obviously paying with cash or debt makes you think about the cost more... however, if you can train yourself. using a CC is much better vs a debt card because of fraud. I pay for everything i can in cash or CC. every CC is paid off monthly, the debt card is in some drawer and never used.
Definitely agree but a lot of people aren’t responsible with their money. We truly have a lot in the US we just need our wants to match our needs instead of living in extreme access!
I did the snowball method to get out of debt. Financial advisors recommend your avalanche method, but that wasn’t for me. I enjoyed the motivation of seeing my bills be eliminated one by one. What was understood but not articulated in your video is that when you pay off bill #1 you add all the money you were paying to #1 to the payment you were making to #2, and so on. By the time you’re working on your last bill you’re making huge payments which is very satisfying.
The other advantage of the snowball method is that from a risk point of view, it is more robust than the avalanche method. With the snowball method, you get rid of individual debts faster, which means that the gross monthly required amount (total of the minima) goes down quickly as well. The avalanche method may save you on interest, but the gross monthly required amount will remain higher for longer.
(All the "benefits" I've ever seen laid out for the snowball method limit themselves to the mental and emotional effect; i'm surprised that no one has noticed how it''s better from a viewpoint of financial protection as well.)
Some bills are embedded in life and cannot be eliminated or even reduced. You must be talking about some loans or subscriptions types of bills perhaps.
I knew a man who was $250,000 in credit card debt. This was 17 years ago. He was a butcher and his wife worked. He seemed cool about his debt. He was traveling on a cruise and spending money on his card . I was more concerned than anything. He didn’t care. I wonder where he is today? Broke? Dead? Divorced?
I paid off my debt and house in 2021. I still budget and pay for any shopping I do with cash. I purposely don’t have my credit card numbers saved in any websites including Amazon so there’s friction in buying something. I am now saving and investing 50% of my income easily without living like a miser. Being intentional allows you to have fun in life AND invest for your future! Great video!
This is what I am working on right now. Getting rid of this credit card debt. Paying off my car early. I will keep this video in mind moving forward through my financial journey.
I have enough to pay off my credit card debt, but im putting it into my high interest saving account as the CC is 0% for another 4 months, and my other is 0% for another 14 months. Snowball would be costing me interest on that savings account, and increasing tbe risk of having debt when the 4% period is up. Its all about the %.
Firstly, staying completely debt-free IS realistic whether you plan to buy a house or start a business. Secondly, the avalanche method is not the opposite of the snowball method; instead, it is an ALTERNATIVE method. Regardless, thank you for sharing this and for the well-made video.
It’s hilarious , the avalanche method that people use paying off the highest interest first with the argument that they are now concerned about paying too much interest. If that was the case they would be in severe credit card debt in the first place. You get more victories sooner with the snowball method.
Hey, Nicholas, a fan here. I love your videos. You know, English it's not my first language, and there's always the word "fruagal" or "frugally" that you mention a lot, and 'tll this days I haven't comprehend what that is yet, because that word doesn't existe in my mother tongue, so I can't translate it. So, could please explain to me what it basically means, please? It would mean a lot so I can get the context whenever you say, haha.
"careful about spending money or using things when you do not need to : using money or supplies in a very careful way." This was a fairly accurate definition I found
Oke, maybe its a difderent xountry thing. I do not have credit cards never had. I also dont pay things on pay later. In our country you start on a payment plan and they need a pay slip to see you can afford to pay the thing in instalments. So it a huge no for me. I pay things outright or lool secondhand when I need it. Most of my money goes to food, classes/tuition and rent. I have a yearly budget for clothes. I do spend a bit on coffee, cuz thats my one fav thing, but its all in the grocery budget.
The only times I would ever go into debt is for a house or a vehicle, but I forbid on opening another credit card. I hate owning money. I would rather get a second job than a second card. One way I stay organized is tracking my expenses, one paycheck goes to checking and the other goes to savings. The ways I work on my debt is don’t carry my credit card. I get biweekly paychecks so 2 months out of the year, I get a third which goes to debt. Using cash is better than cards, for it keeps you limited. If I don’t have the money. I won’t buy it. If I can’t buy the same thing multiple times, I won’t get it.
