Making payments for things you bought in your past is like chaining weights to your ankle. You can’t invest in the future when you’re locked up in debt. A budget helps you free up your income fast.
![Woman using EveryDollar on her laptop computer](png/option-1-desktop-2.png)
Budget Your Way to Zero Debt
No matter your age, your profession or your income, sticking to a monthly budget is hands down the (not-so) secret tool to paying off debt fast and building wealth. It helps you manage where every dollar of your income is going. Below are your next steps.
List Out Your Debt
List all your monthly expenses including debt and loan payments. You’ll need this handy for step 2.
![Stack of money owed to people](png/step-9.png)
![A smartphone with the EveryDollar app on screen](png/step-10.png)
Create Your Free Budget
Forget complicated spreadsheets. Here’s an app that makes things easy for you and it’s free—the EveryDollar budget app. Once you download the app, you’ll plug in your expenses (from step 1) and the app does all the calculations for you.
Tackle Your Debt
Now, it’s time to take back your money! You’ll start attacking debt from the smallest to the largest until all debt is paid off. You’re on your way to no more debt payments—ever!
![A smartphone with the EveryDollar app on screen that shows "Debt Paid" and an illustration of the debt snowball](png/step-11.png)
![A smartphone with the EveryDollar app on screen that shows remaining income and says "Extra goes to the smallest debt"](png/step-12.png)
Find More Money
Once you start budgeting, you may find extra money available to put toward paying off your debt.
EveryDollar Budget App Benefits
Let’s address the elephant in the room—yes, the budgeting app is free. Really. And best of all, a budget puts you in charge of your money. Goodbye, money stress. Hello, money goals!
![EveryDollar free features: Create monthly budgets, Manually track transactions, Customize items and transactions, Sync budget data across all devices, Set up sinking funds, Split transactions between items, Set due dates, Take your budget with you on the go, Help pay off your debt, Did we mention it’s free?](png/everydollar-free-features-mobile.png)
Save $1,000 for Your Starter Emergency Fund
Your starter emergency fund of $1,000 (Baby Step 1) will cover an unexpected life event you can't plan for. Cash-flowing your emergency keeps you from digging a deeper hole while you’re budgeting your way out of debt!
The Debt Snowball Method
Using what we call the debt snowball method (Baby Step 2), you’ll pay off your smallest debt first while paying minimum payments on the rest. Once the smallest debt is paid off, roll that payment toward the next smallest debt. Repeat like a snowball that’s rolling downhill.