I read about the debt avalanche sorry it called debt snowball for long time, now it’s time to read his best selling book “the total money make over”.
this will be not long if you want to read the conclusion from the author here;
ok then this is my view;
A: stop buying you have no intense feeling enough to buy,
B: if A then do you want to impress someone by that buying, or it’s already thing 4 times before?
that’s the best parts. many times we buy something that only for others’ impression. sleep many night on thinking about why you need to buy things. even smallest one. that may be the best thing you can ever appreciated this book.
for more conclusion read on the link i give you. but in case you want a little preview.
1. save emergency money 1000 usd. (in many countries, 1000 usd or 40k thb are too large sum. try thinking about what can make you get through 1 month; this one should be more precisely in my opinion.)
2. clear all debt except house debt. and never added more debt. quite direct, straight for more strategy you need to figure out small to biggest debt. list all smallest number you can pay for each debt each month and pay the minimum, then the rest of money attack at the smallest debt first till it gone. do this step till all debt gone. this call debt snowball.
3. this extended from 1. extended emergency money to 3-6 months.
4. invest 15% of all your income (after step 3 finished) to retirement investment.
5 and 6. the rest of money build up (deduct 15% off and deduct all expense) go to pay on house and your children education funding.
7. enjoy your wealth.
PS. one more recommendation;
if your friends/ love ones/ or relatives want to borrow you the money. in case you want to help, try to think about that amount that you can giveaway; in any manner that will not make you suffering.
if you borrow any ones money you will sell the trust of that ones, with the price you will never get back.
trust me; i already prove that many times in my life.