Ep. 381 - Debt Snowball

The debt snowball works because it’s all about changing your behavior. You don’t have to hold a math degree or have gone to business school to beat debt. Hope has more to do with this equation than math ever will.

Winning with money is 80% behavior and only 20% head knowledge. If you can get that person in the mirror to change their habits, there’s no stopping you!

Tune in today as Rob discusses the debt snowball and other methodologies to paying off debt!  

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Discussion Links:

Dave Ramsey | RamseySolutions.com

Dave Ramsey is an eight-time national bestselling author, personal finance expert and host of The Ramsey Show, heard by 23 million listeners every week. He has appeared on Good Morning America, CBS This Morning, Today, Fox News, CNN, Fox Business and many more. Since 1992, Dave has helped people take control of their money, build wealth and ...

How the Debt Snowball Method Works | RamseySolutions.com

5 days ago — The debt snowball method is a debt-reduction strategy where you pay off debt in order of smallest to largest, gaining momentum as you knock out ...

Financial Peace University | RamseySolutions.com

Financial Peace University is a nine-lesson course that teaches you how to save for emergencies, pay off debt fast, spend wisely, and invest for your future. And no complicated financial blah blah blah over here. For over 25 years, Dave Ramsey’s been teaching commonsense, biblical money principles that work. Every time.

Habits
The Greatest Salesman In The World Scrolls - The Scroll Marked 1 - 1/10

Transcript

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SPEAKER_01 0:02

If we stand together, we'll never fall. We can make a difference and answer the call.

SPEAKER_00 0:15

Well, hi there and welcome back to another episode of the All Around Growth Podcast. My name is Rob Kaiser and I am your host. The topic of today's show is the death snowball. But before we get into the topic and dive into that, I'd like to welcome you back to the show. This is episode number 381 of a show that provides insight and tools to help you build the life and homestead of your dreams. And like I said, it's today's uh today's Tuesday, July 19th, 2022. And yeah, like I said, the topic of today's show is the debt snowball. Now, if you've listened to Dave Ramsey talk for more than 60 seconds, you'll know how he feels about debt. And if you've listened or are familiar with Dave Ramsey, you may even be familiar with a debt snowball yourself. Now, if you're not familiar with who he is, Dave Ramsey is an eight-time national best-selling author, personal finance expert, and host of The Ramsey Show, heard by 23 million listeners every week. He has appeared on Good Morning America, CBS This Morning, Today, Fox News, CNN, Fox Business, and many more. Since 1993, Dave has helped people take control of their money, build wealth, and enhance their lives. He also serves as CEO for the company Ramsey Solutions. There'll be a link to this in the show notes. And I first began listening to Dave Ramsey on AM Talk Radio. You know, one of those 20-some million listeners, most likely at that time, way back in 2009-2010 when I was traveling and when I was on the road a lot. And it was at that time where I first heard about, you know, his one of the products, I guess, that he offers as part of his umbrella company, Ramsey Solutions. Now he's an he's an author, he's written a lot of books, he's got a lot of content out there, and one of his his his uh content, one of his courses, if you will, is Financial Peace University, again linked to in the show notes. Now I first took a Financial Peace University course in 2017, and I first coordinated the Financial Peace University course in January of 2020, and I continue to coordinate classes to this day. Now, we're not gonna really do a deep dive into financial peace today, but we will talk about the debt snowball. Now, baby step one is considered to be the easiest and the hardest baby step by saving a thousand dollars in a baby emergency fund, and baby step two is where we pay off all our debt except the house using the debt snowball. So, all right, what you know what is the debt snowball, right? In a nutshell, here it is. The debt snowball method is a debt reduction strategy where you pay off debt in order of smallest to largest, gaining momentum as you knock out each remaining balance. When the smallest debt is paid in full, you roll the minimum payment you were making on that debt into the next smallest debt payment. Alright. It's like this is one of these things that is simple but not easy. It's simple because it's a four-step process, right? Step one, list your debts from smallest to largest regardless of interest rate. Okay. Step two, make minimum payments on all your debts except the smallest. Step three, pay as much as possible on your smallest debt. And finally, step four, repeat until each debt is paid in full. That's it. Alright, now you can read more about how the debt snowball method works. I'll link to that in the show notes as well. But in a nutshell, the debt snowball works because it's all about changing your behavior. Alright, like you don't it a lot of people want to bicker on this and and and argue with it and say that there's a a better way, a different way, you know, mathematically speaking, we're gonna do this with the interest rates, and you know, even maybe go so far as to transfer balances in order to save on interest rates, you know and so on and so forth. Look. Dave writes that winning with money is 80% behavior and 20% head knowledge. And if you can get that person in the mirror to change their habits, there's no stopping us. And speaking of habits, alright, real quick side note, something that I've been making part of my routine, my morning routine lately, has been listening to the greatest salesman in the world. The scrolls marked one. And I'll link to that in the show notes, but there's some talk about habits, and that habits are just a part of our life, and we are a slave to our habits. And if we are to be a slave to our habits, let us be a slave to good habits. Okay, so if we're gonna if we want to win with money and we understand that this is 80% behavior and 20% head knowledge, let's forget about the math. Okay, because if we were so smart about math in the first place, we wouldn't gotten ourselves in this predicament with debt, would we? Alright. So, 80% behavior, 20% head knowledge, habits, habits, habits. Alright. Easier said than done, right? How so how do we stay motivated? Well, it takes work. And sometimes all this shit is not easy. And I believe that's where Financial Peace University comes in. Alright? We we better understand the debt snowball. We actually implement it through this nine-week program of Financial Peace University. You have some sort of accountability with the coordinator, with the people in the class, with you, and it's important to do that, to engage with people. You know, think about it like a 12-step program, right? You're around everyone in the rooms, learning more, immersing yourself in the program, absorbing as much as possible, and that's important because the statistics show that the average household household going through Financial Peace University pays off $5,300 in the first 90 days. That's $5,300 in debt in approximately three months. That's a big deal. All right, so this practice of the debt snowball works, and if you're in debt, you can do it. You know, just like the snowball gains speed on its way down the hill, you can also power through your debt utilizing the debt snowball method, and by doing so, you can watch your momentum and your success grow as you go one debt at a time. FPU is a big part of accountability. Accountability is a big part of success, and I would simply encourage you to check it out and you know if you're really serious about changing your financial life, changing your family tree. If you're really serious about making a change in your life, then I would really encourage you to check out Financial Peace University to get a better you know, easy for me to say, I would really encourage you to check out Financial Peace University in order to get a better handle on the debt snowball and make the progress you've always dreamed about. So check it out, change your life. This is Rob Kaiser, and thank you, I'm gonna go.