The Question of the Day
by Doris Dobkins
How Much of an Emergency Fund Do I Need?
6 Squirrely Ways to Save
Easy Ways to Build an Emergency Fund
Today, I have a question for you. Someone asked me this just a few days ago and it really made me think. It's something we usually don't like to talk about because it's tough and unpleasant, but I think it can give us a new perspective.
The question is, "what would life be like for you if you lost your job tomorrow?" Your paychecks would stop immediately so what would you do? If you don't like this question, here's another one. What would you do if you just missed the next 3 paychecks?
If you are like most people with credit card debt, a car payment, a mortgage, and living paycheck to paycheck, you'd probably panic. If you had some money in savings, it could tie you over for a while but for how long?
I want you to think about this question for a while. If you have no debt, no car payment, no mortgage and no credit card balances, how much money would you need each month to live on? Now if you were to lose your job, how would you feel? You could probably get a minimum wage job anywhere and get by with no problem, right?
What is that worth to you? Is it worth getting out of debt for? Is it worth it for you to have financial freedom and peace of mind that a debt-free lifestyle can give? If so, establish a debt elimination plan for yourself, follow it and achieve success.
I know that there are people who want to keep their mortgage and invest their extra payments for a higher return in the stock market. I know that many people are hanging on to their mortgage because they think it is their last tax deduction. But what about the peace of mind that comes from knowing that what's yours is yours and that you are debt free?
For me, that's the only way to be. I'm working on my plan, how about you?
Doris Dobkins is a money saving expert, author and speaker and has helped thousands of people find ways to save money and get out of debt.
Take the Next Step
- Take action today, so you will be better off tomorrow. For instance: find a new job , get additional training, and get out of debt.
- Stop struggling to get ahead financially. Subscribe to our free weekly Surviving Tough Times newsletter aimed at helping you 'live better...for less'. Each issue features great ways to help you stretch your dollars and make the most of your resources. Subscribers get a copy of Are You Heading for Debt Trouble? A Simple Checklist And What You Can Do About It for FREE!