Savings vs Debt

[MoneyMinding]

Hi there -

I have an alternate suggestion for when your maternity leave kicks in - what if you took the freed-up money and used it to invest in a small business you could start from home? An emergency fund is a good thing to make us feel secure, but how much might you save by being at home with your baby while you earn a few hundred dollars a month - or more - doing something you are passionate about? There are many, many options for generating income from home, especially if you have Internet access. It's always a good idea to look at money coming in and ask yourself "how can I turn that into more?"

Best wishes for your new family!!

[MoneyAdvice]

It is better to save money asap so that it will be better to manage funds in the future.I am sure, with the baby on hand it will be difficult to spend money as we like.


Canadian Money Blog

[judemcenerny]

As long as there is debt, savings are a waste of money.

Look here:

http://www.stanleyroth.org

And here:

http://www.pierreford.com/special.cfm?ID=2667

And here:

http://www.stretcher.com/stories/990920i.cfm

In the red is in the red, and even if you manage to lower your credit card debt for only a few months, you lose less money that way than holding a savings account next to your debt for the same period.

Reduce debt by any means possible. Bleed less.

[n_vizion]

If you can save enough to last throughout your leave, you definately want to.
If your husband can take on a second job temporarily until the baby come, you guys can get rid of your debt (hopefully) and have a good amount of savings. That way if you want to stay out of work longer, you will be able to afford it.

[cindybythesea]

I don't understand why people keep money in a savings account that pays 3% when they have debts that cost them 15%. It makes no sense. I say it's always best to eliminate any debts with significant interest before adding to savings. Yes savings is a good cushion, but you can always use your credit card for an emergency too.

[DistilledRose]

I would have to agree with the building up your savings idea. That way you don't have to worry about making minimum payments for things if you can't get back to work as early as you would like. I would also agree with looking for work you could do from home while you are on maternity leave. Transcription pays fairly well and you can do it at your own pace, for example.

[Jason830]

I also agree...The best thing you can do is build your savings account for the future.

[household9]

So another probably really basic question.... when we are talking about 'savings' and 'emergency funds' being several months of expenses, is this money actually kept in a savings account? I've been putting mine in CDs to get a tiny bit more interest, but then of course it's not quite as liquid. ~ Sami