In order for us to Dream. Travel. Live. Repeat… without any issues, sometimes we need to take a journey through our finances. If you’ve read how debt destroys dreams, then I don’t have to remind you the type of hold it can have over your life. Not to mention the amount of stress it brings with it. According to a 2013 study people in debt are three times likely to have mental health problems than those who are not.
The best way I have found to tackle debt is to not ignore it. Trust me; a lessened learned (and paying) the hard way for. In order to get a clear understanding, you have to write it down. It probably won’t make you feel good at first, but at least you’ll have perspective, and nothing is better than clarity. Once you have written everything down, now you can figure out which method works the best for you.
With this method, you start by listing all of your debts from smallest to largest. You then pay the minimum balance on all of them, except the smallest one. This is the one you attack!! Continue to add any extra money you come across; it doesn’t matter the amount.
When that debt is paid, you then move on to the next one. Hence, the name snowball. As you start to gain momentum, you’ll notice how those small wins can really be a huge motivator.
With this method, you start by listing your debt according to interest rates from highest to lowest. You then pay the minimum balance on all of them; except the one with the highest interest rates and yes, attack!
This method is effective because it saves time and money over the course of your debt free journey. The only drawback is there aren’t really small wins. This way may “seem” like it’s taking forever, but if you’re looking for a cheaper route overall, this may be the method for you.
I’d like to consider this method, “the Outlier’s method”; picked up from a book, “The Richest Man In Babylon“. A total game changer and a definite must read by the way! (Click the book to grab your copy, after you finish reading of course)
With this method, you can save money, LIVE, and still pay your debt. Start by taking your total income for the month and pay yourself FIRST 10%. Next, list out all of your bills (wants) and MAKE them equal 70% of that same income. The remaining 20% can now be used to pay debt. Still paying the minimum on on all of your debts except one. Target and attack one!
Thoughts to myself like…
Now I understand all households are different, so you decide the one the one that works for you. Regardless of which method you choose, you’re already a step closer just by deciding to eliminate it. Stay the course and stay on the journey because it’s right around the corner. As soon as you decide to tell your money where to go, being a good host. Things will change!
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Hey Heyy 👋🏽 It’s Friday so you know what that means #financiallyfreefriday In order to Dream. Travel. Live (a better life). Repeat… we have to take a journey through our finances OFTEN! .. “I am whatever I say I am and if I wasn’t then why would I say I am “ – Eminem .. Starting Student Loan Debt: $52,231.00 Today’s Student Loan Debt: $52,221.00 This week is a much better week!! Although this isn’t a pay week I still managed to slide $10 towards one of my smaller “no interest” student loans. .. I recently had a conversation with a a great coach who said to me she noticed when I’m talking I say the word “try” a lot which is a huge detriment to my abilities .. You see I considered “try” my “get out jail free” card. It saves me from possibility of shame from failure bc after all I said “try”. I realized in that moment that was no longer how I wanted to operate. No more try I AM DEBT FREE!! .. I had to have this attitude when it came to my debt free journey bc this 💩 is rough on your mental. Last weeks lows are this weeks highs. Although my student loans are higher, bc of the work I’ve been doing with my debt, my credit score has increased (Insert praise break)‼️‼️ .. Meanwhile my rainy day @acorns investment fund is still growing 📈 .. #thetraveloutlier #whentravelmeetslifestyle #travelcompany #lifestylebrand #travelandlifestyleblog #onlinebookstore #bookwormuniversity #promoteindividuality #fostercreativity #encourageexploration #debtfreejourney #howtoeliminatedebt #snowballmethod #roadtofinancialfreedom #entrepreneur #afroeconomics #Iam #lasvegas #dreamtravelliverepeat #anoutliersapproach #shoplikeanoutlier #makeitmakecents #DTLRCollextion