SEVEN THINGS You MUST Do After Becoming Debt Free - How We Changed Our Lives After Paying Off Debt

So you're debt free. Now what? Here are 7 things Brittany and I did after becoming debt free that helped us to regain focus and change our lives even more.

0:00 - Introduction
2:07 - Remember Why You Became Debt Free
4:11 - Enjoy the Moment
5:28 - Celebrations are Important
7:05 - Emergency Fund
9:42 - Make BIG Goals for Your Future
10:33 - Plan Out How to Reach Your Goals
11:43 - Risk Taking Can Change Your Life

It's easy to lose sight of the bigger picture if you've been laser focused on paying off debt for any extended period of time. Kind of like the phrase, "you can't see the forest for the trees." Your entire life adapts to that single mission, and you lose sight of other things as they get pushed to the back of your mind. This happened to Brittany and I a little bit after becoming debt free and finishing our emergency fund (about 5 years ago). If you're following Dave Ramsey, becoming debt free and fully funding your emergency fund are only baby steps 2 and 3. There are 4 more. And even though there's still a plan to follow after that, the plan becomes a lot more subjective/qualitative and a lot less about numbers. It can be difficult trying to figure out the next steps. These are some things Brittany and I did.

1) Remember Why You Became Debt Free in the First Place.
Most likely it wasn't just to become debt free. There was probably a deeper reason to it. Whether that be to become financially independent, have more freedom with your money, start the journey to home ownership, etc. It’s okay if this reason has changed over the process of becoming debt free. Brittany and I were much more financially mature coming out of becoming debt free than going into it. We had more knowledge and wisdom, and as such, our goals changed a little bit. They got much deeper and much more specific.

2) Enjoy the Moment.
Slow down, take a deep breath and take everything in. You won. Try not to let the moment rush by you :)

3) Celebrate.
Do something to celebrate and mark this victory in your life. It should (hopefully) help you put a close to this chapter in your life and move onto the next one. Brittany and I drove to Tennessee to do our debt free scream in Dave Ramsey’s office as our celebration.

4) Fully Fund Your Emergency Fund (if you haven't yet).
So Dave Ramsey recommends people have $1,000 as their starter emergency fund, then after becoming debt free, fund it up to 3-6 months of expenses. We personally felt $1,000 was too low for us, so the entire time we were paying off debt, we had anywhere from $2,500 to $5,000 in our emergency fund. Fully funding your emergency fund is extremely important though, because you could easily get put into a bad financial spot if something big and unfortunate comes up and you lack the cash reserves to pay for it. We think of an emergency fund as just a buffer between us and life.

5) Figure out your Goals for the Future.
People with goals succeed because they know where they're going. Earl Nightingale once said this and we wholeheartedly agree. Goals are important and give your life a direction. Make yours big!

6) Develop a Plan to Reach Your Goals
This will have to be specific to you. The baby steps are a pretty good general guideline if you're having trouble.

7) Take a Risk. Get Out of Your Comfort Zone a Little
Do something you've wanted to do for a while, but have maybe been putting off because you were becoming debt free. This is what really put Brittany and I on the track we're on now.

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~~GEAR WE USE~~

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Intro Music:
Track: Marin Hoxha & Caravn - Eternal [NCS Release]
Music provided by NoCopyrightSounds.

Outro Music Provided by:
YouTube Library - Foundation
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[MikeandBrit]

Important note: when we reference our story of becoming debt free, we’re talking about the process we went through 8 years ago to pay off $120, 000, and the subsequent 5 years after that. We're looking back on that time period. We currently have a mortgage on our house. But we are debt free besides that.

[logen]

I was 20k in credit card debt, not a lot by some people's standards but it was enough to give me anxiety day-to-day. I finally got out of it 16 months ago. I have an emergency fund now, and am now saving for a house. I watch these videos for inspiration.

[gsford]

I just became debt free this weekend. Saving up the emergency fund now. Thanks for the advice, definitely looking forward to the future.

[richardhay]

Glad Brit is talking more and becoming comfortable doing so!

[Itallnew]

Completely debt free now including our home. Thinking about our next home but really would love to pay cash for that one too, so it might take a while. Especially with home prices climbing so high!!

