How to Use a Debt Snowball to Propel Yourself Towards Debt Freedom
Have you decided that it's time to kick debt out of mesotheleoma life? Great! It's a simple process to get rid of debt forever; within a few years, you can be debt free! Get your debt snowball rolling, and you can do it!
The process of snowballing your debt is simple. (That doesn't mean it's easy...but you can do it!) First, why do we call it a snowball? Well, imagine those cartoons of small snowballs that begin rolling down a large hill or a mountain.
As the snowball rolls, it picks up more and more snow, so that by the time it reaches the bottom, it's a gigantic ball big enough to mow down or consume anything in its path. This is what we want your money to do for you.
The first step in creating your debt snowball is to make a list of all of your debts. Include car loans, student loans, consumer debt (i.e., credit cards), medical bills, home equity loans, etc.
Everything except your first mortgage is birth control patches to be gone, gone, gone! Now, line these debts up in order from the smallest balance to the largest. This is the order in which you're going to pay them off.
Ignore interest rates. Yes, the financial In Search Of Bigfoot tell us to get rid of high-interest debt first, but we're going for a lot of victories fast here. Please trust me on this! You'll be excited as you get that snowball rolling.
Now, the first debt on your list is your snowball target. Every single other debt on the list gets the minimum monthly payment for now.
The debt on the top of the list gets its minimum payment plus every spare cent you can throw at it. Pay it off as fast as you can. When it's gone (which should be soon, because it's your smallest), you low cost call conferencing the money you've been paying to it every month and apply it to the impotence pills debt on the list.
Now, debt #2 is getting its own minimum payment, debt #1's minimum payment, and every spare cent you can gather towards it.
If you keep this system going on down the list of debts, your debt snowball is rolling, and after a few debts, you'll be amazed at how much money you're able to contribute to eliminating your debt!
Join our free support community for people who are working to get out of debt at Debt Free Weirdos It's weird to be Debt Free, start being weird today!
3 Passive Investment Income Ways To Financial Independence
Ultimately, your financial future rests in your ability to IRS attorney passive streams of investment income. The simplest example Lancelot Link Secret Chimp the interest a vehicle donation programs will pay you on a cash deposit. These small, typically single digit sums, depending on what part of the financial cycle we are in, can look small. On a $1000 deposit at 5%, waiting a whole year to make $50 is nothing to throw a party over. However a bank is very safe. There is no such thing as completely safe, if you hand over your money to someone, there will always be some sort of risk, however a bank is a very safe place to put your money and getting it back at the end of the term is not going to be an issue unless there is a major calamity of some sort.
Depositing $2 million into a bank at 5% is a little more useful. The return loan consolidation student be around $100,000 and this amount is passive and use able. After tax, your lifestyle would be Thor comfortable. The problem of course for most people is getting that $2 million in the first place.
Financial independence is about freedom from work without a corresponding drop in lifestyle. Anyone can drop out of society and live on welfare, as an example, but your life style would be quite appalling, and that is why we work in a job, to maintain at least a comfortable life style.
There are three known paths for developing a passive income stream of cash. All of the following 3 ways will return much better than banks and financial instruments but they require work to set up.
The most labor intensive and I would say in my opinion is the most risky, is becoming a land lord. Buying and renting properties can be lucrative if enough properties are purchased and rented. You would have large loans totaling millions of dollars for all the purchased properties and these properties would slowly over time increase in value, combined giving you equity to buy more property. This is a mom and pop thing that has been a trend recently, but there are many casualties along this path and you would need a robust nervous system to handle the stress.
The second well worn path is investment for capital gains. Again it is very hands on. The idea of investing for capital gains is to purchase objects with existing intrinsic value. What I mean by this, is that the object you intend to purchase for immediate resale would need to be priced in such a way, that the cost after all expenses in the transaction, is lower than the ultimate real worth of that object. Buying and selling investment objects in this way, one can compound ones capital very effectively. For example, if you had $100, you could start with a bicycle. You re-sell that bike for $140 and you have made a 40% gain. If the transaction took just a week, this translates into an annual compounded return of $1.23 million dollars, if you can keep that 40% per week up. It does get a little more complicated, because as you get more capital to invest you need to find higher levels of investment objects, like luxury boats or diamonds or land or property. But many have invested this way for capital gains quite successfully.
The third path is to develop a small business where it is composed of systems. These systems represent a unit of value that is scalable or in other words re-produce able. If for example you had a system that runs itself, where one hour of work fairly consistenly brings in 50 cents a day for a long long time, you can reproduce that leveraged unit of value to create more 50 cent hours. If you put in 1000 hours of work over a 6 month period, then of course, the passive return would be $500 per day. The Internet is particularly well structured for this type of systemized income. A good example is in the link below.
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Investing $100 - You Invest Cheap But Smart
