Culture

Travel

Milestones

Overview

Fraud

Financial Pathways

Take a new approach to managing credit, savings and making smarter financial choices with expert advice from Life and Money by Citi.

Money

Well-being

Credit Cards

Banking

Lending

Investing

Citigold®

Citi Financial Pathways

Around the world, Citi has strategic locations where our employees go to work each day to support our core businesses and drive solutions for our clients. 

Products and Services

NavBar

Home

FooterNav

<p>Shopping wisely and making smart spending decisions isn't exactly easy in the best of times, and during times of inflation, it's particularly challenging. But regardless of the economic climate you're in, finding ways to save for your retirement is always worthwhile — it may just take some behavior-shifting.</p><p>Right now, signs are pointing to economic recovery. Inflation, the term that describes the increase of goods and prices rising all at once, is currently hovering around 4%, according to the U.S. Bureau of Labor Statistics — it's eased considerably since the summer of 2022 when it peaked at 9.1%, though rents and mortgages are still relatively high. <a name="_Hlk139981363"></a></p><p>If you're struggling with recent price hikes, you may be tempted to cut back contributions to your 401(k) or to stop putting money into your retirement altogether, but that may not be the best idea. After all, saving less may just make money tighter when you really need that retirement fund. Whether you're feeling overwhelmed by rising costs or have already adjusted, here are some money moves you can make today to keep working toward your retirement goals tomorrow.</p><h2>Improve your cash communication</h2><p>If you're managing money carefully, that's great, but you're at a disadvantage if your spouse or partner isn't doing the same. (You may start to feel as though you're bailing water out of the boat, and your companion is scooping it back in.) If you have teenage kids or other household members spending money, be sure to loop them in, too. It's a good way to help teach them smart habits for them down the line. You can do this in a variety of ways:</p><ul><li>Make a point of having regular (daily, weekly or monthly) semi-formal conversations about your biggest expenses and the things your family needs to save up for, such as college tuition, vacations or home improvements.</li><li>Create a shared family budget document that you all can access.</li><li>Come up with budget "challenges," for the family, such as a no-spend week, and maybe even offer small cash prizes or gift cards for the family member who saves the most or spends the least.</li></ul><p>This type of group clarity is motivating. "In my experience, the most common mistake people make when saving money is not setting clear goals," says Mario J. Payne, a certified financial planner and financial advisor and founder of TOAMS Financial in Jacksonville, Fl. "Whether it's for retirement, a down payment on a house or an emergency fund, having a specific goal gives your saving efforts direction and purpose," he adds. "It makes the process more rewarding and helps you stay disciplined, even when faced with tempting spending opportunities."</p><img src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/smarter_spending_body-2_1347491040.jpg" alt="A woman adds change to a glass jar" class="right_image" /><h2>Buckle down and budget</h2><p>We often groan at the word budget as though it's a sign we're not doing well financially. But <a href="https://www.lifeandmoney.citi.com/lam/articles/money/managing-money/how-to-create-a-budget">creating one</a> is actually proof that you're aggressively trying to grow your wealth. You can budget in a number of different ways, but here are a few popular strategies:</p><ul><li>The 50/30/20 budget. With this approach, also known as a "pay yourself budget," you put 50% of your income toward needs, 30% toward wants and 20% toward savings and debt. "It's a classic strategy that still surprises me with how underutilized it is," says Payne. "The idea is to treat your savings like any other bill. It should be a non-negotiable part of your budget."</li><li>Cash jar or envelope system. This method can be tricky to pull off in a digital age, but the idea is that you put your money for each expense into one envelope or jar so you don't inadvertently spend cash allotted for, say, your utility bill or the beach getaway you're planning.</li><li>Zero-sum budget. With this strategy, whatever is left over after you pay your monthly expenses either gets invested, goes toward paying off debt or is moved into an emergency fund.