Monday, May 09, 2005

Sunday School & Liquidity

Sunday School this last week was interesting. We talked about debt. It was a ward conference & they assigned a member of the Stake Presidency to talk about debt, i.e. getting out of it. Thankfully, he didn't feel obliged to throw in the quasi-tired J. Reuben Clark quote about debt never sleeping & being a crushing burden. However, he did suggest the following:

"If you have to choose between paying down your consumer debt or building up a liquid savings account...

Pay down your consumer debt."

This put to rest a fairly long-running Stamps family discussion. For those of you that haven't met us; imagine an Ettin with a pretty female face & a very Polish/Jewish/Joseph Smith nosed male face. The female head of the family said we needed to open an Orange ING savings account & earn 3% interest. The male head of the family said we needed to pay off credit card debt, thereby "saving" more money in decreased interest payments than could be achieved by the 3% offered by ING.

Result? We are now happily paying off consumer debt. Perhaps more interesting, Round II was also solved before it really began. The obnoxious male wanted to take out a big auto loan to buy a 2006 Hybrid Toyota match the family's cute black 2004 Toyota Prius. The savy female said she could wait to have a "baby mobile." So, while we will continue to pollute at a slightly higher rate for another year or least it will keep our financial environment greener.



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