Multiple Benefits of Working Hard on this project

When we started this project, our main goal was to communicate more about our money and how it is being used.  Through this though we are starting to see other benefits too.

Since we started this project, we have been very committed to eating at home and really limit our eating out.  Because of that we have gone out a maximum of once a week.  We still aren’t the healthiest of eaters but eating at home more often than not is healthier than eating out.  Because of that, in the last 4 weeks alone, I have lost 10 pounds.  As a basketball coach, teacher, husband, and father of 3 young kids, I don’t have time to work out right now as most of my time is devoted to one of those.  So the only change that has been made is eating at home.

Another great thing that is going to happen in the next couple of weeks is we will have one of our four credit cards completely paid off and will not be used again.  That in itself is a great accomplishment and will feel really good to get rid of.  But then what we will take advantage of is the power of snowballing your payments.  That payment that we put towards that credit card will go directly towards paying off the next one, so that we can pay that next one off even quicker.

Most money experts will tell you that if you are going to put extra money towards debt put it towards the debt with the highest interest rate.  And they are right, you will save the most money doing it that way.  We actually didn’t do that though.  Instead we decided to pay off the debt that had the lowest amount so we could get rid of that completely.  (Our highest interest rate is on the card that has the most debt.)  Who’s right??  The experts probably still are, but I’m going to be down to 3 credit cards very quickly, instead of still having four.

I tell my students all the time in class that there are many ways to solve a problem and I don’t care which way you choose as long as you do it right.  There are ways to make the problem easier or quicker to solve, or there is a very long roundabout way to get to the answer.  In the end does it matter which way you did it as long as you do it??  No matter what problem you are facing, commit to something that makes sense to you and then go after it.  Because of that, like I said we’ll be down to 3 soon.  Then it’s time to get it down to 2 and so on:)

One thought on “Multiple Benefits of Working Hard on this project

  1. You’re exactly right by paying off the debt with the lowest balance first. The reason? It’s a victory. You’ve made progress and you can see it. Seeing progress is what keeps you motivated. If you had done what the “experts” say by paying off the debt with the highest interest rate first, which in your case also had the highest balance, it would have taken you much longer to see that first victory. And your motivation would have suffered because of that. Paying off debt is about behavior modification, not necessarily what makes the most sense mathematically. So congrats to you guys for seeing that first victory!

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