What does money have to do with a snowman? I currently live in Texas so I understand that some people have never built a snowman, but I grew up on the east coast and have many fond memories of snow ball fights, building igloos and of course building a snowman. Imagine starting the base for a snowman. You start with a something resembling a snow ball and start rolling it on the ground. As you go, the snow attaches itself to the ball and it grows and gets bigger, until you have a huge ball of snow that is your base for a snowman. What does this have to do with money?
Last week, I talked about the first step in your road to financial success – saving up some money for emergencies. This money is not because you forgot the pizza dude required money. It is not for a boat or new furniture or because you forgot Christmas was in December this year. It is for emergencies ONLY. Once you have that established, we go to step two: the debt snowball. If you are the average American, you are in debt (Because we have a negative 5% savings rate. We spend more than we make.). Take a look at all of your debt (do not include your mortgage at this stage). Continue making your minimum payments, but start to throw any free money you can at your smallest debt. Most advisors will tell you to pay off your debt that has the highest interest rate. I am not. Money is behavior and we want to make progress and pick up steam – much like making a snowball. So pay off the smallest dollar amount first. Once you have that debt completely paid off, hit the next smallest debt. Continue to pay your minimum payments, but hit that next smallest debt with every free dollar you can muster. As you pay off these debts, you will free up more money in your budget and before you know it, your debt snowball will turn into a freed up budget that resembles the base for your road to freedom from debt. Your biggest wealth building tool is your income. It is time to stop giving it away to your debtors and start putting it to work for you!
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My name is Tim Parady and I am 36 years old. I was born in Connecticut, raised in Virginia, had a brief layover in Kansas which led me to Texas where I met my wife and best friend. We just celebrated 145years of marriage.
I have the best job in the world, which is to improve peoples lives. I teach people how to win in all areas of there money, which affects all areas of their lives.
78% of Americans live paycheck to paycheck, with no money in the bank and little knowledge of how to invest for their retirement. You can have a different future. You can win with money and I can show you how.
I am an independent Dave Ramsey Financial Coach,and Insurance Agent at Alkali Insurance and I am here to serve you. My goal is to provide knowledge and tools to change your life. To schedule an appointment to address your financial needs and goals, email me at firstname.lastname@example.org