There are lots of “firsts” that are celebrated in life: your first report card, your first kiss, your first job, that first real paycheck, your first car, your first baby, a baby’s first step, your first house. Life is full of great firsts — and some great “lasts.”
Since this is the first month of a new year, many people are thinking of making resolutions so they can accomplish some highly desirable new “firsts.’ Two of the most popular New Years Resolutions are: losing weight and getting out of debt. We’d like to encourage you to make written goals, rather than just spoken resolutions. And if getting your finances under control is one of your goals for this year, we want to help you imagine the last time you’ll have to spend any of your hard earned money making payments on things you’ve already purchased.
Just imagine how you’ll be feeling as you accomplish some of these great “last time” experiences.
Last sleepless night worrying about the bills
Having a financial plan in place and making extra payments to reduce debt will do wonders for your sleeping habits.
Last credit card payment
No more surprises in the mail. No more late fees or interest. No more collection agencies calling. Join the minority of people who just refuse to use a credit card (or at least refuse to carry a balance).
Last car payment
Imagine the feeling you’ll have the next time you unlock the door of your car and realize that you own it all (or at least what’s left of it). Then imagine that you start saving to replace your faithful vehicle and that you never have to fill out loan applications ever again! No more 60-months of sending checks to the lender — you’re free from them — forever!
Last student loan payment
The deal sounded good at the time, and everyone else was taking them out too (over 66 percent of college students are taking out loans). But now that you’re married and your spouse has a student loan just like yours – it’s not so much fun. But imagine that you’ve taken all of the money you were paying on your credit cards and car (which are now paid off) and start attacking those student loans. The amount you owed will plummet and your hope will skyrocket. Pretty soon you’ll be making that last payment and you’ll be free of another financial burden and fully resolved that your kids will never have to experience the same struggle you did (no we’re not saying that you’ll pay ALL of their college costs). You’ll help and encourage them to get good grades and apply for tens of thousands of dollars of scholarships.
Last house payment
Having done this once before we don’t have to imagine it. We paid off our first house in 9 years and we’re so close to paying off this second one we can taste it (It’s been 12 years — a little longer than before because the house is much larger and so was the mortgage). Our goal for this year is that our mortgage will be completely and utterly annihilated. Be assured that the feeling is intoxicating and your ability to increase contributions to retirement and savings is hugely accelerated. Just imagine looking at your home and saying — we own it ALL (not just the front door or one or two bedrooms, but the whole enchilada).
Last paycheck
Isn’t this why most people are socking away money in retirement accounts? Imagine your last day at work. Sure there will be tears and you’ll miss some of the camaraderies, but you won’t miss the demands and the hours. Living the frugal life, keeping expenses down and building savings will bring you to this point in time sooner than you can imagine . . . or can you?
Paying off debt and then avoiding it like the plague will help you build a secure financial future. It may not be stylish or in vogue to be completely debt free, but then again neither is living frugally. Just because everyone else is spending like crazy and carrying around five or six maxed out credit cards doesn’t mean we have to join them.
If this “List of Lasts” appeals to you, don’t leave it to chance or your memory. Make a written list of the things you want to accomplish this year — a list of goals, not resolutions. Revisit this list about once a month throughout the year. Use it as a reminder of what matters most and go after it with a vengeance. There is a last time for everything, except for this one thing: You can be sure that this isn’t the last time we tell you that economizing pays big dividends!