Want to get out of debt fast? Then commit to the debt snowball.
You might be thinking, “Oh yeah, yeah, I’ve heard of the debt snowball. It makes sense – you pay off your debts one at a time until they’re gone. I got it.
No, you missed it. You missed it entirely.
How the Debt Snowball Works
The debt snowball is about more than just paying down your debts one at a time. There are three major elements to the debt snowball:
Your initial lump-sum contribution Your contribution each month Laying out your debts – from smallest to largest
And you know what? Interest rates have pretty much nothing to do with the debt snowball. Do you know why? Because paying off debt is 80% emotional and 20% logical. Paying off debt is more about immediate progress than it is about math. All you nerds out there, just trust . . . → Read More: How The Debt Snowball Really Works (Free Tool Included For YOUR Debt Snowball!)
No one wakes up one day and decides to go on a spending spree, ready to max out all their credit cards at once. While that might make a good reality show, it’s not the reason Americans owe $12.12 trillion in debt.
We can argue about “good debt” versus “bad debt”. But the truth is most Americans owe money month after month. And it’s dragging down our ability to build wealth.
Our own family owes a variety of debt. We’ve got credit card bills, car payments, and student loans. It wasn’t done lightly, but from a sense of necessity (real or not).
So why are so many people in debt? It’s because they react rather than prepare. They know they should be saving for a rainy day, but the sky sure looks clear right now! There’s no sense of urgency without an emergency.
Just as we study history to . . . → Read More: 5 Things That Throw People Into Debt (and How to Avoid Them)
“If you give a hungry man a fish, you feed him for a day, but if you teach him how to fish, you feed him for a lifetime.“ – Lao Tzu
When I think about what is required for financial success and how I can teach that to my kids, my head starts swimming. There really isn’t very much in my control when they leave home; however, I can do a few things early that will ensure my children have the right foundation.
Because three-fourths of Americans are living paycheck to paycheck. Student loan debt is at crisis levels. Credit card debt is a staple in nearly every home.
Advertisers are going to invest as much time and resources as possible to convince my kids that they need to buy their stuff. I need to spend as much time and resources as possible to ensure they know how . . . → Read More: How to Set Your Kids Up for Financial Success
Nobody will tell you this, but it seems to be an unwritten rule that the bigger the house, the happier life will be. In almost every case, I would argue that the opposite is true.
Your family, the laughs and giggles, the adventures, and all the spontaneous fun…they have absolutely nothing to do with how many bedrooms and bathrooms your house has.
5 Ways to Make Your Home a Blessing
I have lived in our home for just over five years. I bought it as a foreclosure for cents on the dollar, fixed it up, and have enjoyed the warmth of its shelter ever since. It’s not huge and it’s not overly fancy, but it is dry, paid for, and makes me smile every time I walk into it. This house is truly a blessing.
So how did we make it this way? How did we make our home a . . . → Read More: 5 Ways to Make Your Home a Blessing
“It’s only $250 a month!”
“No money down!”
“0% interest for 36 months!”
We salivate at the thought of sitting behind the wheel of that brand new, shiny, sleek, smells-like-heaven automobile…ahhhHHHhhrgh (I’m sorry, I couldn’t help but drool a moment).
How Many Years of Retirement Are You Wasting?
I’m with you. I absolutely love the feel, the sound, the touch, and absolutely the look of new cars (or boats, quads, snow sleds, wave runners – whatever it is that you fancy), but would I pay $250 a month to satisfy my childish cravings?
Not in a million years.
The True Act of Payments
Here’s what you’re doing when you decide to make payments on something:
**You look at that shiny car, check your pockets, and realize your only asset is pocket lint**
**You glance sheepishly at the salesman…**
“Ummmm, I’m sorry, I don’t have any money right now, but . . . → Read More: How Many Years of Retirement Are You Wasting With That Purchase???
Moment of honesty: I created this list of habits that make or break a debt free journey pretty easily. Can you guess why?
Because it’s MY list. I’ve messed up on each one of these items at least once. ::cough:: Definitely more than once.
Over the last several years, I’ve developed some stronger habits, which ultimately led to my husband and I getting out of debt when I was 25. However, living a life of debt freedom doesn’t end with a paid off credit card. It’s a lifestyle.
In order for my husband and I to stay strong on our debt free journey (since we’re back in debt with our first mortgage), there are some habits we’ll need to keep practicing. If you’ve been down this road, then you know what I’m talking about.
8 Habits That Make or Break a Debt Free Journey
The following is a list of . . . → Read More: 8 Habits That Make or Break a Debt Free Journey
I’m a huge proponent of dating your spouse long after the march down the aisle. This is especially relevant when it comes to finances due to the volatile money problems that arise between couples. If you’ve used a lack of resources as an excuse for not going on dates, I’m here to share some retro date night ideas that are designed to get you back out there and save you money.
“Retro” as defined by Merriam-Webster dictionary is: “Relating to, reviving and being the styles and especially the fashions of the past.”
So, what is a retro date night? Imagine you’re 16 again and you’re heading out for a date. What kind of budget did you have? Did your dad hand you a $20 before you left? Perhaps you saved up from your minimum wage job of flipping burgers, earning $6.25 per hour (or less – that was minimum wage . . . → Read More: 14 Retro Date Night Ideas That Will Save You Money
Oh the random financial complaints at work…
“An extra $1,000 a month? Ha! Wouldn’t that be nice.” “Nobody can possibly afford to stay at home with their kids anymore. It’s just not possible!” “So you just signed your life away on that mortgage? Don’t worry, everyone has debt.”
I find myself having to bite my lip more and more these days. Apparently, the more fiscally wise you become, the less you can relate to…well, anybody. But, if I were given the choice to either relate to broke people or to be insanely wealthy, I think I’d choose insanely wealthy every time, wouldn’t you?
How You Can Save Hundreds of Dollars a Month
The truth is, I used to have a broke mentality for quite a few years. I bought TVs, stereos, flashy cars – I thought I was pretty big stuff.
…And then I discovered that I couldn’t even afford . . . → Read More: How You Can Save Hundreds of Dollars (Free Budget Sheet Included!)
Do you want to be rich? Duh…Don’t we all? If you had the choice between earning $25,000 a year or $150,000, which would you choose? I think all of us would choose the later, hands down every time. The real question is, how do we get there? How do we become rich?
The answer is quite simple actually. I mean think about it. If you wanted to be an amazing athlete…let’s say, a basketball player. What would you do? Play basketball once a month and hope for the best?….No (this is, by the way, is how people in our culture try to attain wealth – by doing nothing and assuming they’ll get everything they don’t really deserve). Instead, you’d probably learn everything you could about the greatest basketball players of our time from every resource possible. And then do exactly what they did to get to where they are, and . . . → Read More: 10 Habits of the Rich You Need to Start…NOW!
I am sick to my stomach. I’m angry. I’m ashamed.
Burning flags? Setting fire to effigies? Blasting your vulgarities all over Facebook? How is this helping our country again? How are you solving our nations problems?
Oh, that’s right, I forgot. The government is supposed to solve all your problems. You have absolutely nothing to do with it.
It’s Up to YOU
In the past week, everything’s changed, but at the same time nothing has changed. We still have a President. There are still checks and balances in the judicial system that keep one man/woman from having unlimited power. And probably most importantly, this world will still not somehow be transformed by that supposed sole person in charge.
Are you concerned about your retirement?
Then maybe you should save up some money and invest instead of spending it all cars, restaurants, and vacations. Stop depending on Social Security. . . . → Read More: Want Prosperity? It’s Up to YOU!!