Snowball vs Avalanche: Which Pays Debt Faster? — Mastery #2
Snowball vs Avalanche: Which Pays Debt Faster? — Mastery #2. Here’s the simple version that works without perfect discipline or fancy software.
Time in the market outperforms timing the market. Low-cost funds and patience do the heavy lifting.
Steps
- Weekly review — Spend ten minutes each week to recategorize, check upcoming bills, and adjust one thing.
- Automate transfers — Schedule savings and debt extra the day after payday so progress happens by default.
- Bucket spending — Group variable expenses into a few buckets (groceries, transport, fun) so tracking stays lightweight.
- Map cashflow — List income dates and fixed bills so you know exactly when money arrives and leaves.
- Quarterly tune‑up — Revisit insurance, phone plans, and subscriptions; big wins hide in boring places.
Why weekly review? Spend ten minutes each week to recategorize, check upcoming bills, and adjust one thing. This changes the game by making the decision once, then letting your system run even when life gets chaotic.
Why automate transfers? Schedule savings and debt extra the day after payday so progress happens by default. This changes the game by making the decision once, then letting your system run even when life gets chaotic.
Why bucket spending? Group variable expenses into a few buckets (groceries, transport, fun) so tracking stays lightweight. This changes the game by making the decision once, then letting your system run even when life gets chaotic.
Why map cashflow? List income dates and fixed bills so you know exactly when money arrives and leaves. This changes the game by making the decision once, then letting your system run even when life gets chaotic.
Why quarterly tune‑up? Revisit insurance, phone plans, and subscriptions; big wins hide in boring places. This changes the game by making the decision once, then letting your system run even when life gets chaotic.
Toolkit
- Note template — Keep a running doc for wins, misses, and next week’s one change.
- Spending alerts — Set thresholds so you get a nudge before you overshoot, not after.
- Calendar — Mark paydays and due dates; set a 10‑minute weekly recurring event.
How to use note template: Keep a running doc for wins, misses, and next week’s one change. Start simple; upgrade only if it saves time every single week.
How to use spending alerts: Set thresholds so you get a nudge before you overshoot, not after. Start simple; upgrade only if it saves time every single week.
How to use calendar: Mark paydays and due dates; set a 10‑minute weekly recurring event. Start simple; upgrade only if it saves time every single week.
Example
A family shifted carriers and meal‑planned weekends; fixed costs fell by $180/month without feeling deprived.
Common Pitfalls & Fixes
- Skipping reviews — Put a ten‑minute block on the calendar. Done beats perfect.
- Over-detailing — Stop tracking every coffee; protect buckets and the big goals instead.
- Chasing rewards — Pay in full first. Rewards don’t beat interest.
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