FMOOD 0301: Become a Better Saver While Paying off Debt - a podcast by Tom Merlino | Tom is inviting you to follow him on his journey to get out of debt and get into prosperity.

Today you'll learn how you can actually become a better saver while you are in the process of paying off debt. It's not as difficult as you may think, but with that said, it will still take some focus and a little determination on your part to get this thing off of the ground.

 

Most of the time, when many of us come across a month where we're short on financial resources, we'll reach for the credit card in order to make up for the difference. Of course, this isn't a good thing if we're trying to get out of debt. Doing this repeatedly can easily get us into a bad habit where we're constantly taking two steps forward and five steps back. Understandably, we simply don't want this.

 

Instead, I started thinking about ways that I could somehow prevent this from happening by using a type of sinking fund (for lack of a better term). I decided to save up enough money to provide wiggle room from month to month for added expenses that didn't qualify as an emergency but still needed addressed. The emergency fund is still there, but this is for emergencies only. A shortage of funds in any given month isn't typically considered to be an emergency, and this is one of the main reasons that I knew that a different type of sinking fund needed to be established.

 

A great benefit of this strategy is that it has forced me to become a better saver. I had to temporarily put off more aggressive debt payoff strategies for a little bit while I was saving up for this new sinking fund. I knew that it was necessary to shift gears in order to get this sinking fund off of the ground. This was a good thing; I've already had to use the sinking fund and was happy that it was available.

 

Go ahead and give this a try. I can't say that this will work for everyone, but it is worth considering if you think that it may be beneficial to have an extended comfort zone while you're getting out of debt. It truly is a backup plan that gives you a little peace of mind and prevents you from continuing to use credit cards when expenses inevitably increase in the ebb and flow of life. God bless.

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