Sunday, July 6, 2014

What To Do After You Pay Off Your Credit Card Debt

If you have managed to pay off all your credit card debt I dedicate this post to you.

1. Save
Yes, you were in massive debt on the verge of destroying your future but managed to turn it around. In the process you must have penny pinched and lived below your means.  It took a lot of discipline to set aside money for your monthly payments.  You must now use that discipline to take that same amount and put it towards your savings account.  Resist the temptation to go crazy and spend all your money as if paying off the debt was the end of it.  The journey has just begun and it's time to fatten up your savings and take control of your future.  You paid a lot of interest on that debt now flip the scenario and start getting interest on your money by investing some of those savings.

2. Evade Major Purchases or Debt
Try not to make any major purchase like a car or house at least not at first.  Give yourself some breathing room and let it sink in; the amount of reckless spending you took on and the amount of time and sacrifice it took to pay it off.  Do not take on another huge amount of debt.  Unless you have a very large growing family and need to upgrade don't go buying that house so quickly.  Do not get an expensive degree.  First learn to save and create some financial cushion for yourself.  I think this is a big problem for people they borrow enormous amounts with out really knowing the true value of money and the hard work it takes to create that type of wealth.  If people took out the time to save and create wealth they would think again before getting a $100k degree, if you have not created $100,000 how do you know what owing that amount of money will feel like and how much labor it takes to pay it off.

3. Learn To Respect Money
It is the love of money that may lead to evil but not the respect of it.  Get better acquainted with your money learn the history behind it.  It sounds funny to do research on the history of your dollar bills and coins but this can help you hold on to it for a longer time.  If there is a girl/guy you see everyday on the street and don't know their name or anything more about them aside from their physical appearance chances are if they disappear you won't miss them much and will quickly forget about them.  The same with money if you don't know much about it you will not miss it when it leaves you.  I notice that some people are very disorganized with their money and don't manage their finances well. I believe they have no respect for their money or their finances and that is why they end up in debt.

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