Assalamu Alaikum girlie 💐

We’re bringing a little If I Were You energy to the newsletter today.

Because a common question I get is:

“Should I focus on saving or pay off debt first?”

And the short answer is... it depends.

So here’s my unsolicited but necessary advice. Not personalized financial advice, of course, just what I’d do if I were you - with a dash of real-world logic and a whole lot of financial care.😉 

Let’s go.

Step One: Build a Lean Emergency Fund

Before you even look at your debt balances, get a few thousand dollars saved.

Think of this as your “I’m not about to swipe my credit card for a flat tire” fund.

You don’t need a full-blown six month stash yet. What you need is breathing room.

Here’s how I’d think about it:

• Bare bones expenses = the stuff you need to survive. Rent, groceries, transportation. And no - restaurants, vacations, or pilates don’t count.

• Let’s say that adds up to $2,000 a month. Multiply that by 1 or 1.5.

• You now have a goal: $2,000 to $3,000 in a lean emergency fund.

You can get there faster than you think, especially if you lock in, reduce lifestyle creep, and sell some stuff. It’s not forever. It’s a buffer to stop debt from getting worse.

Step Two: Pay Off That Debt Like You Mean It

Once that lean savings is in place, it’s go time.

If it were me, I’d throw everything extra at the debt. Your side hustle money, that $45 you almost spent on candles, even your tax refund. All of it.

Why? Because interest charges don’t care how tired you are. And the longer you wait, the more it costs you.

You don’t need to wait until you’re “fully secure” to tackle debt. The lean fund protects you from falling backwards. Now it’s time to move forward.

Step Three: Circle Back and Bulk Up Your Savings

After the worst of your debt is behind you, beef up that emergency fund like your future depends on it. Because it does.

Aim for 3 to 6 months of expenses based on your unique situation:

• Got kids or dependents? Lean toward 6 months.

• Work in commission or freelance? Give yourself more cushion.

• Single income household? Add a little extra.

• Dual income and stable jobs? You might be okay with 3 months, but still stay vigilant.

• Hate taking risks? Build a bigger fund. That’s self-care.

It’s all about tailoring your savings to you.

Bonus: Use This Thought Process to Find Your Number

Some folks just want survival-level savings. Others want a little cushion for things like subscriptions and Uber Eats. Neither is wrong. It’s about staying honest with yourself.

If you’d want to maintain a bit of comfort even during a job loss, then add that to your monthly estimate. Multiply accordingly. And boom - that’s your real number.

Some people even save for a full year of expenses. If that’s your vibe, go for it. But don’t let the pressure keep you from starting. The goal is progress, not perfection.

Want More Guidance Like This?

This is exactly the kind of thing we break down inside my new course, Master Your Money. No gimmicks, no jargon olympics- just a clear, practical roadmap for saving, budgeting, paying off debt, and investing with confidence (and a lil’ bit of flair, obviously).

Ready to take action?

Talk soon,

Fatimah💎

Founder, Finance Girlie

P.S. For guidance that’s tailored to your exact situation, I always recommend working with a licensed professional who can support you directly.