Most people work tirelessly to get out of debt without really asking the most important question; what to do the day you become debt free. Most people often don’t think that far into the future, preferring to focus on getting through the next few months.
Joining the Achieve’s debt resolution program is a great way to plan ahead for when you finally clear your debt. Until then here are a few things you should plan for when you are debt free.
Switch to Saving and Building
Once you’re debt-free, do not channel your new dispensable income into daily use. Instead, quickly make a switch and start channeling the cash into a savings account. The most important part is to set up the savings account in advance and automate it.
Make plans in advance to start the savings transaction as soon as your debt is paid off.
Have a Plan
When clearing debt and staying debt free, your goal can not be just clearing debt. After paying off your debt, you must think ahead and create a map for your financial health because failure to plan is planning to fail. This way, on the day you become debt free you will know what to do and how to get it done. Leaving things up to chance can lead to spending more money than you planned.
In a nutshell, your plan should start with debt resolutions and end a few years after you become debt free. If you haven’t started working your way out of debt, Achiever’s debt resolution program will help you get started on the journey to a financially bright future.
Do Not Take Out a New Loan
Taking out a new loan for any reason right after clearing your debt is redundant and financially unsound. The savings account we discussed is designed to help you reach your goals without amassing new debt. Part of the journey out of debt involves realizing that paying off the debt is a two-part journey; the first is clearing the debt, and the second is staying out of debt.
Stick to Your Lifestyle
We get it, you just finished paying off your debt, and you’re over the moon about it, as you should be. But you’re still miles off from the kind of financial stability you dream of, so don’t buy things you do not need under the guise of rewarding yourself.
Leaving beyond your means will likely leave you where you started, penniless and neck-deep in debt. Stay focused on your goals and maintain a simple lifestyle.
Focus On Making More Money
After clearing debt, part of your financial plan should concern investing and finding ways to make more money. Once the debt is cleared, you now have free cash to invest in money-generating projects.
If you do not have enough money at first to invest, then the best thing to do is focus on saving or consider scaling down to a more financially manageable investment. Take your time to research and find out the best industry to channel your money into. Making more money will stabilize your position as a debt-free, financially stable individual.
You have your wings. Now fly!
Clearing debt is synonymous with getting your wings back. Debt can clip your wings, leaving you unable to fully pursue your interests and hobbies. Once your debt is cleared, take that class you have always wanted to take, go for a trip, and learn a new skill.
If it adds value to your life and improves your income and skill set, why not? This is the best time to add value to yourself, so you can earn more.
The Takeaway
Getting out of debt is no easy feat. By employing these steps in your daily life, you can finally answer the big question; what to do the day you become debt free? Don’t forget to use debt resolution tools to get out of debt faster and start your journey after debt sooner.
Once debt is firmly in your financial past, financial success is just a corner away as long as you stay focused on your goals.
