When looking at your finances it can get very overwhelming if you do not know what you are doing or have a plan. If you are not careful your debt can build up and before you know it you are drowning in it and you are now living pay check to pay check with a mountain of debt and lost on how you are possibly going to pay everything off. It is good to have a plan and implement Warren Buffets snowball effect strategy in order to help pay down debt and take control of your finances along with your life. There are simple steps you can take and anyone can do them if they put forth the effort.
Warren Buffett started investing at a very young age. At 9 he started his journey to financial freedom and what to do with his money. This was due to him being born into a family who’s grandfather was a business owner and father was a stock broker who turned politician. This helped set a base for him early on for the success that we see today.
One of Buffett’s main ideas which was the basis for the title of his book is the snowball effect. Using this method anyone can get out of debt and start building wealth. The idea is to start small, the earlier the better although some of us may be late to the game its never to late to start. You start with your initial investment no matter the amount and the idea is over time with compounded interest your investment will grow over the years. In the beginning the interest will be small but as your investment grows and you add more money to it, the more interest you will gain.
Using the same snowball effect that is mentioned above it is important to keep in mind the same concept can be applied to debt that you might be in. Paying off the smallest or most interest amounts first and worrying about one debt at a time.
Anyone can take these concepts and run with them and take control of their financial life. Stop living pay check to paycheck and get your retirement investments under control. Start now, do not wait a month or a week, start today and begin acquiring interest and you will be happy you started when you did.