Continue Paying Your Debt Even After It's Settled

For some, saving money is second nature. For the rest of us, Kiplinger's suggests taking advantage of the one time when it takes zero effort or sacrifice to start saving: when you've just settled a debt.

Image: 401K.

It's tempting to treat a settled debt like a raise, letting the monthly boost trickle away into "lifestyle inflation" or immediately financing a new purchase, but if you're already in the habit of signing that money away to a car payment or to pay off your HECS, why not put it to work for you in a savings or investment account?

Alternatively, you may want to consider diverting a car payment you've settled or avoided altogether by paying it into a maintenance fund, to soften the blow of unexpected repairs and make regular maintenance easier.

How do you motivate yourself to put some money away? Let us know in the comments.

11 Tips to Be a Better Saver [Kiplinger's Personal Finance Magazine via Budgets Are Sexy]


Comments

    I haven't been putting money away to pay off my hecs, but on about4 months time, that debt will be gone... I'm looking at the extra 850 a month as a mad pay rise!! I know should save it, but hello new car

    Yeah, great idea. If I ever pay off my mortgage, I hope I'll save at least $1000 a month after that (I'd even get some extra for myself). You're already committed to that amount outgoing and have adjusted accordingly. Why not keep going?

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