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  • Writer's picturezarreen soni

How to stay on track after you become DEBT FREE?

Don't just make your last payment. Continue on. When you are truly debt-free and moving toward a financially free lifestyle, you can concentrate on the following…

1. Start Saving for a Major Purchase: If one of the reasons you wanted to get out of debt was to begin saving for such a purchase, it's time to start making your dream of buying a home or a new automobile a reality. Make monthly deposits into a savings account that is exclusively utilized to achieve your goal. How quickly the balance rises will astound you.

2. Review Your Insurance Coverage: You might have gotten by with the barest minimum insurance coverage while working to pay off your debt. Though you might want to consider boosting your insurance coverage now that you are earning more each month. For instance, if you've been meaning to get life insurance but haven't been able to, the moment is now. If you're approaching middle age and want to protect your later years, think about purchasing long-term care insurance. Of course, getting sufficient coverage for your automobile, teeth, and health is also necessary.

3. Organize Your Financial Life: If you were able to pay off all of your credit card debt, there's a good chance that you're already at least somewhat organized, but there's always room for improvement. To guarantee that you never miss a payment or pay a bill late again, set up auto-pay on as many accounts as you can. Create a filing system that suits your needs and arrange all of your financial records. To reduce the temptation to overspend and to avoid receiving annoying mailings, decline pre-approved credit card offers.

4. Research Your Retirement Options: The earlier you start saving for retirement, the better, even though it's never too late. Check out the retirement savings alternatives offered by your company as well as alternative options like a Roth IRA. If you're self-employed (k), consider a SEP IRA, Simple IRA, or Individual 401(k). Whatever strategy you choose, the most crucial thing is to stick with it and wait to use the funds until you are old enough to retire. Apply the same discipline you employed to pay off your debt to retirement savings. You are aware that you own it.

5. Take Your Emergency Fund Seriously: In a perfect world, you would have been accumulating an emergency fund while paying off debt. If so, increase your contributions to get closer to your goal of having enough money in that account to last for six months. If you haven't already, you need to start saving money for unexpected expenses right soon. Contribute as much as you can each month to the account. Why is having emergency cash so important? It can help you avoid using credit cards to pay for legitimate emergencies, like as expensive auto repairs, the cost of a new air conditioner, an unexpected medical bill, or continued living needs in the event of a job loss. Being surprised is the last thing you want to happen.

Reaching the finish line is such a fantastic feeling. Let's continue on our path to financial freedom and debt freedom so that you can invest your money in all the activities you enjoy doing.

Contact Clear Review Consultants for a tailor-made financial solution plan on 0215696041 or visit our website to fill out a form: APPLY HERE

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