Get Yourself Out Of Debt: Step 6: Life After Debt:
At this point debt freedom is still a dream for us, although one that is approaching faster all the time. Originally our debt repayment was going to take about 7 1/2 years on paper based on things not changing. But since then my salary has increased slightly, our expenses have decreased, we live much more frugally than ever and now we have a good boost from both of our part-time jobs as well. Tough times call for desperate measures. But as a reward for all the hard work, we will probably end up being debt free in about 4 1/2 years instead if all continues to go as planned. There will always be setbacks, we had to replace the transmission in one of our vehicles this last summer at a cost of almost $2000. But you deal with the setbacks and keep moving forward.
The road to debt freedom is long and windy. It starts of very slow and feels like an uphill battle. But eventually you will reach a peak and pick up the momentum. Before you know it you too will be well on the way to a better life, one without the burdens of debt.
Once you are debt free you will have a lot more disposable income. Just don’t make it disposable or we will end up right back here all over again. Living within your means is just that… nobody says that just because you can afford to live lavishly that you have to.
So what is there after the debt is gone? Lots. Here’s some things to think about:
- Fully fund your 401k to get as much company matching as possible
- Fully fund a Roth IRA to get tax free compounded interest
- Fully fund 429 plans for all your children and send them to college debt free
- Fully fund an emergency fund with 6-12 months of living expenses
- Start a savings account so you can pay cash for your next vehicle
- Start a savings account so you can pay cash for your dream vacation
- Do whatever you like, just do it with cash!
- The best thing you can do is motivate someone else!
We wish you the best of luck in your own debt elimination adventure. You really can get out of debt yourself, and hopefully someday we can prove it!
-The Engineer & Money Savin’ Momma
The Full Story: Our get yourself out of debt series….
- Step 1: Get Yourself Out Of Debt – Make The Choice
- Step 2: Get Yourself Out Of Debt – Getting Started
- Step 3: Get Yourself Out Of Debt – The Power Of The Snowball
- Step 4: Get Yourself Out Of Debt – Snowflakes From Frugal Living
- Step 5: Get Yourself Out Of Debt – The Motivation Problem
- Step 6: Get Yourself Out Of Debt – Life After Debt (You are here)
*Note: This article is meant to be a general example of how one would get themselves out of debt and an explanation of how we are getting out of debt. I am not a certified financial planner nor am I a CPA, so this article should not be considered financial advice, but a general guide for inspiration.