My husband I decided to pay off all of our debt yesterday. We’ve been paying it down for years and it was finally a manageable amount to just pay off in one go. At one point between our cars and credit cards we had almost $40K in debt so I’m pretty proud. We’ve been sharing a house with his brother and girlfriend for the last three years to save up $ and pay debt and reached that goal.

They’re moving out in August so we’ll be on the hook for the whole rent amount ($2400/month). We live in western Washington about an hour outside of Seattle so this is pretty much the going rate for houses in the area. We don’t want to move into an apartment, we lived in one for 7 years. So our plan is to stay for a year or two and hope the housing market will die down so we can eventually buy (houses here are going for $500K for 1000 square feet).

Me: 33, $70K/year ($2100 biweekly after taxes and deductions). My job contributes 13% of my salary to my 403b (nonprofit), I put in about 4%. Definitely going to raise my contribution and also look into contributing to my Roth.

Husband: 33, $24/hour ($1400 biweekly after taxes and deductions). He’s an electrician apprentice and is studying to become a journeyman which will raise his salary a bit. He contributes 5% to his 401K so not a lot but now that we’re done paying down our debt he’ll raise his contribution as well.

We have $10K in savings, two decent cars that are paid off. Bills are nothing out of the ordinary except for our high rent. When we get closer to August I’ll start looking at houses to see if we can move somewhere cheaper.

Aside from putting more in our emergency fund and contributing more into our retirement accounts, what else should we do? We’ve been in some sort of debt, either student loan or cars or credit cards since we were 23 so this is a whole new world.

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Title Of post: Paid off all debt – Now what?
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