In our 20s our relationship with money goes through some crazy ups and downs. Just like any other relationship. There’s the phase where we absolutely have no money and have to scrape by for food. Then there’s the time where we finish college but realize that we have tons of debt. Then there’s that ecstatic phase where we get our first real paycheck. These phases can all be extremely fun. I mean who doesn’t remember those $2 meals or that big of chips that served as lunch and dinner?
The beauty of interacting with 20-somethings about money is that everyone is on a different level. Some readers have emailed me to tell me that they have either paid off their debt or are close to doing so.
Is there life after debt? What can you do once you become debt-free?
Most pf bloggers will urge you to continue saving money and delay gratification. I say screw that! Reward yourself. Treat yourself. You deserve it. You worked hard to kill your debt. Now have some fun. Don’t go overboard but don’t feel bad if you want to go on a dream vacation at this point.
Don’t get into more debt.
This will put you back to where you started. Once you kill your debt you don’t want to return to being in debt. You don’t want to be stuck in this viscous cycle.
Be proactive with your finances this time around.
You screwed up once. You don’t need to screw up again. Hopefully the struggles of paying off your debt taught you a thing or two about sacrifice and hard work. This time around you should learn from your mistakes and actively avoid getting into any more debt.
Keep up the pace.
When it comes to paying off debt, some people go through hardcore measures. Everything from working 3 jobs to eating next to nothing are done to crush debt. You can keep up the pace and use this momentum to start saving up money. Now that you’re out of debt all of the income could go towards your savings and future goals. This is a great way to jack up your savings and net worth.
Yes there is life after debt. What do you plan on doing once you’re debt free?