Cashflow, Abundance Mindset, & being a good STEWARD of your money (balance between spending, saving, & serving) are THE most important elements of financial preparedness. I HIGHLY recommend Adhis Boucha at New Money Mama & Chris Miles at Money Ripples for help on creating more financial abundance in your life & learning the PRINCIPLES (followed by strategies) of financial peace & success based on spiritual & natural laws. I also very highly recommend Leslie Householder's books, "Jackrabbit Factor - Why You Can", "Portal To Genius", & "Hidden Treasures - Heaven's Astonishing Help With Your Money Matters"... which can all be found on Amazon or HERE.
Now for debt...
If you aren't in debt - GOOD FOR YOU! And KEEP IT UP!
If you are... then click HERE or on the piggy bank photo above for a simple and effective calculator that implements the "debt snowball" approach to getting out of debt quickly. (Again, make sure to learn about the importance of cashflow, as mentioned above, so that you can balance that with reducing your debt. It's SO important!)
If you're working on paying down your debt, this is the best way to do it:
The DEBT SNOWBALL approach:
Pay off your lowest balance first.
Once that smallest bill is paid off, then you apply that payment to the next payment until it's paid off.
Once that 2nd debt is paid off, then you apply the 1st AND 2nd payment to the 3rd debt... and so on.
You're snowballing your payments into the next payment, which compounds & helps you pay off your debts MUCH faster.
Credit card #1: Balance $500 - Minimum Monthly Payment = $50
Credit card #2: Balance $2,000 - Minimum Monthly Payment = $150
Car Loan: Balance $8,500 - Minimum Monthly Payment = $350
Mortgage: Balance $215,000 - Minimum Monthly Payment = $1,350
***Pay off CC#1
***Apply that $50 payment to CC #2, so that payment now becomes $200 instead of $150.
***As soon as CC #1 & 2 are paid off, take BOTH of those payments & apply them to the car loan, so that the car payment is now $550 instead of $350.
***As soon as the car is paid off, take all 3 of those payments & apply them to the mortgage. Now that payment is $1,900 instead of $1350, but you have not increased the amount of money going out each month at all!
Voila! You're out of debt in a fraction of the time!