Debt vs. Month Ahead: What to Tackle First

Ever wonder if you’re doing money wrong? One day you’re determined to crush your debt, the next you’re convinced you should save instead. You scroll through personal finance advice, listen to experts, and still feel that quiet doubt in the back of your mind—how do you know what's actually right for you?

If you've ever felt stuck on that question, you are not alone. One question we hear all the time is this:

Should I focus on paying off debt or getting a month ahead?

It’s one of the big crossroads moments in a YNAB journey. And one that sparks a lot of passionate opinions (just look at the comments section in the video below!). My cohost, Ben, and I recently tackled it on the Budget Nerds podcast, and let me tell you, we had thoughts.

Both goals are great. Both move you forward. But depending on where you are in your YNAB journey, one might give you more breathing room than the other.

Let’s walk through the pros and cons of each approach, and how to know what’s right for you.

Pros and Cons of Paying Off Debt First

There’s something so satisfying about tackling debt. Logging online, submitting the payments, and then seeing those balances shrink is like watching progress in real time. I absolutely love paying off debt!

Pro: It feels focused and motivating.
When you’re laser-focused on one goal (especially one with a finish line), it can build major momentum. There’s power in crossing debts off your list one by one.

Aimee said paying off $37,000 of debt changed everything.

As a recent college graduate, I had about $20,000 in private student loan debt, and $7,000 in car loan debt. By the time I started using YNAB, my car was underwater in repairs and needed to be replaced with a new car (another $10,000) loan. I used a side hustle of tutoring, plus careful budgeting to pay off all $37,000 in debt over 4 years. That's about $10,000 per year!
I love the freedom that the YNAB model has given me. My parents didn't have that freedom, and they're still living in credit card debt and a paycheck-to-paycheck cycle. But my husband and I have peace in our finances, and our money is aligned to our goals, both today and into the future.

Pro: You free up cash flow sooner.
Every dollar you stop sending to debt payments is a dollar you've freed up to do something else. That extra money gives you options—to save, to spend, or to redirect toward your next debt. And of course, paying down debt faster means paying less in interest over time—something that really adds up if you have high-interest debt.

Pro: It can feel like a weight lifted.
Debt can hang over you like a cloud, especially when it carries emotional baggage. Paying it off feels like reclaiming freedom and peace.

But there are a few trade-offs worth considering.

Con: Paying off debt might make you less resilient.
When you’re funneling every spare dollar toward debt repayment, you don’t have much cushion for life’s surprises. Job layoff? Major unexpected expense? Suddenly you're right back where you started—scrambling, stressed, maybe even adding credit card debt back on. There’s no breathing room to pause, regroup, and decide your next move. 

Con: It can keep you living paycheck to paycheck.
Ben said it best during our discussion, "If you're really aggressive about the debt, you'll tend to stay in this paycheck-to-paycheck cycle mode where you're kind of right on the edge all the time."

And he’s right. Aggressive debt payoff can mean you’re always timing monthly payments to paychecks and dealing with cash flow issues. That’s a lot of mental energy you could be spending on things you actually enjoy.

Pros and Cons of Getting a Month Ahead

If you’re new to YNAB, getting a month ahead means you’re living off last month’s income. When November ends, you've already got December fully funded. When your first paycheck hits in December, it goes straight toward January’s expenses. On the first of the month, every category is fully funded, and you already know you’re covered.

Once you experience it, you'll understand why people say getting a month ahead changed everything. You feel calm, clear, and full of possibility.

Pro: Less stress, less mental load.
When you’re no longer timing bills around paychecks or constantly calculating what clears when, money gets simpler. As Ben put it, “You forget it’s payday.” Everything’s already funded. You can even set up autopay for everything and stop thinking about due dates altogether. All that mental space you previously spent on due dates and account balances can be spent on building a life you love.

I love the way Instagram user @Thismarioperez describes being a month ahead:

Money is no longer in control of day to day life. I’ve felt nothing but peace for the last 10 years. I have no way to quantify it, but I’m sure this will have enormous benefits to my physical health as I start moving into middle age.

The way that @Jen_argetsinger put it is also so relatable:

For someone with high generalized anxiety, being one month ahead has taken almost 80% or more I would say of the anxiety out of money management—just knowing that the current month coming up is covered gives a lot of peace.

Pro: You gain instant breathing room.
Getting a month ahead puts space between you and your next paycheck. If you get paid on the 15th of the current month, but you're not spending that money until the 15th of next month, you have 30 days of space. That gap gives you the flexibility to handle surprises without panic. You have time to think clearly before you act.

Pro: It builds true resilience.
Getting a month ahead means you’re no longer depending on future income to meet today’s obligations. It's almost like having a mini emergency fund baked right into your budget—you've got a whole month's worth of expenses sitting there, ready to catch you. You’ve broken the paycheck-to-paycheck cycle for good.

Pro: You might actually pay off debt faster.
This one surprises people. But once you have breathing room and emotional stability, consistency follows. You stop the cycle of paying off debt, then falling back into it when life happens. I'll never forget what one YNABer said: "Being a month ahead is when we finally started paying off debt consistently."

Con: You may pay a little more in interest.
It’s true, if you delay extra payments while saving up to get a month ahead, your debts might cost slightly more in interest. But you’re not throwing money away. You’re buying time, space, and flexibility.

And those things? They’re worth a lot.

So… Which Comes First?

Here’s the good news: there’s no wrong answer.

A lot may depend on the size of your debt and how long it will take to pay them off. If paying off a few small, high-interest credit card debts will give you a quick win and some motivation—go for it. But if your debt journey will take years (hello, student loans!), focus first on getting a month ahead. You’ll build a little peace of mind and stability while you chip away at debt.

As I said on the podcast, just pick one. Don’t get stuck in decision paralysis—no matter which path you start with, you’ll feel more in control, and that’s what matters most. Pick the focus that will make your life better right now, start moving, and reevaluate later. You can always pivot.

Or Maybe the Best of Both Worlds?

After publishing the episode, one YouTube commenter offered a hybrid approach. They wrote: 

I am focusing on aggressive debt payoff but this is inspiring me to think about working on month ahead. For example I just decided for this month I will get ahead on my lowest monthly expense which is $2.01. Then the next month I will tackle the second lowest expense which is $2.12 lol - and then keep going from there.

I don't know what we call this (Savings Stacking? Future Stacking? The Breathing Room Balloon?), but it's almost like the debt snowball method for getting a month ahead! It’s such a creative, approachable way to ease into the month-ahead mindset. You can start small. You cover one category at a time, celebrate each small win, and keep rolling forward, all while still aggressively paying down debt. Before you know it, you’ve built a whole month of breathing room, one $2.12 victory at a time.

Whichever path you choose, you’re moving forward—and that’s what counts.

Have you ever worried about money? You’re not alone. Get YNAB, get good with money, and never worry about money again.