{"id":4430,"date":"2018-09-03T03:13:41","date_gmt":"2018-09-03T07:13:41","guid":{"rendered":"https:\/\/marriagekidsandmoney.com\/?p=4430"},"modified":"2023-03-28T15:35:57","modified_gmt":"2023-03-28T19:35:57","slug":"im-debt-free-now-what","status":"publish","type":"podcast","link":"https:\/\/marriagekidsandmoney.com\/podcast\/im-debt-free-now-what\/","title":{"rendered":"I’m debt free. Now what?"},"content":{"rendered":"

Our first question of the month is from Brian from Michigan<\/strong>: <\/span><\/p>\n

Hi!<\/span><\/i><\/p>\n

After reading one of your millionaire interviews<\/a>, I found your debt freedom story and your path sounds like mine. <\/span><\/i><\/p>\n

My wife and I have gotten serious about paying off our debt after we learned she was pregnant 6 months ago. We are now nearing the debt-free finish line. Only two more months to go and we\u2019ll be student debt free, car debt free and credit card debt free \u2026 really all debt free outside of our mortgage. <\/span><\/i><\/p>\n

All in all, we\u2019ll have about $600 extra each month when we\u2019re done. Outside of going on a weekend getaway to celebrate (no drinking because of the baby *snap*), we want to keep building wealth. Any suggestions for the extra cash each month that will keep moving us forward?<\/span><\/i><\/p>\n

<\/p>\n

Thanks for putting together those interviews<\/a>. They are inspiring to read. \u00a0Thanks for your help. <\/span><\/i><\/p>\n

Brian<\/span><\/i><\/p>\n

\n

Solid debt crushin\u2019 Brian! Way to go! And congratulations on your upcoming fatherhood.<\/span><\/p>\n

It\u2019s really a fun conversation to have … What do you do with your money after you\u2019re debt free?<\/span><\/p>\n

I remember feeling so excited when we paid off all our debt<\/a>. The stress melted off my shoulders. I loved it.<\/span>\u00a0Brian, I\u2019m sure you, your wife and your new addition are going to love it too. <\/span><\/p>\n

Not surprisingly, I have 5 wealth-building considerations for you when you\u2019re debt free.<\/span><\/p>\n

\"woman<\/p>\n

1. Build Up Your Savings<\/b><\/h2>\n

I don\u2019t know exactly how much liquid savings you have, but given that your wife is pregnant and you\u2019re in “protect and grow the family” mode, it couldn't hurt to have more. <\/span><\/p>\n

Nicole and I have always felt good with our savings totaling 3 months of expenses<\/a>. Some people like a year\u2019s worth of expenses saved up and others like 6 months. There are even folks who feel fine with one month of expenses saved.\u00a0<\/span><\/p>\n

Find the flavor that works for you. <\/span><\/p>\n

There is no one right answer here.\u00a0<\/span>Honestly, there are only positives to having a large amount of liquid savings in my opinion.<\/span><\/p>\n

2. Reassess Your Insurance Coverage<\/b><\/h2>\n

Sometimes when we\u2019re paying down our debt, we limit a lot of our expenses to get the job done fast. Now that you\u2019re debt free (or nearing the finish line as you say), I would reassess your insurance coverage. <\/span><\/p>\n

Do you personally have term\u00a0life insurance, Brian? <\/span>If not, get some! <\/span><\/p>\n

I\u2019ll make an assumption that you\u2019re working and providing an income for you and your wife. If your wife lost you, she and your newborn baby would be in a rough spot. For a young healthy guy, you can more than likely get a very inexpensive rate on term life insurance<\/a> today.\u00a0<\/span><\/p>\n

I have a $1,000,000 policy and I pay about $55\/month. A smart and safe investment in my opinion. <\/span><\/p>\n

Not all insurance carriers are equal of course. Two companies that I like are Quotacy<\/a> and Selectquote<\/a>. They shop for the best deals on term life on your behalf.\u00a0<\/span><\/p>\n