Effectively managing outstanding debt is the first step on the road to financial freedom. You’ve set yourself a budget, you’ve stuck with the plan, and you’ll soon be debt free. Now what? Take what you’ve learned and begin working towards a richer future.

Follow these six steps and you will soon be well on your way to easy street:

1.  Know Your Situation: Take the time to understand exactly where you are at financially. What is your total income? What are your debts? How much is left over after you pay bills? Using a spreadsheet or other type of software tool to map these numbers out in a “Personal Finance Sheet” makes it much simpler to identify how much you need for monthly expenses, and how much you can afford to put away for future investments or savings.
2. Set Goals for Your Future: Clearly define both your short- and long-term goals. Want to pay buy a $25,000 car in the next two years? How about retiring by 55 with $1 million in savings? The key here is to capture your goals somewhere and refer back to them periodically. Keep in mind that any goals you set should be realistic, specific, measurable, set within a certain timeframe, and actionable.
3. Explore Alternatives: No one is saying you need to continue down the financial path you are currently on, so what’s the harm in taking a look at alternative routes? When exploring your options you can choose to do one of four different things; stay the course, expand your strategy, modify your strategy, or adopt an entirely new strategy.
4. Evaluate: Now that you’ve identified the alternative strategies, evaluate the feasibility of each one and how it fits into your personal finance plan. The important thing here is to identify which options you can believe in and work towards.
5. Act: Now that you have your strategy mapped out it’s time to act. Begin by implementing the first actions identified in your goals, and go from there. If you find you cannot act on your chosen strategy for financial or other reasons, it may be time to take a step back and reevaluate the situation.
6. Measure: In order to know where you are at with your goals and to make projections for the future, you need to know how your financial strategy is working. Failure to measure your results frequently can cause you to lose sight of the goals you set up at the beginning of your planning.

Keeping a keen eye to the future through the use of these six steps will ultimately lead you to greater financial security. With a little work on your part, you can soon be living the good life — golf clubs and Cadillacs.

This article is for informational and educational purposes only.  It is not intended to provide legal, tax or financial analysis.  Please consult your attorney, accountant or tax advisor if you have legal, financial planning, or tax related questions.

Now that you have your financial problems well in hand and are nearly to the point of being debt free, it is a good time to begin thinking about your financial future. You have made sacrifices, changed your lifestyle, and allotted a significant portion of your monthly income to settling your outstanding credit card debts. With the lessons you have learned, and your new ability to budget and save on a monthly basis, you can begin structuring a retirement plan to guarantee financial independence into your golden years.

One great way to begin saving towards retirement is to set up a Roth IRA personal retirement account. Roth IRAs (or Individual Retirement Accounts) allow you to set aside after-tax income up to a specified amount each year. Earnings on the account are tax-free, and tax-free withdrawals may be made after age 59 and a half. Funds are used in much the same way as traditional investment programs, and can either be managed by your selected investment manager, or managed personally, whichever suits your individual needs.

 Setting up a Roth IRA account is fairly simple and straightforward. The first step in the process is to identify exactly where you should open your account. Many financial institutions offer IRAs, each with its own strengths and weaknesses. It’s important to search for a company that suits your needs. Questions to keep in mind when researching IRA offerings include the following:

•  Is there a minimum initial investment? Minimum contributions?
• What sorts of fees are assessed to the account?
• Does the company offer automatic contributions?
• What investment options are available? Can you invest in stocks? Mutual funds? Real estate?
• How reputable is the provider?

 If you already work with a financial advisor, they can assist you in selecting an appropriate financial institution to work with. A good starting point is the three leading American investment institutions — T. Rowe Price, Fidelity, and Vanguard. These large investment firms have more investment options than smaller institutions, and can support both aggressive and conservative investment plans.

 Actually setting up the Roth IRA account involves little more than filling out a detailed application (similar to a credit card application). You will need your social security number, banking information, and funds to cover an enrollment fee and initial investment into the account. Automatic fund transfers can also be selected to automatically transfer funds from your bank accounts into the Roth IRA each month, making investment that much easier.

 The only thing to do now is to sit back and watch your investment grow.  

 This article is for informational and educational purposes only.  It is not intended to provide legal, tax or financial analysis.  Please consult your attorney, accountant or tax advisor if you have legal, financial planning, or tax related questions.

With the New Year nearly upon us and your debt settlement program nearing completion, it is a good time to begin thinking about living a debt free New Year. You are starting a new chapter in your life. You will soon be free of the leash credit card debt has put on you, and the future is truly bright if you remain responsible with your finances.

