My First App

The Valuteachers Core conference for SC, NC, and VA reps was great. The Holiday Inn Express hotel in Lexington, NC overlooking the Childress Vineyards was a plus.

Majority of the reps were new like me and have yet to fill out their first app or application. Since that weekend, I almost had my first app done, but the young lady was busy at work and will complete it in the New Year. She is in her early to mid-20's, she has toddler son, and will be contributing to a ROTH IRA account.  She will begin with the minimum of $100 per month.

I'm excited for her because she is on her way to saving for her retirement. Starting at a young age will almost guarantee her 6 figures in retirement if she increase her monthly contribution $25 each additional years.

I know I have to continue to talk to young adults about saving for retirement. Believe me after a while you won't be missing it.

2013 is KNOCKING on the door, what are you waiting for?

Photo Credit:  http://theblakeproject.typepad.com

Comment below as to what are your fears of starting your first step towards saving for Retirement.

The Dave Ramsey's Debt "Snowball" Method

Christiandebtsolutions.org/debt-snowball

I attended the second series of financial workshops by the Richland County Public Library. "Budgeting and Saving" was presented last night by Newberry College Professor Paul Smith. After his seminar I decided to make one change.

I decided to go with the Dave Ramsey's Debt "Snowball" Method. I rearranged my payment plans so that I pay only the minimum on my two highest credit cards and all my extra money (part time jobs, unexpected money windfalls) are going to my largest credit balance. My highest should be paid off by December this year.

I've always heard about the "Snowball" method, but didn't like the fact I was only paying the minimum on my credit cards except the one with the highest balance. Psychology wise I could understand why the method works. It gives you the momentum to know you can do it, that you reached a goal, and can claim, "Yes I PAID off this card, now on to the NEXT".

Dave Ramsey's Debt Snowball Method: You start with your lowest balance and pay as much extra as you can over the minimum while on all your other balances you pay only the minimum. I made up the scenario below:

Credit Card                     Owe                      Min.                     Pay                Paid off after
Discover                            $340                     $20                        $40    8 1/2 months ($340/$40)
MasterCard                       $545                     $30                        $30
American Express             $620                     $35                        $35
Department Store              $980                     $50                        $50

After 8 1/2 Months
Credit Card                     Owe                      Min.                     Pay                Paid off after
Discover                           Paid                    
MasterCard                       $305                     $30                         $70    4 Months of paying $70
                                                                               $30 + $40(What you paid on Discover Card)

American Express             $340                     $35                        $35
Department Store              $580                     $50                        $50


After 12 1/2 Months
Credit Card                     Owe                      Min.                     Pay                Paid off after
Discover                           Paid                    
MasterCard                       Paid                    
American Express             $200                     $35                        $105   2 Months of paying $105
Department Store              $380                     $50                        $50

After a Year and 2 1/2 Months
Credit Card                     Owe                      Min.                     Pay                Paid off after
Discover                           Paid                    
MasterCard                       Paid                    
American Express             Paid                   
Department Store              $280                     $50                        $155            Almost 2 Months

Debt FREE after a Year and 4 Months!!!

You can then put that $155 you have been paying each month toward credit cards into your savings or Emergency fund so your credit cards won't be used as much or contribute more for Retirement. You can finally contribute to a 403b, Roth 403b, or Roth IRA with ValuTeachers if it is offered in your area. Go to ValuTeachers.com to learn more.

I would love to read your comments about the Dave Ramsey "Snowball" method.