Guide

Debt Reduction Guide: Planning For The Future

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.

You have been reading Section Five: Planning For The Future.

Please bookmark this page or subscribe to the No Credit Needed RSS Feed to insure that you receive all sections:

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

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4 thoughts on “Debt Reduction Guide: Planning For The Future

  1. I find it important to focus on maximizing retirement funds as well, but it can be hard if income is not high. Maxing out 401K, Roth IRA, and having a savings can be hard if you have rent, utilities, groceries, gas, etc. I am making a huge effort to contribute as much as I can, but I do feel the crunch. I am nearly out of student loan debt, and am excited to how my personal net worth will grow in the months to follow.

  2. I am so glad I came across your blog. Your advice with the debt reduction guide is a life-saver. To some people I may not have alot of debt, but to me it is alot when you don’t have alot of margin in between. I am actually excited about the new gain knowledge to pay off debt.
    Once again, thanks.

  3. i’ve been paying off my student loan since feb 2006 and this is the last year that i am paying off this burden of mine. you are right, i’m going to be crying of joy once this is gone. it’s really worth it but i feel so discouraged sometimes because i want to be doing what everyone else is doing.. going on vacation, buying a condo, putting money away for retirement, getting a car!!>commuting on the bus for 3 hours a day is no fun. thanks for the encouragement. i’m going to keep revisiting this site just to remember to stay on course because it’s definately worth it to be free.

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