Everyday I am moving further away from debt (the mortgage is my only debt), but not seeing the savings grow; I find very frustrating.
It’s frustrating because debt seemed to grow vastly every day. No matter how much you paid towards it, it still went up. That is because there was still bleeding. You’ve got to stop the bleeding to stop debt. The teachings behind a minimalistic lifestyle – less consumption – are of huge value here. It is working seamlessly for us.
Savings growth, for me/us, is a monthly results situation. That’s really when there is a visual difference. However, it must never be forgotten: no matter how slowly the savings grow, it is far better than the rapid decline into debt prison. Never again.
Imagine having no debt. Nothing. Mortgage free. Zero loans. Zero credit cards. Now you’ve lost your job. Essentially your overheads are food, water, fuel (gas, electricity, petrol/diesel). No one is going to take your home or car or other assets. They. Are. Yours. Granted it would be different if you’re renting.
If you were renting though, but had saved, at least you’ve got something. Something is better than nothing.
Take your savings, divide that by your budget outgoings, times that by 30.4 and this shall equal the days you can live on “something”. The aim: save 3 to 6 months. Example:
2000 (saved) / 2000 (budget) = 1 X 30.4 (average days in a month) = 30.4 days of survival