</li></ul><p>Whichever style of budget you choose, it's bound to be helpful. Whenever you systematically keep track of how much you're spending, you're more likely to notice patterns that can help you figure out where to cut back, such as repeat services or monthly subscriptions you rarely use. Budgets also are more likely to work when they<a href="https://www.lifeandmoney.citi.com/lam/articles/money/savings/saving-money-hacks"> fit your personality</a>. If you are somebody who worries about falling short on expenses, a cash jar or envelope system may be perfect for you. If you're more of a big-picture person, the 50/30/20 budget may be your thing.</p><img src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/smarter_spending_body-1_1467917312.jpg" alt="A woman compares the price of clothing items in a store" class="right_image" /><h2>Get smarter about spending</h2><p>In the time-crunched world we're living in, it's not always easy to be mindful about where our money is going, and retailers often take advantage of that, says Trae Bodge, a New York City-based shopping consultant who runs the blog TrueTrae.com.</p><p>Impulse shopping is one of the biggest issues when it comes to wasting money, Bodge says, adding, "Retailers are very good at enticing us to shop and creating a sense of urgency, so I always encourage shoppers to take a beat before clicking 'buy' or checking out."</p><p>Comparing prices and searching for coupons are always smart steps before purchasing, and beyond that, these small moves can have a big, bottom-line impact:</p><ul><li>Join a warehouse club. These programs often entail upfront membership fees, but if you do a lot of shopping, buying in bulk can save you money in the long run. Plus, warehouse clubs frequently offer deals on travel, tires, gasoline, hearing aids, eyeglasses and appliances too.</li><li>Join a "<a href="https://www.lifeandmoney.citi.com/lam/articles/culture/eco-friendly/How-you-can-become-more-sustainable-in-your-everyday-life">Buy Nothing</a>" club. There are outposts of these all around the world, and the concept is that you can ask for anything and give away anything you want, so it can be a great source of gently used furniture and household goods especially. And it's not only altruistic but also sustainable — it's more environmentally friendly to give things away than throw them away.</li><li>Seek out cheaper alternatives. If you haven't changed the plan or provider for your electric utility, cell phone service or insurance in a long time, it can be worth researching whether there are less expensive options you can switch to. A number of websites can do the rate comparisons for you, but you might also want to call your cable provider, for example, to ask if they can come down on the price.</li><li>Optimize your credit card benefits. That is, don't forget to use the rewards you earn. It's widely known that many credit cards offer points when you shop in certain categories, and in addition, says Bodge, "credit card carriers often have exclusive arrangements with select retailers," which means you can save more by shopping there with that card. If you're going to really get the most out of your card or cards, it's important to pay attention to notifications from your card provider and regularly check the site. Rewards change periodically, he says, "and card issuers will sometimes raise their rewards for a limited time period."</li></ul><h2>Level-up your income</h2><p>The best way to enhance your earnings is to ask for a raise, of course. But if that isn't feasible in your current financial state, you can still consider other lucrative options like taking on a part-time side gig, holding a yard sale, selling clothing or furniture through online consignment shops, or doing something a little more out-of-the-box. You could rent out storage space in your home, for example, or if you have a talent other people wish they had, such as being a piano player or an excellent gardener, turn that into a part-time business by teaching students one-on-one or by through workshops at a community center.</p><p>These options may not be practical for everyone, but in general, looking beyond your current income stream for additional sources can be a fruitful exercise to keep funding your savings and retirement accounts. "Saving money is less about the amount and more about developing the right habits and strategies," Payne says, and while adopting these early gives you a bigger savings runway, "it's never too late to start."</p><p>You're also hedging your bets in a sense. If inflation rises again, you'll be relieved you've already improved your spending and saving habits. And if it continues to ease up, there really isn't a downside; you'll just have more money in your checking account.</p>

