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:
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?