Back on February 2010, I became totally debt free, but now what?
I thought that there would be a period where I would break even for a while, and then start to plow about $1,000 extra each month into investments! So now that it’s seven months later and how much extra did I save or invest? Not a single cent!
So what’s the problem? Why haven’t I been able to catch up?
Well it’s been a matter of bad luck with equipment breaking down and needing replaced and spending too much for our past vacation to Hilton Head Island!
But it’s also been a subtle form of LifeStyle Inflation! Thinking back now, I realize that when wants would arise, I would just go ahead and buy it. Yeah, I thought about it a bit, but I knew that I had the cash. Then when our car and lawn mower broke down, I had the cash too…
So now will I begin my saving and investment regiment? I certain hope so!
The only think that I’m worried about is the fact that my house is over 10 years old now, and it seems like things are starting to look a little run down! I expect things to start breaking soon or later!
I decided to lower my expectations to only save and invest $500 a month. Hopefully, I’ll be able to build back up to $1,000 though! I plan on paying myself first this time. That way I won’t have to feel guilty about missing my goal!
We’ll see if i can get my lifestyle expenses under control so I can accomplish my new goal!
-Don
Update 11/05/2012
Okay, the tide has definitely turned since I initially wrote about being debt-free now! The excess in the amount of money I was saving dramatically increased after 10 months after becoming debt-free! So I increased my 401k contribution up to 17% of my income, and still had a lot of money coming in. So I also joined my employer’s ESPP to fund my Roth IRA. Using my employer’s ESPP has been one of the best money moves I’ve made to-date! Especially since I’m using my ESPP to save the money for contributing to my Roth, and since I’m using my Roth IRA as a Tax Shield, there is a nest of benefits that makes this an awesome wealth accumulation strategy. Being debt-free now has enabled me to speed up wealth accumulation by at least doubt the rate that I was saving before I became debt-free!
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