repair, medical bill, or unexpected expense hits, you’ll have a cushion instead of swiping a card and paying more interest.
Pay Yourself First (Even if It’s Just $5)
I’d suggest putting your savings in an account you can’t get to right away. Something that takes a day or two to transfer. If it’s in the same bank as your checking, trust me—you’ll end up dipping into it. I made that mistake myself, and let’s just say… those savings didn’t last long.
What worked better for me was opening an online savings account. Not only did it give me a slightly higher interest rate, but the 2-day transfer window created a built-in pause before I could spend it. These days, yes, I could use Zelle to move money instantly—but I try my best not to.
During COVID, I even opened a second online account (with no Zelle option) just for travel. I put all my cash-back reward checks there, and eventually, that account fully paid for my family’s trip to Disney. If I had kept that money in my checking, trust me—it would’ve disappeared long before Disney.
But How Do You Save When You’re Overwhelmed With Bills?
I hear this a lot: “How can I save when I can barely pay my bills?”
Here’s where I suggest starting:
1. Breathe.
I know it sounds silly, but when you’re stressed, stop and breathe. It calms your mind so you can think clearly.
2. Write It Down.
List every bill, every expense, and your income. Seeing it on paper is powerful—you can’t fix what you don’t see.
3. Breathe Again.
Why again? Because step two can be an eye-opener. Many of us don’t realize how much we’re spending on autopilot. I once found I was paying for software I didn’t use anymore. It was $15 a month I didn't notice, that could have been $180 toward my travel fund instead.
I’ve had clients realize they were paying for 10 different TV subscriptions. Each one seemed cheap individually, but together, they were burning through $100+ a month—or over $1,200 a year!
4. Create a Strategy.
Don’t add new debt.
Cut or decrease where you can. Do you really need all 10 streaming services?
Know your priorities. Everyone’s “non-negotiable” is different. For me? My hair appointments stay, no matter what. But when money gets tight, I’ll cut back on the spa or travel or eating out, anything but the hair.
Get Support If You Need It
If you feel overwhelmed, don’t be afraid to ask for help. There are financial coaches and counselors who can help you build a plan. And please—swallow your pride, don’t let shame stop you. More people are in the same boat than you realize.
The Bottom Line
Yes, you should save even if you’re in debt. It’s not about the interest rate comparison—it’s about building a safety net so you don’t sink deeper into debt the next time life happens.
Start small. Pay yourself first. Protect your future while tackling your present.
So here’s my challenge to you: do you already have a savings account set up? Or is it time to start one today?
Not the one tied to your checking that you dip into the minute things get tight, but a true savings account that gives your money room to grow.
If not, today’s the perfect day to start—even with just $5. Saving while you’re in debt isn’t about perfection. It’s about progress, peace of mind, and creating a cushion for the future.
Drop a “yes” if you already have one—or “starting today” if you’re ready to open yours. I’d love to cheer you on!
