Paying off your vehicle has never felt so good!
Keep that momentum up and keep setting these type of goals. Here are 6 money mistakes to avoid if you plan to continue progressing financially.
#1 – The Purchase of A New Vehicle
Number one on our list – the purchase of a new vehicle.
The last thing you should be doing is taking delivery of a new vehicle weather it be financed or leased.
You just got out of debt! Don’t go back. By now you should be feeling tired from how long you were making monthly payments.
Breath, and enjoy not owing a lender anything for your car anymore. Congrats! You turned a liability into an asset.
#2 – Splurging Your Freed Income
Don’t splurge your newly freed income.
Instead, spend on yourself in moderation. Enjoy your money! But be sure you’re wise and conscious about your spending habits.
Right now is the perfect time to use this additional income to tackle debt or save and invest.
#3 – Not Paying Off Your Debt
If your car loan was not the last open account on your Credit Karma account, then you should be paying off the remaining of your debt.
Use the disposable income you’ve freed up to allocate it towards another debt.
The worst money mistake you can make is not utilizing this money as a tool to allow you to progress financially.
Avoid spending it on exterior mods and other unnecessary means. Unless you’re debt free, make sure you move this money to another account using the snowball method to pay off all your debt.
#4 – Delaying Maintenance
Money mistake number three is delaying your vehicles maintenance.
You’re most likely to damage your vehicle and your pocket if you delay taking care of mechanical issues. This includes regular maintenance such as oil changes, tires, alignments, etc.
Avoid paying more money out of pocket long term by taking care of preventative maintenance now. Your wallet will thank you down the road.
#5 – Neglecting Your Vehicles Appearance
Don’t neglect your vehicles appearance. Keep her washed and vacuumed to save you on detail repairs that can lead to wear and tear.
Now that your vehicle is paid off it would be wise to continue investing in your cars appearance. The best decision is to keep up on the longevity of your vehicle and keep it running for many more years to come.
Keeping up on your vehicles appearance serves as a means of motivation. Don’t let your vehicle direct you towards the money mistake of potentially purchasing another car.
#6 – Settling With Your Current Insurance Provider
One thing you should do after you close your car note is to request quotes from different insurance providers.
It wouldn’t hurt to see how much money you can save monthly on your vehicles insurance.
If you can’t get a better quote, see if you can get a better deal on your vehicles current coverage policy. Your agent should be able to help out.