Posted byon January 25, 2008
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Debt snowflaking is a successful technique to get out of debt. In addition to the fixed amount that you have planned each month, you apply all the extra money you find to paydown your debt faster. It’s an extension of the snowball method and snowball calculator.
I didn’t want the investing crowd to be left out in the cold, so I’ve turned the approach around to apply it to building investments, which is the cornerstone of our dollar plan. I’m going to try to add each extra dollar that comes into our house to our investments! These investment snowflakes will help build our investments quicker just as the debt snowflakes help paydown debts quicker.
Building Net Worth
It’s likely that many of the strategies used by people working on paying down debt and people building their investments would cross over in principle. After all, the goal in both scenarios is growing your net worth overall.
I enjoy saving and investing even more when I can apply a fun strategy to it. This seems like a great one because I’ll be able to invest even more than I planned for the year. It will also help since we finished 2007 just short of our planned goal. Now, off to start snowflaking!
Photography by: ViaMoi