No Credit Needed Debt Reduction Guide

Section Five: Planning For The Future

Budget For Future Purchases

Now that you are debt free, put a plan into place so that you can stay that way.

  • Create budget categories for future major purchases. I have categories labeled ‘automobile replacement’, ‘new furniture’, and ‘new electronics’ .
  • Commit to paying cash (or using cash equivalents) for all future purchases. If you do choose to use a credit card, plan to pay it off, in full, each month. I would strongly urge you to live without a credit card, at least for a few months, until you have changed your old spending/borrowing/purchasing habits.

Maximize Retirement And College Savings

In Section Three, you began to investigate the various retirement accounts for which you are eligible. Now is the time to focus your energy and to fund them in earnest. Personally, I make maximum contributions to my 403(b), a Roth IRA, and Education Savings Accounts for my children.

Inspire Others And Enjoy Giving

Find someone with whom you can share your story. Celebrate your freedom. Now that you have taken control of your finances, be sure to share you blessings with others who might be in need. When you don’t have to worry about debt payments, giving money away can be really, really fun.

Thank you for reading the No Credit Needed Debt Reduction Guide.

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Section One: Getting Started

Section Two: Moving Beyond The Basics

Section Three: Preparing For Freedom

Section Four: Staying The Course

Section Five: Planning For The Future