After years of repaying debts all of a sudden you are debt free. Here is how you will feel that day.
One of the common goals that unite the readers of Savings Guide is their quest to rid themselves of ‘bad debt’. Debt that has been acquired over the years via credit cards, personal loans, borrowing money from people and more.
It’s the kind of debt that is always on your mind. It’s the debt that ruins pay day as you know not even $1 of your hard earned money really belongs to you while you still have these debts looming.
Becoming debt free is a rather aspirational goal to achieve. Having no bad debts (beyond that of a mortgage) would see you dramatically improve your cash flow. It would create a surplus of money that would otherwise be thrown onto your debt pile each month.
This surplus in money could help drive any number of fun things in life. It’s essentially the key to unlocking a lifestyle that you want, not one that you are stuck with.
So what is the key to becoming debt free? For me, it’s finding a way to feel inspired to succeed.
Inspiration comes from the heart. It’s the result of a deep desire to truly succeed and in this case; become debt free. It’s about improving your life, both for you and your family by tackling your finances head on.
You don’t want the thought of money to own your life, but you don’t want your debt owning you either.
Here are some thoughts to hopefully inspire you to take action and focus on the benefits becoming debt free brings.
Reasons becoming debt free will make you feel amazing
You will live for the now
No longer will you be repaying past mistakes. For the first time in a long while, every dollar you make belongs to you and your ambitions. Your money will help you in ways that will make your life more enjoyable.
You can now look for ways to make money
Once debt is off your mind, you can reassign valuable brain power to making money with your money, not just repaying debt. Starting a war chest of money or perhaps even going into business for yourself.
Every pay day will be a step forward to your new world
Previously your pay day was a moment of excitement followed by disappointment at the realisation you are taking one step forward and two back because of your overwhelming debt.
You will sleep better
Debts add a level of stress to our lives that we do not comprehend. With less debt, we have less worries which means a calmer existence and in turn, a better nights sleep. Are you always feeling tired? Perhaps this is contributing.
Your money will now attract more money
Your cash is now free to earn money. You can invest in shares, managed funds, term deposits and more. It’s time to make $1 earn another $1; it’s like having a mini-me that goes out each day to earn an extra salary for you.
Your respect for money will be at an all time high
It will feel like you have conquered a mountain and your value for money will be much higher; you will always remember the feeling of being overwhelmed by debt and now you will work to never fall back into the trap.
You can start seeing money as an ‘experience enabler’
Big TVs and flashy cars don’t make for a fun life. Just ask anyone who is 90 years old and looking back on their life; money should be used to enable life experiences that you will value forever.
You will start seeing money as simply an enabler that lets you do what you want.
Receiving mail will become fun again
No more credit card statements and late repayment notices. Your mail is now a source of fun, albeit with the odd council rates notice that makes you mad.
You can look to see what other ‘debts’ you can now focus on
Given that you now have no more ‘bad debt’, you can begin to focus on ways to repay other debts. You could consider repaying your HECS/HELP debt if you have any; this will free up your cash flow from future pay cheques (as the ATO is likely taking a portion of your pay to recover this debt). It will also help the Australian economy as it struggles to afford such large amounts of education debts.
You could also consider aggressively repaying your mortgage, car loan or even beginning to help your family. It’s up to you.
You will be free from emotional debt baggage
You can now use your emotional energy to renew friendships and relationships. It may sound odd; but debt makes us self-centred and primarily focused on getting out of debt. You now have a chance to use that energy for positive purposes with friends and family.
You will set a great example for your loved ones
Being able to say you are debt free and without any credit cards sets a fantastic example for your family and friends. It will inspire your closest family to do the same and hopefully your hard work will create a positive outcome for others around you.
You can start paying cash for things
The feeling of knowing you have money in your wallet and savings account ready for use, on whatever you like, instead of debt is amazing. How often do you opt out of a purchase because you know the money is better placed on your debt instead?
You can proudly tell people; “I’m debt free”
It feels great. Trust me on this one.
Do you have a story about becoming debt free?
Tell us in the comments below, we’d love to hear your story. We want to hear how much debt you had, what you did (or are doing) to repay it and how you now feel. Help us inspire others!