1 00:00:00,243 --> 00:00:01,473 Ralph: You've done the hard work. 2 00:00:02,313 --> 00:00:06,453 You faced your debt, you saw the truth, and you didn't run, but 3 00:00:06,453 --> 00:00:08,013 now comes the next challenge. 4 00:00:08,523 --> 00:00:11,463 How do you stay motivated to actually pay it off? 5 00:00:12,183 --> 00:00:13,743 Which method keeps you moving? 6 00:00:13,893 --> 00:00:17,073 When the process takes months or even years? 7 00:00:17,523 --> 00:00:18,333 Well, stick with me today. 8 00:00:18,363 --> 00:00:22,083 'cause today we're unpacking not just how to pay off debt, but how to 9 00:00:22,083 --> 00:00:23,883 choose a method that best fits you. 10 00:00:24,273 --> 00:00:27,423 Because the best plan isn't the smartest plan. 11 00:00:27,603 --> 00:00:28,983 It's the one that you'll stick with. 12 00:00:29,103 --> 00:00:30,183 So stick around today. 13 00:00:44,907 --> 00:00:45,387 Hey there. 14 00:00:45,387 --> 00:00:47,970 Welcome back to your Daily, financially Confident Christian. 15 00:00:48,285 --> 00:00:51,057 I'm Ralph, and I'm honored that you're walking this journey with me today. 16 00:00:51,507 --> 00:00:54,567 This is the show where we tackle faith, we tackle finances, 17 00:00:54,777 --> 00:00:55,947 and we talk about freedom. 18 00:00:56,457 --> 00:01:00,417 And today we're continuing our series dealing with the stress of money worries. 19 00:01:00,837 --> 00:01:04,107 Now, yesterday we talked about how debt can shape our identity 20 00:01:04,407 --> 00:01:06,267 and how to replace that shame. 21 00:01:06,562 --> 00:01:07,402 With truth. 22 00:01:07,732 --> 00:01:09,232 Well, today we're gonna shift gears. 23 00:01:09,322 --> 00:01:14,212 Now that the fog is lifted and the numbers are clear, how do you create a realistic 24 00:01:14,212 --> 00:01:17,332 plan that works for how you're wired? 25 00:01:18,262 --> 00:01:21,292 Now, maybe you're standing at the bottom of your debt mountain and you're, you're 26 00:01:21,292 --> 00:01:25,462 looking up at it and you're wondering which direction to start climbing. 27 00:01:26,632 --> 00:01:29,152 Do you attack that small one first for a quick win? 28 00:01:30,202 --> 00:01:33,472 Do you go after the big interest rates so you don't lose more money? 29 00:01:34,752 --> 00:01:35,592 Here's what I've seen. 30 00:01:35,682 --> 00:01:40,812 A lot of people pick a, a plan that that sounds smart, but it doesn't match how 31 00:01:40,812 --> 00:01:42,522 they're wired and they just give up. 32 00:01:43,452 --> 00:01:46,182 See, Debt payoff isn't always about math. 33 00:01:46,212 --> 00:01:50,172 It's a mindset, it's a discipline, and it's knowing your own 34 00:01:50,172 --> 00:01:51,762 psychology in a lot of ways. 35 00:01:52,212 --> 00:01:52,842 Here's the thing. 36 00:01:53,292 --> 00:01:55,092 God created each of us differently. 37 00:01:55,542 --> 00:02:00,222 Some of us are fueled by seeing fast results now, others of us are motivated 38 00:02:00,222 --> 00:02:02,562 by making the most efficient decisions. 39 00:02:03,117 --> 00:02:06,207 Let's look at the book of Proverbs, chapter 24, verse three. 40 00:02:06,207 --> 00:02:10,887 It says this, by wisdom, a house is built and through 41 00:02:10,887 --> 00:02:13,737 understanding it is established. 42 00:02:14,637 --> 00:02:15,867 What's that really telling us? 43 00:02:16,287 --> 00:02:21,332 See, understanding yourself how you think, how you stay motivated. 44 00:02:22,167 --> 00:02:25,647 That's part of walking in wisdom, and that's why we're not just 45 00:02:25,647 --> 00:02:27,417 comparing two strategies today. 