Life After Reaching Debt Freedom

By: kjmena

You might think that paying off your debts and reaching financial freedom is the easy part about debt but it’s actually what you do after that matters most. Retaining the healthy spending habits and tools that you learn from a debt relief program is what will ensure you stay on the path of debt freedom.

Many times people who reach debt freedom fall back into the same spending routine once they reach complete debt relief. This is because they revert back to their old ways of spending and forget that they can fall back into debt just as easily, if not easier than they got out of it.

To avoid being caught in a mountain of debt for a second time (and to maintain your debt freedom) there are some important things to keep in mind.

Stick with the healthy habits you learned.

The habits and tools you gained during your time in a debt relief program are necessary for maintaining a healthy financial diet. Always keep them in mind when spending money, whether it’s a small or large expense. Using your tools will be a powerful mark in keeping you from slipping back into debt and avoiding a personal financial ruin.

Be wiser after reaching debt freedom.

Now that you have experienced debt and achieved debt freedom, you must do what you can to keep yourself from going back. This time around you can make wiser choices when it comes to taking out credit cards or lines of credit. You should always read the fine print and understand every contract you sign. Whenever you have a doubt, reach out to a debt expert or professional who can counsel you and guide you toward a smart choice.

Budget your income every month.

This is quite possibly the most critical resource you can have to maintain your debt freedom. Try as often as possible to budget your money, you will end up not only saving yourself money but also time and stress. Budgeting s not just about realizing how much you spend a month but also understanding where your money goes and why. Once you do this, you will be better prepared to face financial challenges and meet your own personal goals. Making sure you budget your money well can help to keep you out of debt after you have achieved debt freedom.

Save often.

This goes hand-in-hand with budgeting because you can’t do one with out the other. Saving is the best defense to any financial issue. A savings fund gives you room for mistakes and a safety blanket when you have an emergency. Creating a savings account separate from your checking account is the best way to guarantee you save money from week to week. Over time you will start to see the money add up and know that you are investing in your future.

Ask for help.

You won’t always know what to do in every financial situation but an expert will and with their guidance you can find the best option for your situation.  Asking for help is a sign of maturity and that you know your own limits and you shouldn’t feel bad about it. Reach out to an expert whenever you feel confused or lost, already know they are reliable and knowledgeable, which will make you comfortable when contacting them directly.

Take a “less is more” approach.

This time around you know that having one credit card can be just as efficient as five, so stay away from using too many at once. Remember that each card has an interest rate and a monthly minimum payment you will have to make to pay it off. Use your credit card only when necessary and for times of serious need, which doesn’t include clothes, shoes, or trips.

 

Remember that the first step to debt freedom is debt relief, but that is just the beginning of the journey. Staying out of debt will take getting use to new healthy habits and setting limits to your spending. At first you might struggle, but keeping with these new learned habits will pay off in the long run and keep your debt freedom intact.