Persist and persevere, and you will find most things that are attainable, possible.Philip Stanhope
Baby Step 2
Pay off all debt using the Debt Snowball
List your debts, excluding the house, in order. The smallest balance should be your number one priority. Don’t worry about interest rates unless two debts have similar payoffs. If that’s the case, then list the higher interest rate debt first.
Why do we want to list our debts from the smallest balance to the largest? That seems counter-intuitive as you might think we want to get rid of the largest debts first, right? Dave has learned a powerful lesson while coaching people for over twenty years on their finances. We need to feel that sense of achievement to fulfill our goals. If our goals are not attainable we will lose hope and abandon them at the first sign of adversity.
Unattainable goals de-motivate people
I personally have put down goals that were unrealistic and on unattainable and it really got me discouraged. When I was in sales I remember going to a training class we were all asked to put down goals for our first year in sales. I put down a big number that was more than most great sales representatives made in their 3rd or 4th year. That was a good lesson in how quickly we can become disappointed if we don’t make our goals attainable. Ask around if you are doing something new to understand what is realistic and attainable. Slowly build up to bigger and better things like Dave Ramsey’s “Debt Snowball.”
When we put our goals together for 2015 we need to use the S.M.A.R.T. guidelines to make sure we can accomplish them.
For instance, if I say I want to run a half marathon and I haven’t run in ten years that might not be attainable. And if we don’t put a time on that it isn’t time-bound either. When I was beginning the process of writing a book I had to put a goal of completing my first draft by October 27, 2014. This was definitely specific and measurable, but I wasn’t sure if it was attainable. I wrote a smaller eBook in a shorter time frame so I had a idea of how much time it might take.
Who do you know that has done something similar. As I have started my own side business I have asked many other entrepreneurs questions how they got started and what pitfalls they encountered. There are many people out there that are willing to help. I have known Diane (Schultz) Stachewicz since elementary school. She has been helping others get in shape with her programs at Back on Track with Diane. When she started out she had to enlist the help of another classmate of ours, Mic Siefert, to help her get started in her fitness business. He had established a similar business a few years before.
I have put together a worksheet to help you with making your 2015 goals attainable.