Today we have a guest post from my friend Brad Kinder of http://bradkindercoaching.com/. Brad has some great advice on what to do after you are debt free. If you follow his five things to do after you are debt free, you will end up where you want to be financially. For those of you who are already debt free, what are some other things you would recommend to do in additions to Brad’s list?
For some becoming debt free, is still a little ways off in the distance. But for others, you have recently become debt free (except your home) or maybe even your home! When you are no longer in debt, it is such a freeing feeling, but with that often times comes the feeling as well, of Now What?
You’ve spent months, perhaps even years, sacrificing to pay down your debt and when the time comes when you have a ton of cash flow to do something else besides pay down debt with, what do you do with it? Here are some practical ways you can continue to stay on track and thrive with your money, once the debt is gone…
- Celebrate! If you’ve recently paid off that last debt, WAY TO GO! You’ve come a long way and probably sacrificed a ton in the process. Go and celebrate your accomplishment. When Trish and I paid off our last credit card debt, we hosted a cookout at our house and reveled in the fact that we didn’t owe those companies another dime!
- Encourage Others. We have a lot of nay-sayers in our culture that try and tell others “becoming debt free just isn’t possible or practical”. Get out there and share with friends and family how you were able to stay focused and pay down that debt. With all the negativity that’s going on, we need people like you to shout from the rooftops that getting out of debt is possible!
- Continue to Save. When you are debt free (except your home) continue to save in your emergency fund. You want enough savings to cover months of expenses, so when an emergency happens (and one will at some point if you’re breathing) you have money to pay for it, and don’t have to rely on MasterCard.
- Keep on a Budget. Just because you’re debt free doesn’t mean you stop budgeting. Your goal should be to have a monthly budget the rest of your life! You’ve freed up some monthly income now that you’re debt free. It’s important to allocate that money to other places in your budget.
- Continue to Grow. You will always have the opportunity to learn something new about yourself and your finances
You can choose to have freedom or you can stay in your dark and gloomy place that debt created. Seek freedom now that you are free from debt!
Brad is a blogger and financial coach. His desire is to clearly and compassionately help people create and achieve their vision to thrive with their money.
He has experienced and overcome many of the challenges he now helps others navigate through on a daily basis. Brad is married with two children and resides in Franklin, Indiana.