Save or Pay

Recently I have been reading a book written by one of my mentors, Dr. John Demartini.  He makes a point about saving that I really hadn’t stopped to think about, but I totally agree with him and think perhaps you may find this information useful as well.  The question is should you invest in your savings or should you pay off your debt.  Debt has literally worked it’s way into a position of power in our society from the top to the bottom.  We have people who have spent more than they make and as a result end up owing credit card companies sometimes a full year’s worth of earnings.  For that fact we have a government that has borrowed well into the trillions and steadily raising that number every second as the power of compound interest takes effect.  What this has led to is many people that are middle class and are just trying to get by as well as even sometimes multimillionaires that end up owing their entire “life savings” to someone else.  

Luckily in the past few years, there are people that have become the voice of reason on the subject.  There are those that have made a fortune for themselves teaching others how to get out of debt and begin building their portfolio.  There are companies that are entirely dedicated to “negotiating with your creditors to bring your debt down”.  While it is great that people are beginning to learn again that we shouldn’t allow ourselves to become so covered with owing others, that they in fact “own” us, it is vitally important that people learn the art of saving as well.

Saving is important for a number of reasons: it is important when the unexpected shows up, it’s important for peace of mind, it’s important to have a “retirement plan” down the road and so forth.  However, there is one key reason that feeds into all of the others, and that is that money comes to those who manage it.  Put another way, money tends to come easier to those who appreciate it’s value, and as a result take care of it and work with it so it multiplies.  Jesus even taught in the Parable of the Talents, that “to he that has, even more will be given, but to he that has not, even what he has will be taken away.”  You must learn to appreciate the value of money and find out how to make it grow.

So, now back to the original question: Should I save money or pay off my debts?  Dr. Demartini and I agree on the answer when we say do both.  So, what about all of the get out of debt talk that you hear all the time, are they wrong?  Absolutely not!  Here’s the key however, while paying off debt is motivating and you can sense a freedom come about you when you get your creditors paid off one by one, it’s increasingly more motivating to see your bank account grow and money flowing to you.  If you spend all your time focused on the debt, but don’t get yourself into the habit of saving and growing your fortune, then you ultimately will end up right back in debt.  How many times have you heard family or friends say, “Well we had all our debts finally paid off and then…happened. Now we are starting over on the process again.”  The problem was, they started with a short term goal which they met, but they did not take the time to discipline themselves for the future.  You must pay your bills and pay extra to get those debts down, but don’t let yourself fall into the trap in which you say, I will begin to save after all of this is paid off.  As any multimillionaire or multibillionaire will tell you, one of the secrets to fortune is Pay Yourself First and the rest will somehow take care of itself.