Everyone has an opinion on money matters. Is there “good debt”? Should you avoid paying off your mortgage early because of tax benefits/deductions on the interest? Today, I am as grateful as ever to be 100% debt free because my husband may not get paid next week.
The US Government’s fiscal year ends Sept 30, and at the moment, no budget is passed for the next fiscal year. Federal employees are in limbo while the House and Senate try to reach a resolution on the budget. Guess what? They don’t play well together in the sandbox. No resolution=no work and no pay starting October 1.
No tax deduction for mortgage interest can match the security of becoming your own bank. . . creating a situation where you can borrow from yourself should you face loss of income or another crisis. Building savings is like making your own insurance policy that can be activated when life throws you a curve ball. You can create this level of savings more rapidly the less debt you have. The less debt you have, the lower your expenses are should you lose income. We have money saved that will get us through this possible government shutdown, and we continue to save so that we could weather a more lengthy loss of income or other larger crisis.
A fellow blogger wrote this week on our tendency in America to curse the politicians minding the country’s budget in Washington without reflecting on our own money handling and personal debt. Stop by and read his post for more food for thought.