Dave Ramsey’s debt-snowball

I want to show you how to actually implement Dave Ramsey’s debt-snowball into practice. I use Microsoft Excel to do it. Once you open a spreadsheet, follow along:

Paying down debt is interconnected with the ability to pay down your current expenses per month, because you need to have enough money left over from current obligations to allocate towards debt in order to get yourself on the road to debt-freedom, so you will need to first line up all your expenses in rows, like I show you in both of my E-Books you can find here:

On nook:


On Kindle:


You can also get a quick idea free from this youtube site:

The key is to line up all of your debts from smallest amount to largest amount, pay the minimum amount on all of them, except the lowest amount – you should muster all your remaining money you can gather, even if you have to sell some things to do it, and throw every remaining amount of money at the lowest debt until it is gone.

Once you are able to eliminate the lowest debt, then you can practice this same method again on the next lowest remaining debt amount. Do this over and over again until you are completely debt-free. You will notice that every time you eliminate a debt, it frees you up from that amount which you would normally pay each month on it, which then rolls into the overall amount you can afford towards the next lowest debt amount. This process of being able to afford more and more each month on your lowest debts is called the “debt-snowball.” I owe all of my financial knowledge to Dave Ramsey for opening my eyes to this key insight. Now I know why many rich people are rich, because they did this temporary practice once in their lives, and continue managing their money responsibly by saving it from month to month, which I also show you how to do in my E-Books.

Once you can save, then you can invest and allocate money (i.e. risk it) and begin to make money from your own money. This is the key to success.

Good luck!


1 thought on “Dave Ramsey’s debt-snowball”

  1. This is some great advice. I have a similar method on my site. I’ve created a spreadsheet to optimize debt payments. It uses the same snowball method of using recently debt-freed money on the next debt. Once you’ve input your information, along with any additional amount you have to put toward debt, the spreadsheet with automatically tell you which debt to pay off first and how much time and money you could save. Here’s the link if you’d like to take a look http://lessonsinpersonalfinance.com/spreadsheets/. It’s the Debt Optimizer spreadsheet.

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