Debt free is a tag many aim to achieve. It is challenging especially if you have managed to pull yourself from an impossible debt sinkhole. The idea of such freedom is achieved only if you are determined. For many, becoming debt free is a life long struggle. They have too many debts weighing them down and eating into their limited income. Not surprisingly, they may also have many debts from their education that keep dragging on.
If you are determined to become debt free or are close to achieving it and wondering what’s on the other side, then you have come to right place.
1. Finance Becomes so Easy and Enough Choices
The first thing that hits you when you are out of debt is the financial freedom. You have more income than you are used to and paying the bills is easy. In fact, you don’t have to go through confusing debates of “Which bills can I pay now and which bills can wait for later?”
Suffice to say decision making is much simpler, you pay all of your bills and still have spare cash to enjoy. You make the choices.
2. Be Financially Free
Since you don’t have any debt to tie down your finances, your money has much more freedom. You won’t have to hold off on going off on trips or buying designer wear. You have financial freedom you never had before and you don’t have to hold back.
If you ever felt that debts really held you back in life, you can start giving a new definition to your life like buying that car you always wanted. Your life rules are re-written and you don’t have to worry about collection agencies.
3. Keep Improving your Credit Score
Your credit score is probably much better than when you were in debt. However, you need to keep improving your credit score. A good credit score is a good rating on your financial situation. Plus, it improves your dealings with any financial institution in the future.
4. Continue Budgeting
You probably are used to creating a budget for every month to keep your expenses in order and save more. Just because you are debt free doesn’t mean you should stop. Budgeting is a good financial habit you should continue with. It ensures you don’t overspend and continue saving.
5. Start Planning for Retirement
You need to start planning for your retirement. Most of your savings must have been spent to pay off your debt. Retirement is the last phase of your life and in the end, you want to live comfortably. Set up a retirement fund and every month start putting a little bit in it. Look for investments which will create cashflow on a monthly basis.
6. Don’t get back into Debt!
Getting back into debt is very easy. Now that you are free of debt you may want to splurge and even take a loan! Don’t be stupid, don’t get back into the debt sinkhole. Continue budgeting and managing your finances well.
Even if you have debt from credit card usage, keep it as minimum as possible and manage it well by always paying it on time.
Now, here’s to you! Kudos for becoming debt free or choosing the path of becoming debt free.
