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.

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.

Now that you are close to completing your debt settlement program, it is a good time to begin thinking about life after debt. That 600 pound gorilla is off your back, and you may not have felt this confident about your financial situation in many years. You have learned how you got into trouble in the first place, you have identified ways to find savings and efficiencies in your monthly spending, and now that you are near being debt free you can begin actually accumulating wealth and working towards whatever lofty financial goals you have set for yourself. Want to have $100,000 in the bank within the next 10 years? No problem. You already have the knowledge to make this happen, now all you have to do is put that knowledge to work for you.

The first step in accumulating wealth is to make sure you don’t slide back into your old spending habits. Reckless credit card abuse and failure to budget your monthly finances will only guarantee that you wind up in the same situation you were in before you took back control of your finances. Remember to use cash for everything you can, pay as much as you can afford on your monthly credit card bills rather than just the minimum, live within your means, and only buy what you can afford.

Remember all that talk about structuring a strict monthly budget, setting financial goals, and sticking to the plan? These practices have gotten you this far, and continuing to keep a close eye on your finances will allow you to begin using the money you have been putting towards your debts for savings, stocks and investments, retirement plans, or college savings programs.

Additionally, you should consider seeking professional help to meet your financial goals. There is a reason that most financially successful individuals use financial advisors to manage their savings and investments. Responsible financial consultants can help you identify a recommended path to meeting your goals. They work for you, and in most instances, the more money they make for you, the more money they make for themselves, providing incentives to make sure their clients are financially successful

So take what you have learned and begin preparing for a life of wealth rather than a life of debt. Utilizing the tools and strategies that helped dig you out of debt is the key to creating a prosperous future for yourself and your family.

In today’s economy, having a million dollars in assets (or being a millionaire) does not quite mean what it once did. Our traditional visualization of a millionaire tends to depict people living in broad, expansive ocean front homes driving exotic cars whose names we cannot even pronounce. In reality, your next door neighbor in the 3 bedroom colonial driving a 10 year old pickup truck could represent today’s new class of millionaire. And even though a million isn’t what it used to be, it is still the benchmark to which most of us aspire financially.

The life experiences that have led today’s new class of millionaires to their current financial status are as unique as they are numerous. There is no single “magical secret” these people have employed to get where they are today. But there are a few simple strategies that can help you steer your financial future towards millionaire status. Here’s how:

1. Increase Your Income: This is a no brainer, but still needs to be said. If you can increase your income while living the same lifestyle you have become accustomed to during your debt settlement program, you stand a greater chance of increasing your savings – the first step in becoming a millionaire.
2. Live Within Your Means: Buy only what you need and can afford, and you have a much better chance of becoming financially successful. And don’t forget to leave the credit cards at home if you think you may be tempted to use them for unnecessary items or impulse purchases.
3. Save Money: If you make a reasonable income and live within your means, you will most likely have money left over at the end of the month. Remember to pay yourself first, setting aside a reasonable portion of your income directly into a savings account. Think of this account as the foundation on which you will build your financial future.
4. Invest Wisely: You don’t have to be a Wall Street tycoon to make wise investment choices. Although it may be a good idea to consult a professional investment counselor, the old adage of “Buy Low and Sell High” still holds true. Also keep in mind that, with few exceptions, making money on investments does not happen overnight. The key is to hold on to your investments and ignore momentary fluctuations in the market. Over 20 years, just about every investment will yield positive gains – usually incredibly large gains. So remember that you are in it for the long haul, and don’t sell or trade investments at the drop of a hat in response to temporary changes in the market.
5. Stick With the Plan: This is the one secret that the majority of millionaires have used to reach their financial goals. There will be good years and bad years, but in the long run sticking to your plan will undoubtedly result in positive financial gains.