You are now debt-free what next? Remember that clearing your debt is just a part of it all; staying out of debt is vital to ensure that you don’t end up in the same financial mess. Living debt-free is not rocket science. All it requires is the consciousness that healthy finance is essential for you to live a happy life.
Outlined steps to take after setttling your debt.
Avoid emotion based purchases.
It is very easy to spend to make ourselves feel better. The painful truth is that the things you buy won’t make you feel better. They cannot take away that feeling, because when the initial gratification has waned, you would still be left with that emptiness you were feeling in the first place.
Increase your earning ability.
We always want to have more money, no matter how much we already have; it’s in our nature. The simple ways to earn more money is to get a side hustle, become a freelancer or contractor, learn a new skill and monetize it; use your skills to make money. With unlimited access to technology, the world of work offers more opportunity than ever for anyone to turn their skills into pay.
Unsubscribe from sales emails.
Everybody likes to get the first updates for those juicy deals and grab them as they come. If you have not planned for it, please don’t do it. You have to unsubscribe from emails that make you spend more money. Remember that the person sending those emails wants to make money. You do not need to place that instant ordering; turn it off.
Starting to build your investment portfolio is also a wise financial move once you’ve paid off your debt. If you don’t know the first thing about investing, that’s OK. Start small. Learn more about mutual funds and the stock market. Hire a financial advisor. And learn the common terms used to describe to the stock market and its fluctuations.
Practice saving money on a regular basis. This includes those who are in debt. Even if it is only $5 a month, develop a discipline of saving.
Differentiate between needs, wants and desires.
- Needs. These are life’s basic necessities. Food, clothing, employment, home, medical coverage all fall into this category.
- Wants. Wants involve making choices about the quality of goods we consume: dress clothes versus work clothes, steak versus hamburger, a new car versus a used car.
- Desires. These are the goods and choices we make not essential to our survival, safety or well-being.