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.

We are all familiar with the American tradition celebrating the 4th of July. On this day each year, we remember how our country’s founding fathers and a handful of colonial soldiers stood up against unfair taxation and ultimately defeated the most powerful standing army in the world.

If you are enrolled in a structured debt settlement program, you have another Independence Day to put on the calendar as well. This is your “Financial Independence Day”. This is the day your outstanding debt problems will cease to exist, leading to a greater sense of financial responsibility.

You’ve worked hard to put money aside each month in an F.D.I.C. insured special purpose savings account, and your debt settlement professional has been working hard to negotiate favorable savings on your accounts. The end of the road is in sight. So regardless of whether your program is scheduled to reach completion in 3 months, 6 months, or even a year from now, place it on your calendar today and get ready to celebrate.

Fire up the grill, stock the coolers, prepare the fireworks, and invite your friends and family. Tell them that you have stood up against unfair interest rates and late fees, and that you are celebrating your independence from today’s powerful army of creditors and collection agencies.

1. Try to save approximately 15 percent of your salary each year toward retirement. These savings should include monies that your employer might match toward your contributions in addition to monies you invest or contribute to IRAs or other investments. Saving at this 15-percent savings rate will generally result in assets that will produce about 50 percent of your current salary.
   
2. When calculating your potential retirement income, take into account your investments, Social Security, pensions, part-time employment and other income sources such as rental property.
   
3. If you think you’re lagging behind, try to increase your annual contributions above 15 percent and consider putting annual raises, bonuses, cash gifts or inheritance money into retirement investments rather than spending these windfalls.
   
4. You can avoid or defer taxes by contributing to IRAs or investing in tax-deferred annuities. Talk to a financial planner for assistance.
   
5. If you’re not satisfied with the size of your retirement nest egg when you approach age 65, consider delaying retirement for a few years.
   
6. If you work for an employer offering a retirement plan such as a 401(k), 403(b), 457, SEP-IRA or ESOP, maximize your employer’s matching funds.
   
7. If you change jobs, do not cash out of your retirement plan. Roll the proceeds over into the new company’s retirement plan or into a rollover IRA. If you’re approaching age 55 and wish to retire early and begin taking withdrawals, then leave it where it is. You can tap a company retirement plan at that age, but would have to wait until age 59 ½ to withdraw penalty-free from an IRA.
   
8. Diversify your portfolio among many asset classes. This helps you maximize your return on investment while decreasing volatility.
   
9. This is tricky, but try to determine what percentage of your current income you want to live on. Although 70 percent is sometimes given as a rule of thumb, there is no set amount, and it will vary from individual to individual. Keep in mind that although you may be able to decrease certain expenses (debts) such as mortgage and car payments, your medical bills may increase.
   
10. Finally, when you do retire, plan on withdrawing only about 4 percent of your savings during the first year. Then, give yourself a cost-of-living raise each year by increasing the amount withdrawn in the first year by 3 percent. This low withdrawal rate will increase the probability that your assets will last for 30 years.