Since I’m feeling all nostalgic today, here’s a screenshot of the very first New Year’s financial goals list we wrote out in 2014.
Look how small the goals we set were. One of them was for a 5 year old debt of $100. Another was a $155 payment to replenish a savings account of my moms that my name was on and I had been over drafting from for my debit account. But the truth is, we couldn’t move on in our journey to financial freedom until we hit these goals.
And I have to say, finding that $100, that $155, that $170 in our already tight budget was HARD. Really hard. But now we’re able to save up for thousands of dollars of anticipated expenses and pay for things in cash BECAUSE we got these little hangers on out of the way first. Dave Ramsey calls this the snowball effect; sure we weren’t making payments on these debts, but paying off small loans first gives you a boost of confidence and motivates you into continuing on.