 The lessons you have learned and the skills you have implemented while settling your debt are the keys to living a debt free New Year. Here’s how:

1. Use What You’ve Learned: From developing a strict monthly budget to paying yourself first each month, take what you have learned while enrolled in the DMB debt settlement program and continue to effectively manage your finances. Knowing exactly how much is coming in and going out will make it much easier to stay on top and avoid future debt problems.
2. Continue Responsible Spending Habits: Avoid the temptation to slide back into your old spending habits. Use cash for everything you can, and carefully evaluate possible credit card use prior to making the purchase to make sure it is absolutely necessary.
3. Establish an Emergency Fund: Make sure to place at least 3-6 months worth of living expenses aside to cover future emergencies such as auto and home repair, medical costs, and unemployment. This will eliminate the need to rack up debts on your credit cards when life throws these little curve balls your way.
4. Save! Save! Save!: Clipping coupons, decreasing your homes energy usage, and getting rid of unused items at yard sales or online are all great ways to put some extra money back in your pocket and avoid credit card debt. Think of ways you can continue to reduce your monthly expenses and save money; chances are you will be able to think of quite a few!

Now that the turkey and all the fixings have been cooked and you’re ready to dig in with your friends and family, don’t forget that you have a lot to be thankful for this year. In addition to good health and other blessings your family may have received, don’t forget to give thanks for your upcoming financial independence. While passing the cranberry sauce and gravy, thank yourself for taking control of your credit card debt.

You have a plan while many others don’t. You are working with a debt settlement professional to take charge of your debt problems. You’re placing money in an F.D.I.C. insured special purpose savings account that is being used to negotiate favorable settlements on your outstanding accounts, and you’re beginning to think there is life after debt.

You are on track to becoming debt free while others don’t even know if it’s possible. The finish line is in sight. Soon your credit score will be on the rise, and you will be able to use your new money management skills to put money away for that new home or car.

Your children have a brighter future now too. With your debt settled, you can begin saving for that big trip to Disneyworld, or set up a structured savings account to prepare for college tuition expenses.

So take the time this year to thank yourself for making the decision to manage your debt problems. The grass truly is greener on the other side of debt, in fact, the peas and broccoli look a little greener too…

Wow, it is almost over. The months of budgeting, saving and living a frugal lifestyle will soon leave you debt free. It wasn’t that long ago that you thought your financial situation was hopeless, but you have successfully fought back against unfair credit card practices and taken control of your finances. Now that you are in the home stretch of your debt settlement program, the trick is to remain focused. Continue saving your required monthly settlement amount, and if possible increase your savings amount in order to complete your program ahead of schedule.

But just because you will soon become debt free doesn’t mean all the hard work is over. Becoming debt free is merely the first step on the road to financial success. There is still some work to be done in order to guarantee a prosperous future. Here’s what you need to do:

1. Remember What You’ve Learned: Be sure you don’t slide back into your old spending habits. Remember that credit cards have as many negative attributes as they do positive, and make sure you use them responsibly.
2. Continue to Budget Your Finances: Continue to map out your monthly finances and savings amount. Use the money you were placing towards your debt settlements to begin building up your savings or start looking into investments. Start small and contribute every month. You will be surprised at how quickly your money will grow.
3. Start Rebuilding Your Credit: The years of credit abuse and your debt settlements have most likely left you with a poor credit score. Consider consulting with a reputable credit repair company to begin rebuilding your credit.
4. Treat Yourself: After so many months of living a frugal existence, it is time to treat yourself, your spouse, and your kids to a weekend getaway or a nice dinner at your favorite restaurant. You deserve it. Just remember to pay cash and leave the credit cards at home!

If you are enrolled in a debt settlement program to settle your outstanding debt, you are taking control of your future, and taking the first step towards financial success. But what do you do when you become debt free? After we put away the plastic, how do we go about structuring a successful and profitable life after credit cards?

Here are four steps that can set you up for a successful future once your credit card debts are a thing of the past:

1. Pay Down Your Mortgage: Most people don’t view a mortgage as a debt, but rather as an investment. Technically, it is still a form of debt. And interest rates on home mortgages can make paying off the actual principal amount extremely difficult. Send the mortgage company as much as possible each month to ensure that you are paying down the principal as opposed to pure interest. The sooner you can pay off the mortgage, the sooner you can be entirely debt free.
2. Increase Your Emergency Fund to 12 Months: Although the standard emergency fund is capable of covering 3-6 months worth of bills, increasing the fund to cover a full year gives you additional protection. This is particularly true in today’s tough job market, with many unemployed workers requiring 8 to 10 months or more to find a new position.
3. Purchase Adequate Disability Insurance: Viewed by many as a luxury they just can’t afford, disability insurance is a smart move to make sure you and your loved ones are taken care of in the event of an accident or illness. Select a plan that gives your family comfortable coverage without breaking the bank.
4. Begin Preparing for Retirement: You may think you are far too young to even begin contemplating retirement. The fact remains that the sooner you begin preparing for retirement, the better off you will be when the time comes. Many companies today offer employer-matched 401k programs, and the sooner you can begin to put money into these accounts, the sooner the lump sum can begin to steamroll and start to amount to a sizable amount.

This article is for informational and educational purposes only.  It is not intended to provide legal, tax or financial analysis.  Please consult your attorney, accountant or tax advisor if you have legal, financial planning, or tax related questions.