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The Extras


Okay! You’ve got money in all your “accounts.” You are ready for the monthly ritual of the "paying-of-the-bills" for next month instead of playing catch up for the month behind. You might even have a little extra. Maybe you have a little left over from your tax return after padding all those accounts. And remember when we mentioned those one or two extra paychecks a year? Here is what you do with that surplus: put it in the account of the smallest debt.

“But, I have enough money to make that payment already,” you say.

Yes, but we are not JUST making the payment, we are GETTING OUT OF DEBT which means we’ve got to pay EXTRA when we can. So do it. Put that extra money into that account with the smallest balance.

“Ok, so I put in enough to match the balance of what I owe, and I STILL have money left.”

That is FABULOUS! Take the excess amount and put it on your NEXT smallest debt. Keep doing this until all the extra money is accounted for. Pretty soon your money will spread over fewer debts, allowing you to repeat this process with the regular money as well as the extra money.

Google says the definition of snowballing is: increase rapidly in size, intensity, or importance.

You might call this financial snowballing.

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