46 00:02:27,447 --> 00:02:32,757 What we're talking about is which strategy actually works for you? 47 00:02:33,477 --> 00:02:34,557 Well, let me break it down for you. 48 00:02:34,557 --> 00:02:36,537 There's really two methods I wanna talk about today. 49 00:02:36,777 --> 00:02:39,327 The first one is what I call the debt snowball method. 50 00:02:39,327 --> 00:02:43,197 And that one, you list your debts from smallest to largest by balance. 51 00:02:43,317 --> 00:02:47,487 You pay the minimums on everything, but you throw extra money, extra 52 00:02:47,487 --> 00:02:50,817 every dollar at the smallest debt first, and when that's paid off, 53 00:02:51,017 --> 00:02:52,737 you move on to the next smallest. 54 00:02:53,097 --> 00:02:54,747 Now, you might be saying, Ralph, why does that work? 55 00:02:54,747 --> 00:02:57,207 Well, this method is psychological. 56 00:02:57,517 --> 00:03:02,137 It gives you those quick wins, it gives you momentum, and it gives you motivation. 57 00:03:02,527 --> 00:03:06,547 And if you're someone who needs to feel progress to stay engaged in something, 58 00:03:06,757 --> 00:03:10,267 this is the method for you because you'll stay encouraged because you 59 00:03:10,267 --> 00:03:12,727 see results and you see them fast. 60 00:03:13,117 --> 00:03:15,307 Now, the other method is what we call the debt. 61 00:03:15,477 --> 00:03:16,437 Avalanche method. 62 00:03:16,617 --> 00:03:20,757 Now, in this method, you list your debts from highest to lowest By interest 63 00:03:20,757 --> 00:03:25,137 rates, you pay your minimums on all of them, but you put all extra money 64 00:03:25,137 --> 00:03:27,177 towards the highest interest debt first. 65 00:03:27,177 --> 00:03:29,907 If you think about it, you're paying off the one that cost you the most first. 66 00:03:29,937 --> 00:03:30,477 Now, you might be saying. 67 00:03:30,742 --> 00:03:32,182 Well, why does this work, Ralph? 68 00:03:32,332 --> 00:03:34,882 Well, this method is very mathematical. 69 00:03:35,152 --> 00:03:37,312 It saves you the most money over time. 70 00:03:37,372 --> 00:03:40,882 And if you're someone who's a logic driven, if you're someone who's patient 71 00:03:40,912 --> 00:03:44,782 and loves efficiency, well, this is gonna be the method for you because why? 72 00:03:44,902 --> 00:03:47,542 You're gonna stay motivated, because you're squeezing the 73 00:03:47,542 --> 00:03:49,192 most value from your plan. 74 00:03:49,642 --> 00:03:53,692 So whether you're emotionally wired or you're logically wired, the 75 00:03:53,692 --> 00:03:58,162 important thing is what Proverbs, chapter 21 verse five, reminds us. 76 00:03:58,947 --> 00:04:02,367 The plans of the diligent lead surely to abundance. 77 00:04:02,697 --> 00:04:03,567 Now, what is it saying there? 78 00:04:03,687 --> 00:04:06,117 Diligence not perfection. 79 00:04:07,107 --> 00:04:09,327 And planning, not guessing. 80 00:04:09,837 --> 00:04:14,157 And see, when you choose a, a strategy that matches your mindset, you're far 81 00:04:14,157 --> 00:04:16,197 more likely to finish the journey. 82 00:04:16,647 --> 00:04:18,957 So here's your one action step for today. 83 00:04:19,137 --> 00:04:22,107 First thing I want you to do is pull out that list of debt you made. 84 00:04:22,167 --> 00:04:25,947 If you haven't made one, it's a great time to do it and review all your balances. 85 00:04:26,012 --> 00:04:27,272 And your interest rates. 