So, you’ve settled your logbook loan. Now what?

Logbook loans are a popular type of lending policy because they are convenient and fast. However, paying back any type of loan can be a challenge especially if the person is unable to keep up with the payments. It can lead to sleepless nights and fatigue due to the borrower taking two or three jobs to pay back the debt. But after the debt is paid, how will things change?

It is common for people to come up with budgets and financial plans to stick to while paying off debts. This keeps them on track to spending right, and saving up enough money to pay debts. But after paying them all off, where should you direct the money you don’t spend for necessities? Save it. Don’t fall back into the habit of spending more than what you should to ensure you don’t fall back into debt again. If you have been able to limit yourself while paying your debt, then this attitude won’t only keep you off of debt, but help you save a big amount of money for the future.

Place a part of your savings in an emergency fund that you can easily access should there be an immediate and urgent need. However, make sure that it is only for purposes such as hospitalization or immediate payments that need to be made for school expenses, as an example. Keeping an accessible emergency fund prevents you from using your credit cards or having to borrow from others, and therefore keeps you away from debt.

Another thing you can do with your money is to start investing. Research and ask around on what good investments are available for your money, to earn more out of it. You can invest in stocks, bonds, and mutual funds to multiply your money and help you save up even more.

Don’t deprive yourself all the time. While this sounds a bit contradictory, it is important that you reward yourself every once in a while to enjoy the perks of being debt free, and being able to use your own money for it. Treat your family to a nice dinner, or even a vacation – but make sure that it doesn’t eat up all of your savings, that it does not come from your emergency funds, and most importantly, that you only do it once in a while. Just as it is difficult to get out of debt, it is a different thing to fall right back again.