The last 2 things to paying down your debt - Celebrate and save

[homesteadmamma]

I've made it really simple to paying down your debt. Now it's time to celebrate (once your debt is paid off) and then start to save.

Time to celebrate - after all the hard work, it is time to celebrate, doing so with cash only. If you've wanted something new and you now have the cash for it, go out and buy it. Of course, be realistic here, you don't want to spend all your cash. You want to start saving it.

Save - now is the time to start saving for retirement, adding to your emergency fund, your kid's college (if you are helping them through college), etc. Don't go on a spending spree and buy, buy, buy. Once you've had a time of celebrating, then save, save, save. No one knows how much money we will need for retirement. No one knows how much kid's college will cost in years to come. The best thing now to do is to save those $$ that would have went towards debt. If you were paying $500 on debt and your debt is all paid off, put that $500 in the bank!!!

Pat yourself on the back. You've done it, you've accomplished a great task. Congratulations!!

[canadian gardener]

Very good point CJ. There has to be a reward or a point to all the hard work, and I think we need to mark these milestones in our lives. Celebrate these accomplishments.

[Jennys2angels]

That is a very good point. I will have to keep that in mind for once all our CC's are paid off.

[younglady50]

I can't wait for that day to come, hopefully in January of 2009. I can't wait to put, as you say, that money into my EF. I put at between 200-300.00 a month on reducing my debt. Boy will that look nice in a savings account! Talk about security. Ten years later, and I will be debt-free. I have not had that feeling for a long time. Keep trucking all.