Step 7 Of 12 Toward A Debt-Free Life: Create A Debt Snowball

hipster man checks finances on computer while at trendy eateryYou’ve organized your debt, you’ve set up an emergency fund and you’re working on spending less. You’re now ready to start getting rid of that debt…for good!

Choose the debt you’d like to pay down first. Financial expert Dave Ramsey suggests starting from the smallest debt and working your way up. You can also choose to start with the debt that carries the highest interest rate. Either way, once you’ve paid down the first loan or line of credit, you’ll move onto the next and continue to work your way through all remaining debt until you’re completely debt-free.

For now, paying off this debt will be your top priority. Be sure to pay the minimum payments on all other debts, but any extra money you have at the end of the month goes towards the first one. Start with the minimum payments you were making anyways, and add the money that was previously going towards setting up your savings account to create your debt snowball. Whenever possible, try to add money to your snowball to accelerate your progress.

Doesn’t this feel great? You’re on your way to a debt-free life!

Your Turn:
Did you choose to start with your lowest debt or the one carrying the highest interest rate? Share your choice and your reasons with us in the comments.

Book Review: Everyday Millionaires: How Ordinary People Built Extraordinary Wealth–And How You Can Too

Everyday Millionaires How Ordinary People Built Extraordinary WealthMoney conversations can be super-depressing. Everything you read tells you that the “Great American Dream” has faded into oblivion. Everyone you talk to says that only the rich-born can get ahead and make it to the top. We ingest these lies without thinking twice. They become part of our belief systems and kill our ambition, effectively destroying any chance we have of becoming financially successful.

Get ready to read about the truth.
In Chris Hogan’s book, Everyday Millionaires: How Ordinary People Built Extraordinary Wealth—and How You Can Too, he destroys the most common millionaire myths that prevent ordinary people, like me and you, from achieving and maintaining financial independence.

Hogan is a #1 national best-selling author, the host of The Chris Hogan Show, and a dynamic speaker who lectures nationwide about personal and business money management. He also serves as a beloved financial coach and Ramsey Personality at Dave Ramsey’s Ramsey Solutions company.

Everyday Millionaires is the culmination of comprehensive research on more than 10,000 American millionaires—and the results might shock you.

Here are some of the surprising revelations in Everyday Millionaires:

  • There is no secret sauce for becoming a millionaire.
  • Most millionaires in the U.S. were not born rich.
  • You don’t need to have a high-paying job to achieve millionaire status.

Hogan and the Ramsey Team show the world that building extraordinary wealth is not reserved for those hailing from a privileged background or holding down high-paying jobs. Instead, true wealth is a product of living with responsible principles, like spending within your means, avoiding the debt trap, investing wisely and exercising discipline with your money.

There is no carefully guarded secret behind the nation’s most successful people. It doesn’t take a fantastic stroke of luck, a sizeable inheritance or a 7-digit salary. Anyone and everyone can achieve financial independence—and even millionaire status—by following Hogan’s guidelines while living responsibly.

Learn how to think like the rich and you just might be the next everyday millionaire.

Your Turn:
Do your personal experiences reflect Hogan’s research? Were most of the rich people in your life born wealthy or did they build their own net worth through responsible living and hard work? Share your thoughts with us in the comments.

SOURCES:
https://www.amazon.com/Everyday-Millionaires-Ordinary-Extraordinary-Wealth_and/dp/0977489523/ref=mp_s_a_1_9?ie=UTF8&qid=1539743871&sr=1-9&refinements=p_n_publication_date%3A1250228011&pi=AC_SX236_SY340_QL65

https://www.goodreads.com/book/show/41074642-everyday-millionaires

https://www.daveramsey.com/store/product/everyday-millionaires-book-by-chris-hogan