How to Spend and Save Smarter in Any Economic Climate

<p>If you're evaluating your finances, you might wonder whether it's wiser to hold onto your money or to invest it. But a better question may be: What's the best way to do both?</p>
<p>That's the key to building real wealth, according to finance pros, because if you focus only on saving for the near term, you could be short-changing your retirement &mdash; and if you invest in the future but never save money, you may find yourself underfunded when your mechanic tells you the rattle in your car wasn't just a simple fix. For a more comprehensive approach to managing your money, try these expert tip.</p>
<h3>Put your savings to work</h3>
<p>If your funds are in a savings account earning next to nothing, that can be nearly as effective as stuffing your money under a mattress. Ideally your money should go where it will grow at a higher rate &mdash; either in a high-yield, interest-bearing savings account or into another financial vehicle like a <a href=" https://www.lifeandmoney.citi.com/lam/articles/money/managing-money/money-market-account-or-cd-account" data-link-source="tiny">money market account or certificate of deposit</a>.</p>
<p>You'll want to think through the pros and cons. For instance, CDs typically have fixed rates over their term length, whereas money market rates can fluctuate over time, so your earnings may be less predictable. People tend to like the predictability of a CD, knowing how much they'll earn on interest, but the downside is they can't access their funds before the term is up without paying a penalty.</p>
<p>Others like savings accounts because there's often no minimum required to open one, and you can take the money out whenever you need. Money markets operate like both a savings account and a checking account, with high interest rates and the ability to write checks, along with the ability to sometimes make payments with a debit card (with restrictions on how often).</p>
<h3>Explore a laddered approach</h3>
<p>Staggering CDs or bonds can be a smart way to save more, suggests D. Randolph "Randy" Waesche, a financial professional and the president and CEO of Resource Management, LLC, in Metairie, LA, because it takes advantage of rising interest rates and can also help with cash flow.</p>
<p>Here's how it works: Instead of investing, say, $10,000 into one CD that won't mature for two years, you could take the same money and split it up into securities that will mature in 12, 18 and 24 months. This way, you wouldn't have all your money tied up for two years. In one year, you could take the cash from the first CD or reinvest it, possibly landing a better interest rate, and six months later, you'd have another chance to do the same thing.</p>
<h2>Optimized investing</h2>
<p>Your financial goals should be different for investing versus saving, says Mastrolia, and it helps to keep some guidelines in mind. Generally, she says, if you want your money to be available within three to five years, you should save it &mdash; which could mean putting it in short-term investments such as CDs, for example. But if you can go longer without accessing the money, and you have faraway goals that need funding (like saving for retirement or your kids' college funds), it's a good idea to invest it, perhaps in stocks and exchange-traded funds or ETFs.</p>
<p>This is because, even though there's always a risk when investing, "the market, on average, will provide a greater return," Mastrolia says. "If an investor can leave the money in the market for at least three to five years, statistically speaking, they are likely to make money." Here are questions to consider as you explore investing options.</p>
<p><img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/SaveorInvest_BodyImage.jpg" alt="Couple sitting on a couch talking"></p>
<h3>Go with an advisor or DIY?</h3>
<p>If you'd rather make financial decisions on your own, there are apps and tools you can use to manage your portfolio and <a href="https://www.lifeandmoney.citi.com/lam/articles/money/managing-money/getting-started-with-mobile-investing-apps" data-link-source="tiny">make investments from your smartphone</a><a data-link-source="tiny">. </a>The DIY approach is less expensive, but you miss out on guidance and the professional point of view that an experienced financial advisor can provide.</p>
<p>An advisor's deeper understanding of the financial landscape and investing options can be particularly useful, especially if there's <a href="https://www.lifeandmoney.citi.com/lam/articles/money/managing-money/questions-ask-financial-advisor" data-link-source="tiny">market volatility</a>. It's the same principle as working with a real estate broker. Yes, you can sell a house on your own, but you may have a less stressful and more profitable experience working with a professional.</p>
<h3>When's the ideal time to start saving for retirement?</h3>
<p>It doesn't pay to put it off &ndash; the earlier you start, the more you'll have when you need it &mdash; and that means making your <a href="https://www.lifeandmoney.citi.com/lam/home" data-link-source="tiny">401(k) account</a> a priority, not only because contributions are tax-deductible, but also because employers often match 401(k) contributions up to a certain amount.</p>
<p><a href="https://online.citi.com/JRS/pands/detail.do?ID=IRAInvesting" data-link-source="tiny">Individual retirement accounts</a> &mdash; IRAs and Roth IRAs &mdash; are other long-term savings accounts that are worth focusing on&nbsp;and are subject to contribution limits and other eligibility rules. With a Traditional IRA,&nbsp;the amounts contributed may be tax deductible at the time of contribution and, together with earnings, are taxable at the time of distribution. On the other hand, contributions to a Roth IRA are not tax deductible, but earnings on them may not be taxable when withdrawn when certain conditions are met.</p>
<p>If you're deciding which to invest in, keep this in mind: With a Roth IRA, the tax break comes when you retire, since you'll get tax-free withdrawals. That may sound great, and it is, but a traditional IRA's annual tax breaks might help you save more money every year. That said, if you fear you won't make shrewd financial decisions with the annual tax benefits, it may be best to go with a Roth IRA.</p>
<h3>What are your goals and appetite for risk?</h3>
<p>Experts tend to recommend diversifying your financial portfolio and sticking with safer investments the closer you are to retirement. You can also minimize risk with <a href="https://www.lifeandmoney.citi.com/lam/articles/money/savings/what-is-systematic-investing" data-link-source="tiny">systematic investing</a>, a process that uses data, algorithms and proven policies designed to grow your financial portfolio.</p>
<p>If you have decades to go before this stage, generally you can take more chances for a potentially bigger return; the thinking is that, if your investments lose money, you'll have time to try to recover it. Granted, markets will fluctuate and there are no assurances, but if you're in a position to wait, you may be able to limit any losses to paper. As Mastrolia points out, "If you look at the S&amp;P 500 as a proxy for the market return over the past 100 years, the average annual return was about 10%."</p>
<p>Building real wealth can take some balanced thinking, but it's worth weighing what you're putting away for the future with your spending choices today to land on your ideal spending-and-saving mix.</p>
<p>&nbsp;</p>
<p><em>&mdash; With additional reporting from Geoff Williams and Life and Money by Citi editors</em></p>

