The Debt Snowball is where you take all your debts and order them from smallest to largest. The idea is to pay off the smallest debts first and keep paying off debts until you get to your mortgage. Focus on paying off all the debts that do not appreciate. Even if you have to sell assets to get you to a debt free situation, it can definitely pay off in the long run. After completing your snowball, we will focus on creating a safety net of 6 months worth of expenses. Since we have "snowballed" a majority of our debts at this point, we won't require as much to pay our bills per month.
So, let's get started and complete the exercise below to get our snowball rolling.
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