When the Debt’s Paid off


 image credit: Google

Chances are, if you’re in debt, you’re trying to pay it off. Great! While you’re paying it off, focus on the freedom paying it off brings, rather than the debt itself.

Say you’re paying $400 a month to pay off your debt. Finally! The day is here! You’re debt-free! The following month you have $400 you are used to putting aside for payment.

Create a special savings account. Monthly deposit that $400 or whatever amount you’ve been paying. You’re created a habit of putting aside money, so keep putting aside that same amount—into a savings account. Some banks let you have several savings accounts, and let you name them. (ING Direct is one of those banks) http://www.ingdirect.com/savings

I suggest combining this with writing a goal. It’ll keep you focused on saving for your goal. When you attain goal’s needed amount of money, you can spend it. Maybe you want to invest it, or travel, or remodel a room. If the account is your “fun money” maybe it’s money for anything fun—movies, dinner, a quick get away. Either way, save it first.

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