86 00:04:27,422 --> 00:04:31,772 The second thing you need to do is you need to ask yourself this question, am 87 00:04:31,772 --> 00:04:36,782 I someone who needs fast wins, or do I care more about long-term savings? 88 00:04:36,932 --> 00:04:38,732 So you gotta come to your own decision. 89 00:04:39,032 --> 00:04:43,472 Then once you choose that strategy, if you need that momentum and that motivation. 90 00:04:43,797 --> 00:04:46,257 I'm gonna encourage you to choose that debt snowball method. 91 00:04:46,617 --> 00:04:49,797 If you want to save the most money long term, then you're gonna 92 00:04:49,797 --> 00:04:51,597 choose the debt avalanche method. 93 00:04:51,777 --> 00:04:54,627 So now you just wanna order your debts accordingly and highlight 94 00:04:54,627 --> 00:04:56,067 the first one you'll tackle. 95 00:04:56,307 --> 00:04:59,457 This is now your personal debt payoff plan. 96 00:04:59,517 --> 00:05:01,917 And listen, it's not just numbers. 97 00:05:02,577 --> 00:05:06,335 It's a strategy that truly matches your heart Let's pray. 98 00:05:07,175 --> 00:05:11,405 Father God, thank you for creating us uniquely, with different 99 00:05:11,465 --> 00:05:13,715 strengths and different motivations. 100 00:05:14,375 --> 00:05:18,635 And today as we choose how to approach our debt, Lord, give us wisdom not 101 00:05:18,635 --> 00:05:23,675 just to pick the right plan, but the plan that fits how you've wired us. 102 00:05:24,365 --> 00:05:25,655 Help us stay diligent. 103 00:05:25,835 --> 00:05:27,455 Help us stay encouraged. 104 00:05:27,455 --> 00:05:31,025 Lord, and guide us every step we take on this path to 105 00:05:31,025 --> 00:05:32,915 freedom and we trust you, Lord. 106 00:05:33,305 --> 00:05:36,275 And we ask this in confidence, in Jesus' name. 107 00:05:37,085 --> 00:05:37,505 Amen. 108 00:05:38,915 --> 00:05:42,905 You're not just choosing a method, you're choosing a mindset. 109 00:05:43,535 --> 00:05:46,835 And when your strategy aligns with how God wired you, that's 110 00:05:46,835 --> 00:05:48,995 when transformation happens. 111 00:05:49,625 --> 00:05:52,625 And if this helped you decide on a strategy, tell someone else about 112 00:05:52,625 --> 00:05:54,425 it, share this episode with them. 113 00:05:54,695 --> 00:05:57,815 And if you're just joining us, catch yesterday's episode first. 114 00:05:57,815 --> 00:05:59,105 It's the foundation. 115 00:05:59,345 --> 00:06:03,305 And don't forget, for the first 100 listeners who visit financially 116 00:06:03,425 --> 00:06:08,405 confident christian.com/master, I'm giving away a free copy of my book. 117 00:06:08,435 --> 00:06:10,115 It's called Mastering Your Finances. 118 00:06:10,235 --> 00:06:10,985 It's short. 119 00:06:11,070 --> 00:06:13,680 It's simple, but it is super powerful. 120 00:06:13,770 --> 00:06:19,440 So head to financially confident christian.com/master and grab yours. 121 00:06:19,890 --> 00:06:23,640 Now, tomorrow we're gonna talk about how to fuel your debt payoff, where 122 00:06:23,640 --> 00:06:27,690 to find that extra money in your budget to speed this whole process up. 123 00:06:28,020 --> 00:06:31,530 So let's go out there and be financially confident. 124 00:06:31,710 --> 00:06:34,200 Christians, you can do this. 125 00:06:34,920 --> 00:06:36,210 I have confidence in you. 126 00:06:36,875 --> 00:06:37,985 Have confidence in yourself. 127 00:06:37,985 --> 00:06:39,725 I want you to stay financially savvy. 128 00:06:39,935 --> 00:06:42,035 God bless you, and you have a great day today.