Words To The Wise
I’m not a financial advisor everyone must do their own research. This is a very simple step-by-step guide on how to pay off debt. In this Blueprint, we will use the debt snowball method. If you are looking for investing advice check out my Investing 101 Blueprint. Did you know personal finance is 80% behavior and only 20% head knowledge? This is true and why this step-by-step Debt Blueprint is so important for your future. My number one free budget tool I use to track all my spending is Personal Capital.
Debts
Car, Credit Card, Student Loans and all Consumer Debt.
Step One
List your debts from smallest to largest regardless of interest rate.
Step Two
Make minimum payments on all your debts except the smallest.
Step Three
Pay as much as possible on your smallest debt.
Step Four
Repeat until each debt is paid in full.
Thoughts
This Debt 101 Blueprint will get you on the right wealth-building path to reach Financial Independence. I personally used these exact steps to pay down all my consumer debt and start my FIRE journey.
By paying down debt you will become more financially secure. This allows you to save and invest more money. This is how I am able to build over a quarter-million dollars in liquid assets. Just imagine where you could be in just a few short years once that debt is paid off. How good will you feel having all that stress off of your shoulders? I bet you will feel amazing.
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