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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