This week, I've received emails from several readers who have recently been laid off from their jobs. Some were surprised and some weren't.
This article revolves around a simple question, a question I've been asking myself every day for the past couple of weeks.
The question makes me think! The question gives me a better perspective for my frugality.
The question is, "What would life be like for you if you lost your job tomorrow?" If your paychecks would stop immediately, what would you do?
How long could you last on savings? Would you end up going into major debt?
If you are like most people with credit card debt, a car payment a mortgage, and living from 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 there are people who want to keep their mortgage and/or 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.
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