Great video, my only comment would be about auto payments. I definitely recommend them, but make sure you still review them monthly. In my personal experience, telecommunication companies like AT&T, Comcast, etc. tend to make a lot of "mistakes" in their favor when billing, so always make sure you are not being overcharged.
Great video. I didn’t realize I had been doing the Snowball effect when I paid off my debt over 10 years ago. I even had my daughter doing it to pay off her student loans and credit card debt. She was shocked at how fast it disappeared.
Hopefully the only debt ill have the next vew years when im done school is student loan debt. I will get 35 years to pay it off. They also start after 2 years and look at your income. So I will make sure my income is pretty low so I dont have to pay too much on that a month. I might never own a house, so I dont really mind.
I agree with the snowball method. I’m about to start using it myself. My next question is what is it that can keep you motivated besides the obvious of getting out of debt? I mean how do you go from making a little more payments and keeping that progress instead of just falling back into paying only minimums? I’m also interested in what can I do while I’m pouring all the money to pay off debt without feeling like I’m living like a hermit until debt is gone? I agree, no more debt after this!
Don't leave yourself completely broke after making the payments! Also, discipline > motivation.. it's impossible to feel motivated 100% of the time but you can be disciplined 100% of the time
I did the snowball method. I went trough every item in our budget, negociated some for a better price and just quit other stuff. Just like you I sold items I no longer used or needed. Paying of debt was actually a gateway to a more minimalish life for us where we prioritize experiences over stuff. I never leave the house without a water bottle and a fruit or vegetable as a snack, as moms everywhere say ”we have food at home” right? 😉
lol never pay the minimum amount for your credit card. By paying the minimum with interest you’re basically paying double or even triple amount. My credit card interest is 30% so yeah I’ll never pay minimum lol
I am enjoying your videos. I noticed in some videos that you have something that looks like an air purifier. If it is, is this a Levoit and which model is it? Do you find that it is cost effective and if you had to buy again would you choose this one? Enjoy your day. Thank you.
i have a car payment I ended up buyin 3 years ago for 480/ month. its a honda civic Si. I still owe $13k i really want to pay it off. then ill be debt free. should I borrow from my 401k plan or is that a bad idea? I dont plan on buying another new car again. because this is the car I always wanted and really enjoy it.
Not as obvious or easy but what helped me was moving to another country with a much lower cost of living and actually a much higher quality of life. Variations on this are moving to another city/suburbs, downsizing your living space, taking on a roommate or moving in with someone, or moving back in with your parents. This last one is going to be increasingly widespread as Boomers are starting to hit their late 70s. Many people cannot afford the astronomical assisted living facility costs (which are vastly inflated for the quality of care you are actually getting). Even if someone can afford it, its a bad way to spend family assets (ie. your inheritance) if you are able to help your parents out in this way.
![[กูเพิ่งซื้อมึงปิดหนี] 20 นาที ผมรีวิวเกมที่แย่ที่สุดในโลก CONCORD](http://i.ytimg.com/vi/XhC-3q3Ii7I/mqdefault.jpg)
obviously paying with cash or debt makes you think about the cost more... however, if you can train yourself. using a CC is much better vs a debt card because of fraud. I pay for everything i can in cash or CC. every CC is paid off monthly, the debt card is in some drawer and never used.
Definitely agree but a lot of people aren’t responsible with their money. We truly have a lot in the US we just need our wants to match our needs instead of living in extreme access!
I’ve had my debit card number stolen twice (once was physically stolen) and both times I got my money back just fine from the bank.
I did the snowball method to get out of debt. Financial advisors recommend your avalanche method, but that wasn’t for me. I enjoyed the motivation of seeing my bills be eliminated one by one. What was understood but not articulated in your video is that when you pay off bill #1 you add all the money you were paying to #1 to the payment you were making to #2, and so on. By the time you’re working on your last bill you’re making huge payments which is very satisfying.
The other advantage of the snowball method is that from a risk point of view, it is more robust than the avalanche method. With the snowball method, you get rid of individual debts faster, which means that the gross monthly required amount (total of the minima) goes down quickly as well. The avalanche method may save you on interest, but the gross monthly required amount will remain higher for longer.
(All the "benefits" I've ever seen laid out for the snowball method limit themselves to the mental and emotional effect; i'm surprised that no one has noticed how it''s better from a viewpoint of financial protection as well.)
