After You’ve Paid Off the Debt
So, what do you do after you’ve paid off the debt? This has been what we’ve been going through since July when we got out of debt. You see, in order to get out of debt, we had to take our emergency fund and any other money we had lying around and used it to pay the debt.
So the first thing that we did was to sit down and figure out how to get back up to our level of savings. And then we also had to start thinking about Christmas– saving money to be able to give gifts.
So, we’re on our way toward building back up our emergency fund, saving for Christmas and saving for our various funds– automotive and medical.
What’s great is that without debt, we have a lot of money to throw at these funds and it’s amazing to have such high balances in our accounts– and to watch the interest grow.
In January, we’re going to start planning on just how high we want our emergency fund (most places recommend 6 months expenses, or $10,000 - $15,000). That’s a lot to save. And then there’s also the possibility of finding a new house and getting a new mortgage. So, we’re going to have a lot of unknowns, but God will provide and help us at each step of the way.
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
Comments from MInTheGap
Colleen said,
Wrote on October 1, 2007 @ 8:55 am Subscribed
Paying off debt is such an accomplishment! It definitely takes both partners to make it works. Best of luck building your savings back up!
MInTheGap said,
Wrote on October 1, 2007 @ 10:16 am
It’s so much quicker to build the savings up this time around than last!
Leticia said,
Wrote on October 1, 2007 @ 5:12 pm
I hope one day to pay off all of our debts and be free once and for all and have that burden off of my shoulders.
Colleen said,
Wrote on October 2, 2007 @ 9:11 am Subscribed
That’s so true! I appreciate the transparency of your posts!