Beware once you've paid off your debt!

This question comes up every now and then so let’s address it right now. The question is: what do you do once you’re debt free? The reason it’s a good question is many times when you’ve spent one to three years focusing on your debt it’s easy to forget about the next step.

Celebrate once your debt is paid off than take the next step.

The next step now that you are debt free is to first continue living debt free. Second save the money you used to pay toward debt (in no time you’ll have thousands of dollars in your account, a great feeling!).

The money you’re now saving needs to go toward a couple of accounts. First, establish your emergency fund (one to three months expenses in the bank). Second, “shove it” money. Shove it money is one year worth of all your bills (shove it money is designed to give you a great emotional feeling).

The third step is to invest money. Invest money with a goal of generating income for semi-retirement or retirement. The goal is to invest sufficiently to generate 40-60% of your present income. This assumes you have no debt and own all of your stuff.

Pay off your debt is the first step toward financial freedom. After you pay off your debt live debt free and save an emergency fund, shove it money, and investment money.

Beware once you've paid off your debt!

To your success!

David…