Save Money, or Pay Debts?

You have debts, but you want to save money. You have probably asked yourself, “Should I save money if I have debts?”

The answer may vary by individual, but frequently can be YES when one considers the impact of positive habits, peace of mind and rewards that accrue from savings. True, the sooner you pay off your debts the less interest you will pay overall. However by saving today, you will begin the habit of saving that will positively affect your future. In particular, by building up your emergency fund, you will eliminate the need to borrow more money in the future. Finally, savings can be invested and can sometimes earn more money than the cost of interest you are paying on your debt. Together, saving money and paying debts allow you to:

  • Have financial freedom
  • Gain respect and credibility
  • Practice discipline
  • Have peace of mind
  • Enjoy early retirement
  • Give your children more than what they need
  • Eliminate the risk of being sued

You are responsible for your own financial decisions. Learning how to evaluate the spending and savings decisions you make every pay period will help you make the best possible decisions for YOU.

Lenddo is an online community that helps its members build their credibility, gain financial knowledge and get access to loans. How about you, which do you prefer, saving money or paying off debts? Or both?

 

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Posted in Debt, Investment, Money Management / Budgeting, Savings and Investment | Tagged , , , , | 1 Comment

One Response to “Save Money, or Pay Debts?”

  1. Liz says:

    Of course, you should save money! I mean how can you pay your future debts if you don’t have any money saved? Each loan borrower are required to save money also because when time comes that you will be in need of money to pay your debts at least you can pay it directly through the money you have already saved.

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