The Debt Snowball

The Debt Snowball


Think of your financial situation as a snowball: When in debt you are pushing this huge snowball up hill. As you pay your debt off, and the interest element decreases, your snowball gets smaller, lighter, and less of a burden. You reach the top, and can enjoy the view without the burden. Many people would now borrow more money, and so the snowball rolls back down the hill. Remember: debt is borrowing money from your future self.

But you’re smart, and you are now in the habit of putting money aside, so you keep going. Now it starts rolling down the hill, getting bigger without the need for your input. You keep adding to it, and the power of compounding grows it for you. The bigger it gets, the faster it grows. When it reaches the bottom you are financially independent, and work becomes optional. Now how much pressure and anxiety melts away at that point?!

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