Throwing off all the debt shackles remains an illusory proposition for many. But after the initial exhilaration wears off, the financially manumitted can find themselves feeling like they’re standing alone in a trackless prairie, asking themselves, what do I do now?
On this subject, posters over at the Get Rich Slowly Forum talk about taking time to travel, buying a house, investing, or using the new financial freedom to start working for themselves.
Those are good goals but one needs to make sure to take care of the financial basics. After you build up your emergency fund, look to do the following: contribute max to 401k, contribute max to Roth-IRA, possibly invest in no-load index ETF Funds, possibly open/contribute to a traditional IRA, and own where you live.
We’re debt-free, save 40% of what we earn, have built up a 6-month emergency fund, maxed our Roth, and are now in the nascent stages of looking for our first place to buy. It’s very scary, but somehow, also, feels normal and right, the next natural step in taking control of our financial destiny.
What do you plan to do once you’re debt-free? Or what did you do once you were? — BEN POPKEN