I have a hard time paying myself first

[Palooka]

I know, I know....I shouldn't feel this way, but I do with having debt. Help me change my mindset. I know savings is very important, even more so now, but something isn't clicking.

An example, a new doctor bill for my son. Part of me wanted to split it and pay it off in three months and put the extra in savings, but no, I sacrificed and sent them the full amount even though I didn't really have too. The more bills over my head, the more stressed I feel, even if minor.

I always pay over the minimum on any credit card/loan no matter what! If I've got an extra 20, you bet it goes to debt and not savings. Sometimes I think paying that extra, say 20 to debt isn't going to make a huge dent in seeing my debt go bye bye faster, but seeing it grow in savings may be a nice satisfaction. I guess I try to snowball it all at once.

And if our savings is growing, I want to take the chunk of money and put it to debt instead of keeping it in the bank.

And before you say it, yes I know all about DR and read the book. I think it's just old school thinking being taught that you can't save if you have debt.

Hope that made sense and wondering if anyone else deals with a battle like this in their head.

TIA

Disclaimer: this post was written during New Years.

[Greebo]

I know, I know....I shouldn't feel this way, but I do with having debt. Help me change my mindset. I know savings is very important, even more so now, but something isn't clicking.

An example, a new doctor bill for my son. Part of me wanted to split it and pay it off in three months and put the extra in savings, but no, I sacrificed and sent them the full amount even though I didn't really have too. The more bills over my head, the more stressed I feel, even if minor.

I don't understand what thinking you wish to change? Paying off your debts is a good thing.

And before you say it, yes I know all about DR and read the book. I think it's just old school thinking being taught that you can't save if you have debt.

Doesn't sound to me like you're contrasting DR - DR is about getting rid of consumer debt before building your full EF.

[JoJoBean8]

Even when we were paying off debt I saved money. Without a savings I feel scared and insecure. I would just have it done automatically every pay. It wasn't a large amount only about $50 a week but enough to see that savings bump up a little every month. Even with doing that and making around 40K a year and having a baby we were able to get out of about 33K of debt in a few years.

[Momto5RN]

once we have our 1000 EF set - any extra goes to debt .

[Ali Lee]

I will share with you what I did when my girls were @ home & money was scarce. I knew I had to save for my little family. If my paycheck was 167.30.... I saved 7.30. If it was 132.89 for the week, I saved 2.89. No matter what-I saved the last number & the change. You know it wasn't much, but over the year-it was something, better than nothing. ~Always~ pay yourself. Good Luck.

[frugalfranny]

Maybe just be firm with yourself, and tell 'self' that a certain % will go to savings...........and HAVE to stay there.

Without a savings.........what do you do when a 'new debt' comes along.........feel more stress? Without savings, and at some point, new debts become big trouble!

If the Dr. doesn't charge interest........would have used the 3 month pay off. (depending on other 'future bill' factors) Some don't charge for 90 days.......some do.

[Ramona]

Tithe yourself. Take 10% of any monies you put toward debt and save it.

[Frugal Nurse]

I feel as though a baby EF is important to have a funded up front. It will likely prevent you from getting more in debt because you had to charge that car repair.

Don't think of it as "paying" yourself. Think of it as another fixed bill you HAVE to pay. If you have to write out a check to your savings account to make it feel that way, then do so. Make it a BILL.

I think of my EF as just that - a required thing to have and will do what it takes to pay off what I owe to it.

Only fund a baby EF and work at your debt without feeling guilty. You can't justify earning 0.5% interest on a large savings when you're paying 13% interest on cc's.

You're doing a good job. Plug away.

howz that?

[MandiK]

I feel your pain completely. I can't handle any suggestion to stash away pots of cash at 1% when I'm paying 30% interest on debt. That said, I understand the risk of going without savings in that you end up with more debt when an emergency arises.

So, compromise. We have $1000 in savings at all times. Whatever extra is there at the end of the month after bills goes to debt payments. If I use part of the savings for a car repair or the like, the extra goes to savings until it's back at $1000 and then we're back to the regular debt pay off plan.

[Ponderer]

I have not been on the Dave Ramsey TMMO boards in awhile now but unless I am mistaken, the way MandiK just described things is exactly how it is supposed to be. The first thing you do before anything else is save up the $1000 EF. Make your minimum payments required on debt and get that bit of monety in reserve. Then anything extra goes to debt, paying the smallest first and then snowballing into each until all are paid. At that point there is no active additional savings until the debt is paid off and then the focus is all about saving.

I suppose there are always variables to each situation but if you are worried about saving then doing the above is a very approved method of debt payoff.

[Tess B]

Remember it's not SAVINGS in the traditional sense of an account you invest to get a high rate of return, it's an EMERGENCY FUND. think about the spare tire in your car. it has exactly ONE purpose, to be there IN CASE OF emergency. we don't try to sell it on eBay to make a couple extra bucks, it's there and we hardly think of it at all..........til the day we get a flat.

all this stuff takes discipline and that is a learned behavior. having a budget and then sticking TO the budget help us develop that discipline.