Save or Invest? To Build Wealth, Try a Balance — Here's How.

<p>If you've ever tried to finally get organized, or to become more of a morning person, you know the first step is figuring out why you avoid putting papers away or getting to bed at a decent hour. Changing spending habits is similar — it helps to understand why they started in the first place.</p><p>Their origin can vary, according to Sarah Newcomb, a behavioral scientist and author of "Loaded: Money, Psychology, and How to get Ahead Without Leaving Your Values Behind." "Some things related to money management are part of our personality," she says. "Others are inherited or absorbed from our surroundings as we grow up — and the same circumstances can produce very different results, depending on the person."</p><p>Which is to say, each person's perspective on money has been shaped by a unique mix of factors including family attitudes, peer influence, individual experiences, historical forces and our own always-evolving approach to decision making. If you want to improve your spending habits, it's useful to think about the influences guiding your financial decisions, Newcomb suggests.</p><p>"The <em>why</em> is often just as important as the <em>what</em>."</p><p>Each of us can identify with a particular spending profile, she believes, and once you determine what yours is, you're better equipped to improve your money habits. Read on to find the one that suits you best — and the advice that fits your financial personality.</p><img src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/SELFLESS SPENDER-Cropped shot of handsome man hugging his beautiful girlfriend small._0.jpg" alt="man with beard being kissed on cheek" class="right_image" /><h3>Selfless spender</h3><p><strong>Defined by:</strong> A tendency to spend generously on others.</p><p><strong>What it means for your money:</strong> Spreading the financial love is noble, but it may leave you stretched thin when it comes to your savings.</p><p>If you're a selfless spender, try to: give more time and less money. If being generous is your goal, consider helping your friends and family by babysitting for free or running errands instead. Give yourself spending limits for gifts. (And nobody has to know something was on sale; the thought, not the price tag, is what counts.)</p><h3>Status spender</h3><p><strong>Defined by:</strong> Spending driven by a desire to keep up with the latest trends.</p><p><strong>What it means for your money: </strong>The focus on right now can potentially leave you unprepared for emergencies or longer-term goals such as retirement. </p><p>If you're a status spender, try to: institute a 48-hour rule before you buy. Delaying gratification gives you a cooling-off period to ensure this isn't an impulsive purchase you don't actually need. Take inventory as well. Look around at the objects in your home, paying special attention to pricey or status-driven purchases, and ask yourself whether you still use each. Recognizing the amount you've accumulated may help you curb the tendency in the future.</p><h3>Spontaneous spender</h3><p><strong>Defined by:</strong> Buying smaller items you don't necessarily need, on impulse.</p><p><strong>What it means for your money:</strong> Small purchases can add up to one big shortfall in your savings plan.</p><p>If you're a spontaneous spender, try to: Keep a financial diary. Each evening (or as regularly as you can), write down everything you bought that day; it's a simple act of accountability that can make you more mindful when shopping.</p><img src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/spending-profile_body-2_1282653107 (1).jpg" alt="A woman gazes at items in a shop window." class="right_image" /><h3>Free spirit spender</h3><p><strong>Defined by:</strong> A hands-off approach to money management (i.e. no budgeting or number-crunching).</p><p><strong>What it means for your money:</strong> It's tough to save when it's unclear how much money is coming in and going out each month.</p><p>If you're a free spirit, try to: do one thing — big or small — to improve your finances each week. Create a budget, shop around for a better deal on your car insurance, pay an extra $10 to your credit card debt or round up your loose change and put it into savings. And consider letting an app do the saving for you. Some digital tools will link your checking account to enable no-fuss automatic savings deposits; this may help give you freedom to be a guilt-free spirit spender with some "fun" money left over.</p><h3>Planned spender</h3><p><strong>Defined by:</strong> A watertight budget, with savings included.</p><p><strong>What it means for your money:</strong> You're saving regularly but may not be taking time out to enjoy the benefits of your efforts.</p><p>If you're a planned spender, try to: Add a line item to your budget for fun. Give yourself some money every week or month to spend on whatever you want. (If you don't ever feel like you enjoy your money, you may sour on the idea of saving.) Make sure you're reserving funds for wants, and not only needs, too — think annual vacation or new electronics, and not just emergencies and retirement.</p>

