Here are a the strategies that I’ve adopted so that I can remain debt-free for the rest of my life -
- I live on a budget.
- I use cash, debit cards, or checks.
- I do not use credit cards. Period.
- If I cannot pay for it, I don’t buy it.
- If I want it, I save for it.
- I make a house payment to ‘myself’ each month.
- I look for opportunities to create ‘side income’.
- I look for opportunities to reduce taxes.
- I talk with my spouse about our hopes, plans, and dreams.
- I write down my goals and I work very hard to achieve them.
Here are the accounts that I’m funding so that I can remain debt-free for the rest of my life -
For Pre-Tax Retirement Savings -
I am fully-funding my 403b.
My wife is fully-funding her Pension Plan.
These plans allow us to save for retirement AND reduce our annual income taxes.
For After-Tax Retirement And Education Savings -
I am fully-funding my Roth IRA.
My wife is fully-funding her Roth IRA.
We are fully-funding 3 ESAs.
These plans allow us to save for retirement AND our contributions grow tax-free.
For Non-Retirement Savings -
I maintain an emergency fund (inside of my savings account).
I am rebuilding my non-retirement savings (inside my savings account).
I am ‘making a house payment’ to ‘myself’, each month, through a deposit to my savings account.
Those all seem like pretty good ideas to me!
Though I’ll still use a credit card, but I pay it off every month. And I use a rewards card whenever possible.
But it looks like a pretty good plan!
When you say you are making a house payment to yourself each month, is that in anticipation of buying a new house down the road?
Love your blog, btw – I’ve been a read for the last couple weeks and you and other PF bloggers (especially on the MBN) have inspired me to not only start my own PF blog but really turn my financial life around. Thanks! Keep up the good work!
P.S. Love the podcasts too.
@The Impecunious Investor – We live in a house provided as part of my compensation package from my employer… So, if I were to change jobs, I’d need a house. So, I’m saving for a purchase (or down payment) depending on the circumstances. Hopefully, I’ll be with my current employer until I retire, b/c I love my job!
NCN
#6 itself, should make you very wealthy!
After getting our taxes done, we realized we need to do more of number 8. I also need to work on number 3, but my husband is with you on that.
help——- i have more debt than any of the ones quoted here.My husband isemployed he is 75, i’m 71. can we be helped>
4, 5 and 10 are critical to me. Like Stephanie, I use credit cards (for everything) to rack up cash back savings, and pay off the balance every month.