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 Achieve’s debt settlement program is a great way to plan ahead for when you finally pay off your debt. Until then, here are some things you should plan for when you’re debt-free.
Switch to Save and create
Once you’re debt-free, don’t funnel your new disposable income into everyday spending. Instead, make a quick switch and start funneling cash into a savings account. The most important thing is to set up the savings account in advance and automate it.
Plan ahead to start saving as soon as your debt is paid off.
Have a Plan
When paying off debt and staying debt free, your goal can’t just be paying off debt. After paying off your debt, you need to think ahead and create a road map for your financial health because failure to plan is planning to fail. That way, the day you are debt free you will know what to do and how to do it. Leaving things to chance can lead to spending more money than you planned.
Simply put, your plan should start with debt resolutions and end a few years after you become debt free. If you haven’t started getting out of debt yet, Achiever’s debt resolution program will help you start your journey to a brighter financial future.
Do not take out a new loan
Taking out a new loan for any reason right after paying off your debt is redundant and financially unsound. The savings account we discussed is designed to help you reach your goals without racking up new debt. Part of the journey out of debt involves realizing that paying off debt is a two-part journey; the first is to offset debt, and the second is to stay out of debt.
Follow your lifestyle
We get it, you’ve just finished paying off your debt and you’re excited about it, as you should be. But you’re still miles away from the kind of financial stability you dream of, so don’t buy things you don’t need under the guise of rewarding yourself.
Going beyond your means will likely leave you back where you started, penniless and in debt. Stay focused on your goals and maintain a simple lifestyle.
Focus on making more money
After paying off debt, part of your financial plan should be about investing and finding ways to make more money. Once the debt is settled, you now have free cash to invest in money-making projects.
If you don’t have enough money to invest in the beginning, your best bet is to focus on saving or consider reducing it to a more financially manageable investment. Take your time to research and discover the best industry to channel your money into. Earning more money will stabilize your position as a debt-free and financially stable individual.
You have your wings. Now fly!
Eliminating 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’ve always wanted to take, take a trip, and learn a new skill.
If it adds value to your life and improves your income and skills, why not? This is the best time to add value to yourself and be able to earn more.
Getting out of debt is not an easy task. By using 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 post-debt journey sooner.
Once debt is firmly in your financial past, financial success is just around the corner as long as you stay focused on your goals.