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When my husband and I look at our debt, we try to maximize our good debt and minimize our bad debt. Some debt can actually help you keep more of your money in your pocket through tax deductions, money that you can put into savings.

So first, BUY A HOME. Rent is money out the window - owning a home is the best investment EVER.

Then, take out a home equity line on your home and use THAT to pay off your credit cards and car loans. Not only are you getting a tax deduction for the interest you pay on that equity line, you lower your monthly payments since home equity line payments are spread over a larger time period than credit cards and car loans. The extra money that you're not paying out monthly can then also be invested.

And now that you're working to decrease the money going OUT, you can start putting the focus on savings. Each month, we have amounts automatically put into 529 plans for our children's college funds and we do the same for our retirement as well. With the money being automatically taken from your paycheck each month, you'll never miss it.

Learn more about this author, Kellyann Dinoff.
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