You've paid off your debt, now what?

Once you’ve paid off your debt, now what? Establish a reserve fund immediately. If you’ve gone this long without a reserve you need one just in case. Life tends to happen and emergencies go with life. Use the $15 dollar a day strategy.

One of the interesting things about being in the pay-off-all-your-debt-mode-of-thinking is once it’s paid off it is difficult to change channels. Yeah, sure, you feel tons better and the monkey is now off you.

But it is difficult to go into the next mindset. The mindset that is in between the paying off and the saving mindset strategies is what I call no-man-land. Once you’ve paid off your debts you’re so used to paying cash for everything you can get stuck in the wrong mindset.

Once your debts are paid off you’ll discover you’re running a heck-of-a surplus. It’s time to make a strategy change. You’ll need 3 accounts not counting your reserve fund. One account is short term, one is medium term and the other long term.

The next step is to get your goals in order. Short term saving is under 5 years, medium term saving is under 15 years and long term is 20 plus years (most view it as retirement).

The idea is to match the amount of time you save to the item you want, need, or must have, such as cars, clothes, etcetera.

Whatever you do the day you’ve paid off all your debt immediately start saving even if you have to use those same strategies that got you out of debt to get you into saving.
David…