[stevedrawdy]

After finding Dave Ramsey I paid off $14, 919 in just under 6 months. 4 months later my emergency fund is fully funded and now saving up for a down payment on a house. I can't believe just 10 months ago I was living paycheck to paycheck and now I have no debt and a healthy savings. Love your channel and love hearing Brittany getting more involved in the videos! Keep it up!

[bluecrystal]

Paid off 11K in student loans as of December 2021. Good way to end the year! Now continuing building my emergency fund and decide my next goal!

[nilo]

I been debt free 2 years ago after paying off my house.
I just cash a Car for my son who is graduating.
It feels real good,

My next plan is Financial freedom.
Hoping to buy several rental properties and hopefully I can stop working.

[SamSung-jvjm]

Im debt free now and am exhausted. Just starting to save for my 6 months emergency fund. After that I will be saving for a car so I can get a better paying job. Then I will be saving up to go back to college. Most of this will be done in 2022/2023. Hopefully I will have a degree and a well paid job by the time I turn 40yrs old (2026).

[HawaiiOH]

I am just now debt free and also live on Oahu. I know the feeling of freedom you are feeling 💯. I plan on working and saving for the next 7 to ten years to buy a sail boat and start sailing around the world. Freedom here I come!

[craftswithlizzy]

I love your video! My husband and I will pay off our house next month! It cost 255, 000 and we got the mortgage a little over 2 years ago! I am in my 30's.
What's next?
Your video has encouraged me that by paying off our house, we can accomplish any goal in life. Whether that be losing weight, writing a book, or becoming a millionaire. Anything is possible. Small steps taken together push us miles ahead.

One side note, never underestimate the blessings in paying tithes and volunteering for your church. I believe wholeheartedly, where we are today is because God blessed us and gave us wisdom in how to handle our finances.
He led us to Dave Ramsey and gave us the drive and desire to become debt free.
I hope my story encourages each of you. If we can pay off our house, you can too!

[danikeebler]

I am paying off $21, 000 worth of credit card debt. To some it doesn't sound like much, but it feels like a black cloud over my head. It feels as if it is a self punishment. I need to be focusing on retirement and a plan B if/ when throws a curve ball at me. I need to get these banks off my payroll. Thanks for the encouragement.

[jonathansanchez]

Hi guys!. Just an update, i did pay off my car off. Now we are debt free!! 40k in 18 month...And honestly i dont feel complete/finish..im more of let go after another chapter right away. And wife is YES! LET CELEBRATE!....you right once we clear debt enjoy! Relax a bit and celebrate!!

[walkerb]

My wife and I became debt free about 15 years ago. We’ve always lived beneath our means and been extremely fortunate from an income perspective ($500, 000+ per year), so it wasn’t as hard for us as it is for many. That said, the joy and exuberance we felt was the same. 15 years later, it still feels amazing. Plus, when the world and economy go on the skids like we’ve witnessed in the last few months, it doesn’t even phase us. The peace of mind you have when 100% of your paycheck is truly ‘discretionary’ is hard to explain.

[mayfair]

Just found your channel this month -- so inspiring! I'm deep into Baby Step #2, but already daydreaming about what's ahead. This video was soooo helpful and already is pushing me to dream a bit bigger. Such a great adventure. Thank you for sharing your experiences with all of us!

[anaadventures]

this video really motivates me to share my debt free journey. I got out of credit card debt after maxing out 5 🤦‍♀️my husband and I have our cars paid off (recently) 🙌🏼 and now we're talking about refinancing to a 15 year mortgage. ALSO if you're reading this and you haven't got a mortgage loan, do the 15 year! our realtor said oh it's probably better to pay more than have to worry about not making the payment. 🤦‍♀️ not true and the amortization on a 30 year is horrible. good luck everyone

[fernandomen]

Wow great story. i started my debt free journey down 28k in the hole back in june 2020. its down to 20k now. keep up the good work by motivating others to make changes in their lives!!!

[sedalemccall]

Can I just say as a new subscriber, Mike's T-shirt game is underrated. The Bazinga is my favorite.
These are great tips! I need to think about this more. It's hard when you're so focused on getting that number down to even see a world where you're debt free. But I'm getting closer!

[ryanroman]

Wife and I are going through the same process now. $12, 000 of credit cards last year paid, paying her new car off next month. Leaves us with two student loans to tackle and we will be free :)

[qmakesithappen]

Your story never gets any less inspiring! Great reminders and tips as well you two! Congrats on all the YouTube success you're seeing, well deserved! 😁🏁