This series is coming to a close and today we get to talk about how to work our Total Money Makeover!
You've got money enough for the basics and all the money coming in is budgeted. The next step is to save a starter emergency fund of $1000. This is so important, especially since you've made the commitment to no longer borrow money. Since debt is not an option you must have money for when emergencies happen and they will. There needs to be a cushion between you and life so you won't be tempted to run back to your credit cards. Get this $1000 as fast as you possibly can by working extra or selling stuff on a garage sale or putting items on Craigslist or Ebay.
Make a list of all your debts, smallest to largest regardless of the interest rate. Why are we not worried about the interest rate? As Dave Ramsey says, "Great focused intensity supersedes math any day." By working the debts smallest to largest the progress you make will help you feel great and then you'll become more focused and intense on the task at hand.
Take that debt list and pay minimum payments on all of them except the little one and throw every single penny you can at the little one and get rid of it! You need to become focused on that one debt, when that one's gone, attack the next smallest debt. You'll continue this process until you've paid everything off! The amount of the payment you're sending to your creditors grows each time you pay off a debt because that minimum payment is gone. That's why it's called a snowball because it grows larger as it continues rolling down the hill and gains more and more momentum as you go along.
You can do this and I'll be here to cheer you along all they way! If you have any questions feel free to shoot me an e-mail, I love to help others! I won't bite, I promise!
Becoming Debt-Free definitely Works For Me! And being Debt-Free is a Finer Thing!
At Tuesday's Tip Jar you'll find other bits of useful info.
Are you debt-free or working on the journey? Where are you in the process? Almost done or just starting? Leave me a comment.
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