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Tuesday, April 10, 2012

Just Paid Off Some Debt So Why Do I Feel Broke?

I use to "feel rich" even though I was really "broke", but now I "feel broke" even though I am "richer" then I've been in a long time! 

How does this happen?

For the last few months I have been saving up cash to pay off in full two debts totaling $14,000.  The way it works is, I pay my minimum payments (to stay current), meanwhile I save up money on the side to pay them off completely.

When I finally had enough to kill the two debts, I drained my savings account down to the bare minimum emergency fund to get rid of them. Its only been two weeks since my "expenditure" and with Easter and my mom's recent birthday celebration, it has been an expensive month!

The fact that I was able to pay off these debts (ahead of schedule) and still pay for a holiday and special birthday (it was her 60th, shot out to Mom), I should be happy!  But, I have to keep it real...I feel broke!  I don't have any (cash) money...I cant wait til payday! Even though I knew I was going to pay off debt with that money, it felt good to have it in the bank, now I just want to refill my coffers as soon as possible.

I get paid in two days and next month I will not owe $370 in payments, so maybe I'll feel better then.

Emotional Downside of Being in Debt and then Sacrificing to Pay off Debt:

As some of you know...I am a financial coach and in dealing with clients I find that they have an emotional experience when they consider how much they will have to sacrifice to get out of debt. I mean, no eating out (for the most part), no major vacations, no new clothes, cutting back on personal expenses (hair, nails, spa days, etc.), and having to disappoint family and friends when they can't participate in recreational activities. (And) although I know its totally worth it to honker down and sacrifice to pay off debts, I have to say I totally understand the emotional reluctance...

Sacrificing to pay off debts sucks! I mean its like being on a really strict diet, really!  You are suffering NOW for the cheeseburger and onion rings you had 10 days ago...REALLY!

Although my net worth has increased (debts going down) and I still have an emergency fund...I have to say it sucks to see all that money go to something I already enjoyed... Honestly, I don't even know what it was that I bought with the debt. The first debt was a credit card that I haven't use in over 20 months and it was a little of this and a little of that.  The second was a (consolidation) loan I took out to pay off two other credit cards so I REALLY don't know what the heck I got for all of that! 

I mean...$14,000 just GONE...I beg you all...DON'T GO INTO are sacrificing your future for a moment of pleasure, really not worth it.  If I was debt free, what could I have done with FOURTEEN GRAND???  Oh to think of it makes me depressed...

That's why God says, "the debtor is slave to the lender", so what did I have to do with the money that I earned? Hand it over to my master! 

Something to think about...


Having problems developing a plan to get out of debt? Want to know who we are doing our debt snowball? You may need a coach...MsMoneyGuru is here to help, contact me at for a consultation.

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