Ch.7 The Debt snowball: lose weight fast, really

Question 1

what’s the most powerful wealth building tool?

Answer 1

income

Question 2

is more or fewer payments better?

Answer 2

fewer

Question 3

how should you visualize where you want to be?

Answer 3

stop thinking of them as dreams think of them as goals and move accordingly

Question 4

how should you list your debts?

Answer 4

smallest- largest; pay the smallest rate on everything but put the most on the smallest debt until it’s cleared, then all that money goes to the second debt and so on

Question 5

what’s the one thing you shouldn’t put on your debt snowball?

Answer 5

your home payment

Question 6

what’s required when working your snowball?

Answer 6

total focused intensity

Question 7

If you can’t make payments on the smallest debt still what should you do?

Answer 7

work extra hours and or sell things you don’t need

Question 8

When should you sell your house?

Answer 8

sell your home only if it’s 45% or over your take home pay

Question 9

what’s the rule of thumb when considering what debts to “sell”

Answer 9

if you can’t pay it off in 18-20 months sell it

Question 10

what should you do if you have to use your emergency fund?

Answer 10

stop your debt snowball and go back to step one, re-amp your emergency fund

Question 11

when shouldn’t you put your second mortgage in the debt snowball?

Answer 11

if it’s over 50% of your gross income

Question 12

what is gross income?

Answer 12

the total pre-tax earnings from wages, tips, investments, interest, and other forms of income before money is taken out

Question 13

what is net income?

Answer 13

is a company’s total profit after all expenses, including taxes, interest, and other costs, have been deducted from its revenue

Question 14

what does God do when you’re going in the right direction?

Answer 14

God tends to put blessings on people when they’re going in the direction he wants them to