Keep Up the Good Habits and Eliminate the Bad Ones
What do you think most Americans do after they’ve paid off a vehicle loan? If you guessed “spend it” you are correct but that’s not the best approach if you want to achieve financial independence.
It’s easy to lose focus on the big picture of our financial life plans when extra income appears in our budget after paying off loans or credit card balances. Instead of spending that extra cash that you’ve already gotten used to not being there, pretend it’s still not there and save it instead. Make “payments” to your retirement account instead of allowing lifestyle creep to hurt your ability to save. You’ll never miss the money because you’ve already gotten used to it not being there.
When you pay off an auto loan , consider keeping your vehicle for a few extra years before finding a replacement. You may even want to set aside some of your savings in a car replacement avoid so you are prepared when it is time to find another ride.