Comments on: Ravings for Savings

By: Jean M

Jean M — Sat, 11 Jul 2009 20:51:07 +0000

And don’t forget free days at local retailers! Free Slurpees at 7-11 ON 7-11, Ben and Jerry’s free scoop days, Costco or any grocery store on sample day. Once had an entire lunch at Costco that way…

By: ToilingAnt

ToilingAnt — Fri, 10 Jul 2009 14:57:33 +0000

I’m a recruiter working fulltime on a base salary, plus commissions based on my placements. We live on my husband’s paycheck, mine goes to debt reduction, and my commissions go straight to savings. In another year, we should be in a spot where I can cut down to parttime work, and hopefully that entire paycheck will go to savings.

By: tammy

tammy — Fri, 10 Jul 2009 12:06:29 +0000

I am a big saver. I am dedicated to created side hustles to save. I sell books at half.com and sell handmade items at etsy.com. I also have frequent plant sales from the abundance of anything and everything in my yard. I also hire myself out for extra PR work and special projects.
I do have debt but am snowing flaking it down. I really believe saving first, debt second.

By: JerryB

JerryB — Fri, 10 Jul 2009 04:08:46 +0000

Once your emergency fund is topped off, your next focus should be on high interest consumer debt. Once the consumer debt is retired then work on building the savings.
Although in my case I’m paying off my mortgage early, I’m still putting money into my savings and non-retirement investments.

By: Aleta

Aleta — Thu, 09 Jul 2009 20:08:04 +0000

The only time we haven’t put money into savings is when we’re not taking a paycheck and/or our emergency fund took a hit. The emergency fund gets replenished and then we’re back to savings mode. It’s so much better to have an emergency fund that is YOUR dollars, than borrowing money on a credit card!!

By: WilliamB

WilliamB — Thu, 09 Jul 2009 02:25:19 +0000

I had an emergency fund even when I was in debt (which hasn’t been the case for quite some time, I’m pleased to say). EF money is *liquid* – you have it when you need it. A paid-off house is very unliquid, which is why I agree with Kristen and don’t automatically advocate paying off installment debt like car or house.

By: Kristen@The Frugal Girl

Kristen@The Frugal Girl — Thu, 09 Jul 2009 01:02:03 +0000

Sort of. We don’t have any debt aside from our house, but on paper it would make the most financial sense to put all our money into paying it off.

However, that money wouldn’t be accessible then if we needed it, which would mean we’d need to rack up some expensive debt, like credit card debt.

So, until we are in a good place with our savings, we won’t put tons of effort into paying the house off early.

By: Alicia

Alicia — Thu, 09 Jul 2009 00:45:01 +0000

Yes! I got into debt because of school costs, got out of debt then got back in again after job loss… twice (once in 2004 and again in 2009… as well as in 2007 from moving costs out of state! So…. now I pay $300 per month to the credit cards and put in $150 to savings. This give me a small, teeny ER fund at the moment but it will equal my mortgage payment by the end of the year which will give me peace of mind as I work in an industry where my income fluctuates. It is very important to have some money in the bank so you don’t put all of life’s emergencies on the card!!! No more cards for me!

By: John Crabtree

John Crabtree — Thu, 09 Jul 2009 00:31:16 +0000

Yes. And I do it because I believe that the only way to effectively retire debt for most people, is to save money first. The tighter your budget and higher your debt, the more true it is.

Without savings to serve as an emergency fund unexpected, unpredictable and extra-budgetary expenses will destroy your budget and drive you back into debt.

For me, it is the foundation of an emergency fund that virtually all other effective debt retirement methods spring from. After I began saving money towards the establishment of my emergency fund, I found ways to earn a little extra money, reduce expenses a little more, and that has made all the difference.

I’m still mired in debt, but I’ve been at this for 4 years (yes, it was really that bad) and I’ve still got a ways to go but not a day goes by, not one, when I don’t put a little money in a jar to take to the bank and deposit into my savings each and every Friday.

My savings, and my emergency fund, are crucial to my personal economic circumstance but they are also pivotal to my having the right mindset. john

By: Kristie-ND

Kristie-ND — Thu, 09 Jul 2009 00:19:27 +0000

Lauren…my dh retired at 20 becuase he was going to be medically boarded out if he didn’t retire. It is a rollercoaster ride, that is for sure!

It is a good thing to have money in the bank, as it is a bit shocking to lose that military safety net that makes you feel “safe”.