Money Matters: When that final debt payment hits and you feel that sweet release and are debt free, it feels like some astral force reached down and pulled that 800 pound gorilla off of your chest.

So naturally the urge to celebrate is as natural as your 14 year olds ability to sleep till noon on the weekends.

But here is the scary truth - A LOT of folks who pay off significant debt find themselves back in the hole within 12 months! It’s like escaping Shawshank only to go back and knock on the door.

Don’t treat your debt payoff plan like a fad yo-yo diet. Plan for what you’ll do post payoff.

Survey says: The amount of Americans in debt has increased since 2023 which could mean that despite those that do payoff debt, they end up right back where they started due to poor planning.

Here is what on that portioned plate today:

 😎 Our Favorite Resources
👍The Family Freedom Framework: Planning meaningful Post-Debt Celebration goals
👌 The 30-30-30-10 Budget Method That Stops Anyone From Rebounding Into Debt
🤷‍♀️ What’s up for next week

First time reading? Sign up here

Cool Links

Our favorite resources

👀ICYMI

Why Skipping the Library is Costing You $817+ a Year

📜Quote

“Financial freedom is available to those who learn about it and work for it.” - Robert Kiyosaki (Rich Dad Poor Dad)

🧠 Quick Reminder

Let us know how you liked the issue with the 1-click survey at the bottom of the page! It helps us bring you what you want.

Today’s Main Event

The Family Freedom Framework

So you’ve done it - that final payment has processed, and you’re officially DEBT FREE (or at least free of that ONE big nasty debt)! Crack open the sparkling cider and do your happy dance. I’ll wait…

Done? Cool, because now comes the tricky part.

You now suddenly have all this “extra money” each month that used to go toward debt payments. And lemme tell you, if you don’t have a plan for that cash, you’ll eat it up faster than a sugar crazed toddler facing a mountain of cookies.

It’s easy to start cutting loose after you pay down a massive amount of debt because you’ve just put yourself through something difficult. And I’m not here to tell you that you can’t have fun at all but instead to say, the work isn’t done.

Pick a satisfying reward to do with the family but then start building a framework to make sure you stay in the position you sacrificed for.

Setting Celebration Goals

Instead of letting that “extra” money disappear into wasteful consumption, try this approach instead:

Immediate small celebration: Allocate 5% of one month’s former debt payment for an immediate family celebration. Maybe a trip out to dinner and the movies (which we all know is a nice chunk of change).

3 month family goals: Choose ONE meaningful family experience to save for over 3 months. Let everyone have input. Try and make it a trip that the whole family can have as a core memory.

1 year larger goal: Set a more significant family goals that would take about a year to fund with your former debt payment. Big cruise or a trip to the Grand Canyon.

Emergency Fund Building: Allocate at least 50% of your former debt payment to building and strengthening your emergency fund until you have 3-6 months of expenses saved.

Start Investing in a Roth IRA: Talk to a financial advisor about investing options and start looking at your future. Roth IRA’s are a good place to start for anyone.

Key takeaways: By planning these celebration milestones as a family, your create anticipation and purpose for your newly available cash.

Plus, the kids learn that financial freedom isn’t about buying whatever whenever, but about intentional choice that bring lasting joy.

12 Budget-Friendly Family Celebration Goals That Won’t Break the Bank

Not sure what kinds of goals to set? Here are some ideas that have worked for my family and friends:

Quick Wins (1-3 months of saving):

1. Family Game Night Upgrade Cost: $100-150 Instead of just a single celebration dinner out, invest in 3-4 quality board games that the whole family can enjoy for years. Add special snacks and make it a monthly tradition.

Family strategy: Let each family member research and pick one game they think everyone would enjoy. The Tiny Epic Games are some of our favorites.

2. Backyard Camping Setup Cost: $200-300 A quality tent, some basic gear, and string lights can transform your backyard into a staycation destination for years of use.

Memory boost: Create a special "camp menu" with foods you'd only eat while "camping" to make it feel extra special.

3. Local Tourist Day Cost: $150-250 Research all the tourist attractions in your city that locals never visit. Pick 2-3 and spend a day seeing your hometown through new eyes.

Pro tip: Call attractions and ask if they have "local resident" discounts—many do but don't advertise them!