What's Your Spending Profile? Find Out and Grow Your Savings.

<p>If you're concerned about money you owe, it&rsquo;s possible you need a better debt management plan &mdash; and it's also worth noting you're hardly alone.</p>
<p>The average individual household carries $104,215 in debt, according to a recent report from the credit bureau Experian. That includes virtually every type of loan, such as a mortgage, car and student loans, plus home equity loans, credit card debt and personal loans.</p>
<p>In some ways, you should feel good about your debts. Owning a home or car, and even getting a college or graduate degree, can be viewed as investments &mdash; and fortunately, with a strategic debt management plan and some discipline, you can efficiently pay down debt, save more and propel yourself toward your financial goals. The advice below can help you get started.</p>
<h2>Create a budget &ndash; and commit to it</h2>
<p>Trying to eliminate debt without a budget is like searching for buried treasure without a map. <a target="_blank" name="_Int_FthV7GGj" data-link-source="tiny"></a>A budget helps you make a financial plan by showing you how much you have to spend on bills, retirement accounts, debts and even occasional splurges, like a vacation.</p>
<p>&ldquo;The idea of creating a budget can feel like a big hassle, but a simple way to do it is to go with the 50/30/20 plan,&rdquo; says Kimberlee Josephson, Associate Professor of Business Administration at Lebanon Valley College. &ldquo;Fifty percent of your take-home income goes toward needs while 30% goes toward wants, and the remainder &mdash; 20% &mdash; is for paying off debt or accumulating savings,&rdquo; she says.</p>
<p>Of course, every household is different, and you may decide to carve up your money by putting 25% or 30% toward debt and savings. But if you currently have no monthly budget, the 50/30/20 plan can be a good guideline.</p>
<p><img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/GettyImages-902787158_web.jpg" alt="woman in a denim shirt writes in a notebook with her laptop and her cell phone nearby on a wooden desk"></p>
<h2>Factor in interest rates</h2>
<p>An interest rate is the fee charged for borrowing money, expressed as a percentage of the amount borrowed. (The principal is the initial amount of money you borrow, and the interest is the cost of borrowing that money.) Loans of all types have interest rates. The average interest rate across all credit card accounts in May 2024, for example, was 24.37%, according to data from the Federal Reserve.</p>
<p>This number is high, indicating that for every $100 you borrow, you&rsquo;ll owe an additional $24 over the course of a year. The lower the interest rate, the less you'll pay in interest.</p>
<p><img src="https://www.lifeandmoney.citi.com/rcs/v1/media/lifeandmoney/akpublic/storage/retrieveMediaFile/66c4e687cf85a6230bcbb2b1" alt="Dealing with Debt_1.jpg"></p>
<h3>Simple Interest Formula</h3>
<p>Principal ($100,000) x Interest Rate (3%) x Number of pay periods (15 years) = Simple interest ($45,000)</p>
<p>In the face of high interest rates, here&rsquo;s what you can do:</p>
<h3>1. Put extra money toward high-interest loans.</h3>
<p>With a well-organized budget, you might find that you're able to free up&nbsp;<del cite="mailto:Goldberg,%20Betsy%20[CLIENT-MCO]" datetime="2024-07-30T11:21">a</del> some funds to pay down your debt (without feeling like you're short on money for everything else). Move your debt to a lower-interest line of credit. You can do this by talking to your bank about refinancing with more favorable loan terms or transferring your existing card balance to a lower-interest card.</p>
<h3>2. Consolidate multiple loans into a single loan.</h3>
<p>This may be beneficial if the single loan has a lower interest rate than the other loans. Again, this is something you can discuss with your bank.</p>
