One more...
Feb. 17th, 2006 09:53 am![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png)
Debt reduction or savings?
Debt reduction. I've had bad financial experiences in the past (bipolar + money = mess), and people chasing me down about debts, or threatening legal action, or turning off utilities, or whathaveyou is like flashbacks to some of the worst parts of my life. I feel best when I don't owe anyone anything, and I'm more prone to panic over financial messes than just about anything else.
And in terms of savings -- I'd like to have them, but I don't feel as strongly about that as much of the population seems to. Part of it, I think, is my underlying pessimism about the American financial system -- I figure it's only 50/50, at best, that money I sock away now for retirement and such will actually be there and have value in 40 years. Also, I refuse to intentionally participate in the stock market for a number of reasons, and many forms of savings involve doing so, so that feeds into my feelings on it, as well.
Debt reduction. I've had bad financial experiences in the past (bipolar + money = mess), and people chasing me down about debts, or threatening legal action, or turning off utilities, or whathaveyou is like flashbacks to some of the worst parts of my life. I feel best when I don't owe anyone anything, and I'm more prone to panic over financial messes than just about anything else.
And in terms of savings -- I'd like to have them, but I don't feel as strongly about that as much of the population seems to. Part of it, I think, is my underlying pessimism about the American financial system -- I figure it's only 50/50, at best, that money I sock away now for retirement and such will actually be there and have value in 40 years. Also, I refuse to intentionally participate in the stock market for a number of reasons, and many forms of savings involve doing so, so that feeds into my feelings on it, as well.
no subject
Date: 2006-02-17 05:23 pm (UTC)I have similar pessimism. The U.S. has a knack of constantly finding new ways to shift money to the wealthy.
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Date: 2006-02-17 06:08 pm (UTC)And, you can calculate, using interest rates on both sides, whether it's even worth it to save money if you owe money. Usually it isn't, unless your owed money is an investment of some kind (home, business...). Like, I pay an average of 5.99% interest on my $23,000 of credit and school loans, but the most I could earn in a savings account would be about 4%, so I'd be LOSING money by saving it instead of paying off debt with it.
So you are the smart one in thinking the way you do, for more than one reason.
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Date: 2006-02-17 07:06 pm (UTC)I'm much more ambivilant regarding savings. I want them, and am willing to look the other way long enough to invest. Which doesn't really fit the hippie tree-hugger morality i usually like to pretend that i exude, but, i'm zen with that part of the hypocrite(sp) in me. ;)
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Date: 2006-02-17 09:56 pm (UTC)Currently my debt is running between 4% and 7%, ao I'm socking stuff away into mutual funds as quickly as I can, which will hopefully get me at least 8%.
Of course, part of my problem is the short window I have in this area.
And hey, hippie tree-huggers don't carry huge debts because they eschew the whole consumerism aspect of life to start with. :) So I get to be doubly hypocritical.
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Date: 2006-02-22 08:06 pm (UTC)no subject
Date: 2006-02-22 08:12 pm (UTC)