4. Family Cooking Class Cost: $100-200 Many community centers or grocery stores offer family-friendly cooking classes. Learn to make something completely new together!

Bonus value: You gain skills that can save you money on takeout for years to come.

Medium Goals (4-6 months of saving):

5. National Park Adventure Cost: $500-800 Our national parks are INCREDIBLE values. Entrance fees are minimal, and camping keeps lodging costs low.

Budget hack: The "Every Kid Outdoors" program gives 4th graders and their families free access to all national parks for a year!

6. Family Membership Package Cost: $300-600 Annual memberships to zoos, museums, or science centers pay for themselves in just a few visits and provide entertainment all year.

Family strategy: Look for places that offer reciprocal benefits with other attractions nationwide.

7. Start a Family Side Hustle Cost: $300-500 startup Use some of that debt payment money to start a simple family business—from a fancy lemonade stand to craft sales online.

Lifelong value: Kids learn entrepreneurship while you potentially create a new income stream.

8. Family Hobby Investment Cost: $400-700 Whether it's photography, hiking gear, bicycles, or art supplies, investing in equipment for a shared family hobby creates years of low-cost entertainment.

Memory builder: Document your family's progress in the hobby through photos or journals.

Big Dream Goals (7-12 months of saving):

9. Mini Family Vacation Cost: $1,200-2,000 Not a blowout resort trip, but a thoughtfully planned getaway within driving distance. Vacation rentals with kitchens help save on food costs.

Planning tip: Make the planning process part of the fun by researching destinations together and voting as a family.

10. Tech-Free Zone Makeover Cost: $800-1,500 Transform a space in your home into an awesome tech-free family hangout with comfortable seating, games, art supplies, and whatever else your family enjoys together.

Family strategy: Have each person design their "dream corner" of the space.

11. Family Learning Adventure Cost: $1,000-1,800 Has someone always wanted to learn to ski? Play an instrument? Scuba dive? Use your debt freedom to invest in a new skill the whole family can learn together.

Long-term value: These shared learning experiences often become core family memories.

12. Give Back Project Cost: Varies Sometimes the best celebration is helping others. Save for a family volunteer trip, sponsor a family in need, or donate to a cause that matters to you.

Heart factor: Nothing builds gratitude for your financial freedom like helping others.

The 30-30-30-10 Method That Stopped Us From Rebounding Into Debt

When we paid off our credit card debt, we immediately implemented this simple allocation method for the money that used to go toward debt:

30% to emergency fund building (until we had 6 months saved)

30% to retirement savings (we were WAY behind)

30% to our family goals fund (for the celebration items we discussed above)

10% for immediate "freedom dividend" (small splurges to prevent feeling deprived)

For us, that meant about $200 each month went toward meaningful family goals and experiences, while $65 gave us just enough "spending freedom" to not feel restricted.

The key was deciding this BEFORE the final debt payment cleared. Having the plan ready to go meant no decision fatigue and no opportunity for that money to vanish into the daily spending void.

Keeping The Debt-Free Train Rolling

Remember, the ultimate goal isn't just to get out of debt—it's to STAY out of debt while building the life you want. Here are some guardrails that helped us:

1. The 48-Hour Rule: For any non-essential purchase over $100, wait 48 hours before buying. If you still want it and it aligns with your goals, go for it.

2. The Monthly Money Date: Schedule a monthly check-in with your partner (and age-appropriate kids) to review progress on goals and catch any troubling spending patterns.

3. The "Is This Better Than Our Goal?" Test: When tempted by an impulse purchase, ask: "Would I rather have this, or be one step closer to our family vacation/game room/learning adventure?"

Remember: After debt freedom comes the REAL challenge—building wealth while enjoying life today. It's a balancing act, but having concrete family goals makes those daily spending decisions so much easier.

Bonus tip: Consider opening a separate savings account JUST for your family celebration goals. Watching it grow is super motivating, and it prevents you from accidentally spending that money on everyday stuff!

Until Next Time

What’s Up Next Week

Now that you've got a framework for celebrating debt freedom without sliding backward, next week we'll dive into "Thrift Culture, the underground economy helping Families Win BIG!"

Please let us know how we did today by clicking on the survey below.

Email us with any questions!

And as always…

Peace out,

Nico & the Hootsquad

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.