Why You Should Celebrate Every Little Success When Paying Down Debt

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Debt payment isn’t all about suffering. You’re more likely to stick to it if you give yourself the occasional pat on the back. 

It isn’t easy to pay off debt. In fact, I think it is one of the hardest financial goals to reach. First, you’re making sacrifices to pay back money you’ve already spent, which is different from saving up for something you want in the future. Second, people often get into debt because they don’t have enough money in the first place. This can make it harder to find spare cash to put toward debt payments.

If you’re on this journey, congratulations — taking that first step is a big deal. One powerful way to stick to your debt repayment plan is to celebrate each milestone you reach. Here are two ways those celebrations can help you along the road to becoming debt free.

1. If you want to celebrate milestones, you’ll have to set them first

Setting milestones is a big part of achieving any long-term goal. It’s hard to run a marathon without having mile markers along the way, because you can’t tell where you are in the race. Similarly, if you don’t break your debt journey down into manageable pieces, it can become overwhelming. Plus, setting goals gives you a reason to celebrate meeting them.

Start by looking at your budget and working out how much you can put toward debt payment each month. For example, you might calculate that you can put $400 a month toward your balances. Next, you’ll need to decide which route you’ll take, and what milestones you can celebrate along the way.

In terms of approaches, the debt snowball method is popular. This involves focusing on the smallest balances first and can give you a psychological win every time you pay one off.

Another option is the debt avalanche method. With this approach, you’d put your extra cash toward the debt with the highest interest rate, which will save you money on interest overall. The difficulty is that it can be hard to stay motivated if you have to start by paying off your largest balances.

If you go for the debt avalanche or — another option — decide to consolidate your debts into one, why not give yourself a monthly “I’m on track with my debt” treat? You don’t need to wait until you’ve paid off a specific balance. Instead, set a date in your calendar to celebrate meeting your payment targets. Plan out affordable ways you can honor those small victories.

2. Celebrations can change your mindset

Emotions can play a big part in how we deal with our personal finances. If you see paying down debt as a chore and resent putting extra money toward it, it will be even harder to stick to your payment plan. A celebratory mindset is about flipping the switch and making the journey as enjoyable as possible.

The big picture is that your debt payments are a tool to help you build financial stability. This isn’t about suffering and restricting your life. It’s about building financial freedom and eventually reaching a stage where you don’t lose a large chunk of your paycheck to debt repayments. That’ll mean you have more in your bank account for fun things. But sometimes it’s hard to focus on the end goal, especially when there are so many demands on your bank account balance in the here and now.

That’s where our celebrations come in. Recognize that you’re doing something difficult and reward yourself for the progress you make. Dealing with money doesn’t have to be something you dread. You’re taking the wheel on an important vehicle in your life, and that’s a reason to be proud.

Celebrate in a way that’s right for you

At the risk of overusing the marathon analogy, another thing that keeps people going over that long distance is having support from the crowds. Think of paying down debt as your personal race and allow yourself to celebrate along the way. If you’ve tried before but haven’t kept it up, try to think of those as practice runs.

Depending on how comfortable you are talking to close friends about your debt payment journey, you can involve them in your mini celebrations. But you can also find ways to mark your milestones yourself. There’s no right or wrong way to celebrate, beyond that it isn’t about taking a $1,000 vacation or spending money you can’t afford.

Think about activities that are meaningful for you and won’t break the bank. For example, I celebrate my financial milestones with a cake from my favorite bakery or by cooking dinner for friends. You might opt for a walk in the park or a nice glass of wine. It’s all about finding affordable ways to pat yourself on the back for the progress you’ve made.

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