Me too I took snowball method 😊
Some bills are embedded in life and cannot be eliminated or even reduced. You must be talking about some loans or subscriptions types of bills perhaps.
I knew a man who was $250,000 in credit card debt. This was 17 years ago. He was a butcher and his wife worked. He seemed cool about his debt. He was traveling on a cruise and spending money on his card . I was more concerned than anything. He didn’t care. I wonder where he is today? Broke? Dead? Divorced?
I paid off my debt and house in 2021. I still budget and pay for any shopping I do with cash. I purposely don’t have my credit card numbers saved in any websites including Amazon so there’s friction in buying something. I am now saving and investing 50% of my income easily without living like a miser. Being intentional allows you to have fun in life AND invest for your future! Great video!
Thanks!
I’m the contrary, I’d rather make money back by utilizing my credit card and amass rewards or cash back and not using my debit card.
Don't forget the tsunami method of attacking debt: paying off the one which pisses you off the most first!
Love your plants!
Thank you! 😊
I don’t have any debt but at the same time I suck at saving
This is what I am working on right now. Getting rid of this credit card debt. Paying off my car early. I will keep this video in mind moving forward through my financial journey.
I don’t have a car payment or credit cards but I do have a house mortgage and I’m renovating, I have just helped pay for my daughters wedding
I have enough to pay off my credit card debt, but im putting it into my high interest saving account as the CC is 0% for another 4 months, and my other is 0% for another 14 months. Snowball would be costing me interest on that savings account, and increasing tbe risk of having debt when the 4% period is up. Its all about the %.
Man i have to send this to every parent 😅
Firstly, staying completely debt-free IS realistic whether you plan to buy a house or start a business. Secondly, the avalanche method is not the opposite of the snowball method; instead, it is an ALTERNATIVE method.
Regardless, thank you for sharing this and for the well-made video.
Thank you so much for sharing this video
It’s hilarious , the avalanche method that people use paying off the highest interest first with the argument that they are now concerned about paying too much interest. If that was the case they would be in severe credit card debt in the first place. You get more victories sooner with the snowball method.
Hey, Nicholas, a fan here. I love your videos.
You know, English it's not my first language, and there's always the word "fruagal" or "frugally" that you mention a lot, and 'tll this days I haven't comprehend what that is yet, because that word doesn't existe in my mother tongue, so I can't translate it. So, could please explain to me what it basically means, please? It would mean a lot so I can get the context whenever you say, haha.
"careful about spending money or using things when you do not need to : using money or supplies in a very careful way." This was a fairly accurate definition I found
Moneytising hobbies and selling-off items-not-needed are pretty good ideas ! Waiting for the book video also :)
I love your plants, can you do a video about them. thank you
Oke, maybe its a difderent xountry thing. I do not have credit cards never had. I also dont pay things on pay later. In our country you start on a payment plan and they need a pay slip to see you can afford to pay the thing in instalments. So it a huge no for me. I pay things outright or lool secondhand when I need it. Most of my money goes to food, classes/tuition and rent. I have a yearly budget for clothes. I do spend a bit on coffee, cuz thats my one fav thing, but its all in the grocery budget.
I've never had debt.
Staying organized is vital to all areas of life especially with money.
Handsome and smart love been frugal
The only times I would ever go into debt is for a house or a vehicle, but I forbid on opening another credit card. I hate owning money. I would rather get a second job than a second card. One way I stay organized is tracking my expenses, one paycheck goes to checking and the other goes to savings. The ways I work on my debt is don’t carry my credit card. I get biweekly paychecks so 2 months out of the year, I get a third which goes to debt. Using cash is better than cards, for it keeps you limited. If I don’t have the money. I won’t buy it. If I can’t buy the same thing multiple times, I won’t get it.
Great video, my only comment would be about auto payments. I definitely recommend them, but make sure you still review them monthly. In my personal experience, telecommunication companies like AT&T, Comcast, etc. tend to make a lot of "mistakes" in their favor when billing, so always make sure you are not being overcharged.
Good call!
I just finished paying off my car. I would like to use that payment money and apply it to something else. Easier said than done.
Agreed!
