You paid off your student loans and you finally got rid of that credit card debt. It’s a great feeling to be debt free and it only feels better when you’ve stayed that way for a while. Going forward, here are three things to be mindful of if you don’t want to slip back into debt.
Be ready for the unexpected: A car wreck could happen in an instant and then you’d be responsible for car repairs and even medical bills. If you’re not prepared with an emergency fund, you might have to put those payments on credit, and then you’ll be right back where you started. Make sure you start saving a little bit every month, so when those unexpected bills happen, you’ll be ready.
Stick to your lists: Always make a list before you go shopping. If you like shopping with your credit card (credit rewards can be your friend), make sure you buy only what you intended to. A few extra bucks here and there can cause you to go over budget, and even leaving a small balance on your credit card can get you in trouble over time.
Take a long look at your subscriptions: Whether it’s a gym membership, a streaming service, or anything else, make sure you’re really getting value out of any recurring purchase that you’re subscribed to. If you haven’t been to the gym in the last couple years, it’s probably time to stop giving them your money, even if it’s only ten bucks a month.