Once debt free it is important to stay debt free. This is one of the lessons we teach our boys. It is easy to get back into debt if you let yourself once you are debt free. I know this from personal experience. I let myself do this several times until I got tired of the rollercoaster of debt and jumped off.
It took me remembering the pain that I felt when I was in debt and the times that I wondered how I was going to make the minimal payments that were due for the month.
People I worked with in the past had different reasons why they wanted to stay debt free. Some didn’t like the feeling of not wanting to answer their front door because it could be a debt collector, some people were afraid to answer the phone and others were afraid to check the mail because it may have more letters from Debt Collection companies. Finally, the pain of those experiences was enough for them to make a change and take action to not only get debt free but to stay debt free.
If you are married or in a committed relationship then this can be twice as hard than for a single person of course. So, if you are married or in a relationship it is so important to have this be one of your monthly topics at your monthly financial review meeting or celebration parties. What ever you want to call it.
Once you are debt free for life then you can start focusing on your Financial Freedom goals and how you are going to get there. For our situation we wanted to be debt free except for the house before we started saving for our retirement.
We know the value of investing money early but with debt we are investing into getting debt free for life so we can then really be focused on our Financial Freedom goals.
Some times people want to be totally debt free including their house before investing for retirement. There is no right or wrong way that I feel as long as you are reaching your retirement goals. Reminder that it is a math choice and consequences. Bottom line you need to be happy with your choices and can live with the consequences.
We suggest to our kids that they invest up to 15% into a Roth 401K plan or what ever option they have at work. This is their choice so if the company matches 50% up to the first 6% let’s say, then they could invest just 12% so they can take the other 3% to paying off their Mortgage or building up their Emergency Fund.
I am a fan of Roth IRA and Roth 401Ks. I would rather pay taxes on a $1 than what it could grow to in thirty years from now. Think how it would be better to pay Taxes on $25,000 than to pay Taxes on $800,000 in the future. It is good to always do research and check with some of your Professional Advisors to see what they feel is best for your situation.
I like to work with Fidelity Investments, Charles Schwab or Vanguard. I know there are a lot of other major companies and Independent Financial planners available. I have worked with others over the years but wasn’t always happy with the service level or what they wanted to charge for their services.
Some people feel they have the education themselves and want to invest on their own. That is one of the reasons we like our current company is because of all their free tools and retirement planning tools. We also wanted to be with a company that had offices all around the United States so that if we wanted to go in to an office with questions then we could.
We moved from Minnesota to Arizona and it was seamless getting setup with our new Financial office. We actually have two offices that are within about thirty miles from our house so it is an easy drive in either direction. We do most of our transactions on line and have only been to their office four times in the last five years.
Plus, the company we are with offer Part to Full Management programs to handle our investments. We currently do it ourselves. We are mostly in EFT’s and Mutual Funds in our Retirement accounts. In our Brokerage account we are mostly all Dividend Stocks and Dividend paying EFTs.
The company we are with I feel good that they will be able to help Darlene in the future if I pass away before she does. I always take Darlene to each meeting we have had with them so she can ask them questions and feel comfortable working with them. We have Darlene on every account and asset we own so when that day ever comes it will be easier on her transition.
Since we are debt free then we are able to invest more towards our Financial Freedom goals. Plus, Darlene in the future shouldn’t have to worry about paying off any debts and just focus on our Assets and Investments.
It is a lot more fun have Assets that pay us money each month rather than Debts that cost us money each month. Living Debt Free and Staying Debt Free for life is a great feeling. I am so glad that Darlene feels the same way. When we started dating back years ago, she was also debt free so we had that in common.
I am not giving you any Investing advice on where to Invest your money. I am not a Financial Advisor and you can read my full Discloser on MillsWay.com. Reminder this show is for entertainment and you should always seek advice from your professional team. We seek advice from not only our Financial Company we work with but also our Accountant and Lawyer.
Are you Debt Free? If not, then what age will you be Debt Free? What will it feel to be Debt Free? Why do you want to be Debt Free? I remember the stress of not having the money in the past to make our minimum payments and I never want to feel that again. That is one of the reasons we want to stay Debt Free for life.
Here are two positive quotes I like; “There is no way to happiness; happiness is the Path.” By Buddha
“Change Your Thoughts – Change Your Life” by Wayne W. Dyer
Let me know your thoughts about this blog and let me know of others you would like me to do in the future. I feel we can all learn from each other. That is why I am in the helping people retire early, enjoy life more and be more successful. Also, please see my Disclaimer page.
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