What comes next after clearing your debt? A big holiday? A new car? A new wardrobe full of clothes? Clearing your debts can be freeing – but if you’re not careful, you could end up back where you started.
So what should you do after paying back your debts? Planning for your future is a great place to start. Instead of being a spender, learn to become a saver and keep your finances on the straight and narrow. Take a look at the following tips to help you become better at saving after clearing your debt.
Set a monthly budget
Whether or not you’ve had a budget before, it’s never too late to start one. A budget is often met with negativity, but it actually makes sense to have one to keep track of your finances. Getting started with a budget is simple, and it will help you to know exactly what your income and outgoings are.
Sleep on it
Do you tend to rush into making purchases you might regret down the line? Sleeping on a purchase might make you realize you don’t need it after all, as things can appear different in the morning. Ask yourself if you really need something before you buy it, and if you can’t justify spending the money – don’t do it.
Save now to spend later
If your past behavior involved buying the things you want and need now and paying them off later – you can change this habit. The habit of using credit to pay for things can be dangerous, so you can learn how to save for the things you really want. It will feel much more satisfying paying for something you know you can afford over something you’re still paying off a year later.
Invest your money
By investing your money, you’re helping to grow your savings ready for the future. Investing means your money is tied up elsewhere, preventing you from spending unnecessarily. If you’re looking to invest in a lower risk environment, a Japan ETF (exchange-traded fund) could be the right answer for you. Alternative investments include property and startup businesses, giving you plenty of options for places to put your money.
Develop better money-saving habits
Being thriftier with your spending is no bad thing, especially if it means you use the extra money saved to put towards your savings. There are plenty of excellent money-saving tips out there to help you save on everything from your grocery bill to your vacation, and the more you do it then the better you will be at it. Look for bargains where you can to help your money stretch further.
When you’ve cleared your debt, the next important step for your finances is to plan for your future. With some good money-saving savvy behind you, you can become a great saver to put you and your family in the best financial position possible.