<p>Consolidating debts can be a smart and realistic strategy for someone who feels that they&rsquo;re starting to compile too much debt but hasn&rsquo;t yet had a serious problem paying it off. These approaches can be effective for high-interest credit card debt or student loans &mdash; though to get the rates that will make it worth your while, you&rsquo;ll need <a href="https://www.lifeandmoney.citi.com/lam/articles/money/credit/6-smart-ways-to-help-improve-your-credit-score" target="_blank" rel="noopener" data-link-source="tiny">a solid credit history</a> (which means not having had a lot of late or missed payments to lenders). Borrowers with below-average credit or unstable income might not qualify at all.</p>
<p>Generally, if you&rsquo;re consolidating debts or doing a credit card balance transfer, this can be a good sign that it&rsquo;s time to focus on getting your debts paid off and under control, rather than adding to what you already&nbsp;owe.</p>
<h2>Adopt an accelerated repayment schedule</h2>
<p>If you want to save money and become debt-free faster, you need to do more than pay only your required monthly credit card minimums. Experts often recommend two approaches for this.</p>
<h3>The debt avalanche method</h3>
<p>The debt avalanche method entails ranking your debts and focusing on paying off the one with the highest interest rate first. You'll still make the minimum payments on all your other debts, but you'll put as much as you can toward the highest interest loan.</p>
<p>Despite the "avalanche" moniker, tackling the high interest rate debts first can be slow; if the money you owe is significant, you may not see much progress until suddenly, like an avalanche, you do. Once that debt is paid off, you work on the next debt with the highest interest rate.</p>
<h3>The debt snowball method</h3>
<p>Conversely, with the debt snowball method, borrowers aim most of their money allocated to paying off debts at the smallest loan first, regardless of the interest rate. The reasoning is that, psychologically, it can feel good to pay off something quickly, and your success may motivate you to work even harder at paying off the next debt.</p>
<p>Then, if you take the money you were using to pay off the first debt and add it to what you are paying toward the next debt, there will soon be a snowball effect (imagine a snowball going down a hill, getting larger and larger), because after each debt is paid off, you'll have more money to put toward remaining debts.</p>
<p>One downside of the snowball method, however, is that your larger debts will accumulate more interest as you focus on paying off the smaller ones. So, if you have larger debts with especially high interest rates, the debt snowball method might not be the right fit for you.</p>
<p><img src="https://www.lifeandmoney.citi.com/rcs/v1/media/lifeandmoney/akpublic/storage/retrieveMediaFile/66c4e6054e6e9030ce401b08" alt="Dealing with Debt_2.jpg"></p>
<h3>Debt Avalanche vs Debt Snowball</h3>
<h3>Debt avalanche:</h3>
<ul>
<li>Prioritizes interest rates</li>
<li>Pay off debt with the highest interest rate first</li>
<li>Move on to next highest interest rate debt after first is paid off</li>
<li>Pay less interest over time</li>
</ul>
<h3>Debt snowball:</h3>
<ul>
<li>Prioritizes balance</li>
<li>Pay off smallest debt first</li>
<li>Move on to bigger ones next</li>
<li>Build motivation by settling debts faster</li>
</ul>
<h3>Become a student of debt management</h3>
<p>The way many people get out of debt is, essentially, learning everything they can about it. Reading up on compound interest and debt strategies, listening to financial podcasts or reading articles on paying down debt can all spur your debt-repayment progress.</p>
<p>After all, it&rsquo;s easy to get caught up in the day-to-day demands of life and to forget that, like brushing our teeth and getting a good night&rsquo;s sleep, if you&rsquo;re not following good money habits, you may start adopting bad ones, like borrowing more than you can pay back.</p>
<p>&ldquo;Essentially, money is a tool for transactions and for advancement, which is why debt can be debilitating,&rdquo; Josephson explains, but even people with limited means can leverage credit and dig out of debt, especially by persistently and consistently taking small steps.</p>
<p><em>&mdash; With additional reporting from Geoff Williams and Life and Money by Citi editors.</em></p>
<p>&nbsp;</p>