If you do have debts, create a repayment plan

If you do have debts, such as credit card loan, car loan, housing loan, study loans, etc, start planning which loan to pay off earlier and what to pay off 1st.

Make a list on the type of loan, interest amount in %, amount you need to payback, and look at how much you currently have. After deducting a basic 3 months worth of pay, if you do have anything left, look at which is higher, the highest loan interest or the interest that your excess money is generating you. If the loan interest is higher, use that money to pay off that particular loan first.

Plan which loan you wish to pay off, prioritize the one with higher interest rate to be paid off 1st. Set the deadline to when you plan to pay off all your debts. But for certain loans, it might be better to keep than to pay them off, i.e. housing loan. Why? Because for housing loan, the interest might not be very high, if the interest is low, and you can get better returns if you invest the money you intend to pay off your loan with, you should just keep that loan, and pay off just the minimal amount and earn on the difference in returns. (e.g. investment return % - housing loan interest %, as long as this is positive, you should just keep it.)

Think about it, don't just pay off all your loans for the sake of being debt free, unless you are not generating more money from your excess cash. :)

Reference: The Lazy Girl's Guide to Success: Financial Success, Step 4, Pg 124 - 126