Scale vs. Measuring tape

I often measure my success in weight loss with a lower number on the scale than the week before.  I've been working out a lot and eating right and lately the scale has not been my friend. I'm still struggling to reach the 40 lbs lost goal which is a pound away. I feel like I'm having a mental struggle, any time I get close to that goal I end up gaining or staying stagnant, making that goal seem more and more impossible to reach. So here I sit 1 lb away from losing forty and getting more and more annoyed by the minute.

Although my scale number has remained the same, my measurements have shrunk. I find myself not exactly satisfied with this loss of inches. So I ask you... which is better: to lose inches or to lose a tangible scale number?

I should be happy that Something is happening, but I can't quite feel happy when I'm feeling so frustrated. I just want one more pound on the scale and it just isn't happening. Am I focusing and dwelling to much on it for it to happen? Should I just forget about the anxiety that goes along with it and focus on staying determined forgetting about the number?

I have to admit, when I was fresh out of college and poor I was at my absolute lowest (adult) weight which is about 14 lbs from where I am now. It is my mini goal to reach that weight again, however, although I'm 14 lbs heavier than I was then-- I fit into the same size pants as I wore then which technically shouldn't fit me quite yet. I also fit back into my dress that I've been trying to fit into for the last 7 years that only fit me at my lowest weight. I realized when it fit me how far I have come and how much I liked the dress 7 years ago, but it's so not my style now. Still, it fits and that's all the matters.

Clearly my measurements are closer to what they were when I weighed less but I weigh more--so which is better: weighing less or having more muscle and weighing more? I'd like to say I have the answer but I don't. I would like to see the number I want on the scale, but I also like how toned I've become. I think I need a good mix of both. I need the incentive of the scale moving to keep me going, but I also like being toned. It makes me feel strong and like I can accomplish anything. And that's a feeling I can get used to.