Thank you ❤
Great video. I didn’t realize I had been doing the Snowball effect when I paid off my debt over 10 years ago. I even had my daughter doing it to pay off her student loans and credit card debt. She was shocked at how fast it disappeared.
That is awesome!
Great dude!
Awesome thanks
Hopefully the only debt ill have the next vew years when im done school is student loan debt. I will get 35 years to pay it off. They also start after 2 years and look at your income. So I will make sure my income is pretty low so I dont have to pay too much on that a month. I might never own a house, so I dont really mind.
Excellent content.
Much appreciated!
I agree with the snowball method. I’m about to start using it myself. My next question is what is it that can keep you motivated besides the obvious of getting out of debt? I mean how do you go from making a little more payments and keeping that progress instead of just falling back into paying only minimums?
I’m also interested in what can I do while I’m pouring all the money to pay off debt without feeling like I’m living like a hermit until debt is gone?
I agree, no more debt after this!
Don't leave yourself completely broke after making the payments! Also, discipline > motivation.. it's impossible to feel motivated 100% of the time but you can be disciplined 100% of the time
I did the snowball method. I went trough every item in our budget, negociated some for a better price and just quit other stuff. Just like you I sold items I no longer used or needed. Paying of debt was actually a gateway to a more minimalish life for us where we prioritize experiences over stuff. I never leave the house without a water bottle and a fruit or vegetable as a snack, as moms everywhere say ”we have food at home” right? 😉
Brilliant!
lol never pay the minimum amount for your credit card. By paying the minimum with interest you’re basically paying double or even triple amount. My credit card interest is 30% so yeah I’ll never pay minimum lol
I like using my credit cards like my debt card just for the points.
I lost my years earn money on business but Asian minimalism kept me happy…western maximalism culture caused destruction and pain to Greeks
Hey I'm struggling with what hobbies to choose or what to do on day off. Usually it's meal out, gym. But don't feel I'm really happy. Any ideas
Or maybe ill start a blog complaining about student loan debt and saving tips and use that to pay it 👌 who knows.
To avoid snowball. Don’t have credit card! Period
I am enjoying your videos. I noticed in some videos that you have something that looks like an air purifier. If it is, is this a Levoit and which model is it? Do you find that it is cost effective and if you had to buy again would you choose this one? Enjoy your day. Thank you.
I do really like it, I'd get it again!
amzn.to/446qdRV
@@NicholasGarofola Thank you.
Im still tackling 3 credit cards ..
Thanks for this video, Nicholas.
what's your wallpaper? thanks
Very sensible advice as usual, Nicholas!
I still have 9 months to be finally debt free☺️
new sub ✨
Thank you!!
Another interesting video 😊 Keep it up Nicholas!
Thanks! 😃
i have a car payment I ended up buyin 3 years ago for 480/ month. its a honda civic Si. I still owe $13k i really want to pay it off. then ill be debt free. should I borrow from my 401k plan or is that a bad idea? I dont plan on buying another new car again. because this is the car I always wanted and really enjoy it.
I don't think I'd ever recommend someone dips into their 401k for that
Nick(2043):
How I Became The Nemesis of Capitalism | Frugal Living
I'm good with debt. What I need help with is not letting people convince me to pay there debt.😢
Where you buy T shirt?
I have a link in the description box
how much did Reebok payed for that ad, damn boy! 🤣🤣🤣🤣
Not as obvious or easy but what helped me was moving to another country with a much lower cost of living and actually a much higher quality of life. Variations on this are moving to another city/suburbs, downsizing your living space, taking on a roommate or moving in with someone, or moving back in with your parents. This last one is going to be increasingly widespread as Boomers are starting to hit their late 70s. Many people cannot afford the astronomical assisted living facility costs (which are vastly inflated for the quality of care you are actually getting). Even if someone can afford it, its a bad way to spend family assets (ie. your inheritance) if you are able to help your parents out in this way.
He is wearing a Hamilton👀
My $40 Timex watch off Amazon?
@@NicholasGarofola But it still does look like one✨✨
Its nice
$561 over 70/mth???!! *laughs in Singaporean*
I think the US could learn a lot from Singapore's infrastructure 😅
"How I Became Debt Free", u just created a yt channel and go success from it xD
problem solved
I wish that were the case!