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One of the things that I’m most thankful for at this point in time is that my family is no longer in debt—except our mortgage. This being the second time that I have been laid off in 7 months, my expenses are much lower because I took the time a few years ago to get out of debt.
If you still have a monthly bill—be it one that you pay off or one that you’re making less than the total payment—let me tell you about how great it is not to have another monthly bill.
I am never tempted to spend money that I don’t have.
Sure, I have money in multiple accounts, so I can technically borrow “money from myself”—but that is my money, not someone else’s. If I have trouble paying that money back, I don’t worry about my credit rating, and I don’t have to pay interest unless I want to. Having cash in hand gives me a good feel for what I have left to spend on a discretionary basis.
I don’t have to worry about my credit limit or rating.
When I went to buy my house, I was confident that I had a great credit rating. I didn’t have to worry about the time I might have slipped and missed a payment. I didn’t have to worry that I had too many cards or too high of a balance.
My emergency fund is there, just in case.
With this last job loss, the profits from my house went right into my emergency fund. I did not spend it, but I kept it, and now that I’m unemployed I have options in front of me:
- I can try freelancing.
- I can see if I can make a go at blogging.
- I can wait longer to find a job I want.
- I can take some time off for reflection, knowing that my bills will still be paid.
An Emergency Fund lets me weather a layoff without the worry and despair that comes with this time of unemployment.
You can have it too!
And the best part of all is that this isn’t just something I can have… You too can save money and get out of debt. But it’s a choice that you have to make, I can’t make it for you.
So what do you say, is it time to get out of debt?
Great post. One of the great benefits of wise personal financial moves is the stress that goes away from your life. By not buying things you can’t afford you don’t have to worry about affording huge debt payments when you get laid off. And you have an emergency fund to keep you going until you get a new job. Being without a job can still be stressful, but a good amount of the stress goes away if you don’t have short term financial worries.
Definitely, John. Those things, plus my faith that God will supply my needs as I seek His glory is what is giving me peace in the storm.