No. of Recommendations: 49
So, I still have debt. I am steadily working my way toward my goal of no loan or credit card debt, and then I'll start hammering away at the car loan.

While throwing big chunks of my income toward debt and still putting away a modest amount of savings, I assumed I would feel broke, stressed and trapped, but the opposite happened.

The small cushion in the savings account provides a feeling of safety, and knowing that I've knocked enough of my debt down that the minimum payments are reasonable really makes me feel like I could weather a financial downturn, if I had to. (hopefully I don't have to).

My FICO score is up 10 points and my debt-to-income ratio is getting closer to being a healthy number.

I have been only buying things I need and have actually been able to squeeze more debt-paying money/savings out of my income by modifying my lifestyle a little bit.

I can finally afford to have some nuisance trees removed from the front yard (One is growing into the power-lines and one is too close to the water main and is also cracking my driveway). None of that cash is coming out of my e-fund or subtracted from my debt-payment money. It's just from pinching pennies and changing some habits.

You cannot imagine how great all that stress dropping off my shoulder feels. I can't wait until I reach my goal of being debt free (except the mortgage).
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Very commendable. Keep up the good work.
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The small cushion in the savings account provides a feeling of safety

I was talking to my cousin about this yesterday. There is something about having money in the bank that reduces stress, even if you still have debt.

Someone in my family is going to have to get a divorce and needed 3k for it and has been asking her mother to loan her the money, even though she just got a check for 5k. How much stress would it have relieved if she had just saved some portion of that check??? I really wish more people realized how important this is.
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No. of Recommendations: 3
Someone in my family is going to have to get a divorce and needed 3k for it and has been asking her mother to loan her the money, even though she just got a check for 5k. How much stress would it have relieved if she had just saved some portion of that check??? I really wish more people realized how important this is.

Unfortunately, some people seem to be unable to save money in an accessible place. If it's in their savings account, or (worse yet) their checking account - it gets spent. They seem to be unable to save unless the money isn't accessible without repercussions (like a CD penalty or selling a stock). Then when they need the money because something that they didn't anticipate, but should have (like having to pay for dental care, or replacing a tire) happens, there's a bunch of drama, because "I can't break a CD" or "I can't sell a stock" - so they borrow more money, and end up keeping themselves continually in debt.

The small cushion in the savings account provides a feeling of safety

I was talking to my cousin about this yesterday. There is something about having money in the bank that reduces stress, even if you still have debt.

I guess some people need drama and stress more than they need safety and serenity.

AJ
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No. of Recommendations: 3
There is something about having money in the bank that reduces stress, even if you still have debt.

I think it's a big confidence boost when you start taking control of your finances. Even if savings is small, the act of making a decision to pay down debt and build some savings gives a feeling of control in a very uncertain world.
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