Question

Provide a detailed plan, including actual dollar amounts, for Xavier to wisely use the extra $400 per month from his raise. For each part of the plan, briefly describe why you're making this choice.​

Answer 1

Answer:

He should pay his debt off, weather it is the credit card and bills, or student loan. Also he should put $50 into the emergency funds.

Explanation:

This is the best idea, why? Well, the bills and debt should come first, way before a vacation and before a new car where possible. If you chip away at your debt, and pay on time, your credit score will increase. Now, this is great because you are paying off owed money and paying bills ahead off time and on time, also your credit increases! Without good credit, you can`t get a loan for a CAR or a HOUSE! So if his credit is bad or meh, he might not get approved, therefore, he can get the car! Now emergency funds come rights after bills and debt. He has a measly $250 dollars. Now just put $50 dollars each month, you will be good. This is great because you are steadily increasing your savings by $50 each month which adds up fast without eating  up money.  These are the *MOST IMPORTANT* options and the smartest options. After all of this, then you could take a cheap vacation, but you have to pay bills and debt on time!