Tag Archive for becoming debt free

How to Make Sure You’re Debt Free for Good!

How to Make Sure You're Debt Free for Good!

How to Make Sure You're Debt Free for Good!You did it! After months or years of working hard to save and pay down debt, you are officially debt free!

Your hard work has paid off and now you can do what you want. You can buy all the things, take all the vacations, and splurge on everything, right?

Well, you could, but you might end up right back where you started. Living debt free means you won?t have anything holding you back from living the life you want. But unfortunately, it’s all too easy to fall right back into living with debt if you aren’t careful. Here’s how to make sure you don’t fall back into old habits so you can be debt free for good!

Continue With a Budget

Just because your debt is gone, doesn?t mean you can spend all your money as you like. You should still be saving for retirement, future necessities or wants and current needs. A budget isn?t just for those in debt. Budgeting is good for everyone who wants to use their money wisely. By continuing a budget, you can see where you spend and where you could save or loosen up.

Build Your Emergency Fund

If you have your debt paid off, but no emergency fund, start one immediately! By having a few months of expenses saved you won?t have to worry about where the money is coming from when you need a car repaired or take a trip to the emergency room.

As soon you withdraw from this account, be sure to put the money back into is so you aren?t missing it when you need it. Unfortunately, emergencies are all too often the reason people end up back in debt.

Be Careful with Credit Cards

To keep your credit score up, you?ll want to keep that line of credit open. But that doesn’t mean you have to use your card. You can shred your credit card so you can?t use it. This prevents you from racking up credit debt. If you feel you need to continue using your credit card, don?t put more on it than what you can pay off. It is worth it sometimes to get the cash back or miles from a purchase on your card, but make sure you have that money in the bank so you pay off your statement every month.

Save, Save, and Save Some More

Most likely you became a tighter spender while trying to pay off debt. There is no need to do away with this learned habit. By only buying what you need and spending wisely, you can continue to save money for the future. Getting paid every month is not a license to spend all of it as soon as it goes in the bank. Being debt free does mean you could relax your budget and perhaps not save as much. That being said you should continue to save your money.

Becoming debt free is an awesome feeling I’m sure. You now have the financial freedom to do most anything you want. But, if you go back to your old spending habits, you could easily fall back into a pile of debt. Instead, continue to make your money work for you by saving and using your money wisely.

 

Are you debt free? How do you make sure you stay that way?

 

Photo courtesy of: Pexels

Dealing With Roadblocks to Debt Freedom

debt freedom

343212816_6013e0049f_zGood day, friends! Today is our next post in our series on how to make and keep a plan for successfully reaching debt freedom. Last time, we talked about making a?personalized plan?for your road to becoming debt free.

Today, we’ll talk about overcoming potential road blocks. A journey to debt free often takes at least one year, and often two to five years or more to reach.? Anyone who’s ever worked to reach a long-term goal knows that many bumps can crop up along the way to deter you from reaching that long-term goal, so today we’ll talk about how to overcome some of those road blocks and help make sure you cross the finish line to debt freedom.

Overconfidence in Your Debt Freedom Plan

Sometimes, when working a plan to become debt free, overconfidence can crop up and derail your payoff efforts. This overconfidence comes in thoughts such as “I’m doing GREAT! I’m in a much better place than I was six months ago, so it’s okay to charge a few hundred dollars and pick up that new TV. I’ll be able to pay it off quickly.”

If you’re working through your debt freedom plan and having thoughts like this come up, it’s time to remember the vital step of correcting your mindset regarding your debt and your plan. It’s time to remember that the right attitude is what will get you success and is just as important as the individual steps you’ll take to become debt free. The perspective has to be one of overcoming your debt,?not succumbing to it. If your goal is to become debt free, the debt has to become your enemy, not just a friend who you’re going to stop seeing for a bit.

Dealing With Debt Fatigue

When your debt-free journey is going to take awhile, it’s easy to get tired, emotionally, of dealing with the problem, even if you are making progress. Many people reach the point where they are sick and tired of making budgets, limiting spending and looking at spreadsheets, and they’re ready to dump the whole plan by the wayside. This is completely understandable: paying off debt?is hard work! So how does one combat debt fatigue?

First, remind yourself of the reasons you started this journey in the first place. Have a list of motivational “whys” close by so that you have the motivation to keep on going. Second, go to others for support, whether it be your spouse, a trusted friend, or like-minded people you find in the blogging world. Most of the people I know in real life have very little interest in discussing money and financial independence with me: they just don’t find it exciting, so the blogging world has been instrumental in helping me stick with our plan for debt freedom.

A third option for dealing with debt fatigue is to set up a reward system. Put little, inexpensive rewards in place for each milestone you reach toward debt freedom. Those milestones can be whatever motivates you: getting another thousand of debt paid off, sticking with your monthly budget, or completing a no-spend challenge – anything that works to help keep you motivated and on track. The goal is to make debt payoff more fun and thus, help to eliminate debt fatigue.

Letting Money Have too Much Power

This roadblock can also work to hinder your goal to reach debt freedom. On our own journey to debt freedom, I realized recently that I was letting money have so much power that I didn’t even want to spend $7.50 in gas to go see a free event with my family. We went, at my husband’s insistence, and had an absolute blast. That was when I realized that my eagerness to reach debt freedom was sucking the energy and the life right out of me. I had been giving money too much power and had forgotten that money is here to serve us, not the other way around.

Dealing with roadblocks on your way to achieving debt freedom is inevitable, but overcoming those roadblocks is possible with a little work, so don’t let those roadblocks hold you back from the wealth you know you can achieve.

 

What roadblocks have you encountered when working to reach long-term goals? What are your best tips for overcoming roadblocks? How do you overcome debt fatigue?

 

 

 

Photo courtesy of:?Jayel Aheram