Finance Tip of The Bi-Week – January 18, 2017

Have you ever heard of the debt snowball?

If you have multiple debts or credit cards, it’s a great method to get out of debt.

Here’s how it works.

1 – Start budgeting, and spend less than you make.

2 – Make the minimum payment amounts on your cards except for the debt with the lowest balance. That one, you pay off as fast as you can.

3 – Once you pay off the smallest debt, start using the amount you were paying on the smallest debt to the next smallest debt.

4 – Once you pay off the first two, use both monthly payment amounts to tackle the next. (Snowball)

5 – Keep doing this until all your debts are paid off.

By paying off the smaller debts first you get a boost of motivation that will wear off if you tackle the largest debt first.

Paying off debt is more about behaviour than math. Change your behaviour, change your results!

Finance Tip of The Bi-Week

January 4, 2017

This time of year is often known for New Year’s Resolutions.  I love New Years Resolutions.  I often try a couple each year.   I don’t always meet my goals, but I do move ahead in certain areas of my life.  I take the “Shoot for the Stars and you just might land on the Moon” approach.  (which may be quoted backwards, but it works for me)

Try to set a big goal and if you move in the right direction at least you’re bettering yourself. 

Here’s a suggestion of a strategy to accomplish a financial goal.

Get a 2017 calendar and give yourself an X on the calendar every time you go a whole day without spending money.  Then challenge yourself to get a certain amount of X’s per month.  After a couple months, provided you don’t binge shop, you’ll probably find that you are in a much better financial situation.