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Pay Down Your Debt Fast: The Snowball Effect

Pay Down Your Debt Fast: The Snowball Effect

    Paying for school sucks.

    You end up getting a decent education (maybe), but come to quickly find out that most of what you learned is not exactly everything you need in the real world. In fact, you may find that you learn more in the first six months at your new job than you did during your entire time at school!

    What hurts worse is that most people, at least in the US, are paying more every year for school. This means larger and larger amounts of education debt as well as consumer debt. Think of all that pizza!

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    But, the size of your debt doesn’t have to scare you. Trust me; it scared the hell out of me for a while. This is how I dealt and continue to deal with it.

    Budget

    A debt snowball doesn’t work without a good budget in place. I know that this may be the last thing that you want to hear about getting rid of your debt, but seriously, it won’t work without a budget. I didn’t realize the strength of budgeting until I got on the You Need a Budget bandwagon and followed that “system.” This helped me see my life in the form of item buckets and a “Buffer” so I could get close to being a month ahead on all my bills.

    Having this leeway in your money is the first step to trying to find the little extra each month to pay down your debt fast. When you have the month buffer sitting in front of you, you can more realistically and with less fear, approach paying down your debts.

    Make the list

    Next, you need to know the exact amount of each of your debts as well as their interest rates and minimum payments. After you get this information you can make the list in either two forms:

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    1. In order from lowest to highest amount.
    2. In order from highest to lowest interest rate.

    To be honest, most people will tell you to pay the highest interest rate debts first. That makes sense for the most part, especially if you want to save money with some debts with ridiculously high interest rates. But, I chose to pick my lowest amount first.

    Why?

    Because I could get satisfaction of paying off one of my debts and see the effects of the debt snowball faster. That’s all.

    You should take it by a case to case basis though. Try to weigh how much you owe against the interest rate to see which method is better. You may even need to approach it a different way, like if you have a very low debt amount with a super high interest rate and a huge debt amount with a mediocre interest rate. You have to see which way you are paying more money in the long run, then avoid that way.

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    The law of three

    After you know your minimums and add them and everything else you need in your life to your budget, you should have some shillings left. If you don’t, this isn’t the post to tell you how to make more money. Instead, try to stick to the absolute essentials in your budget. If you have entertainment money; cut it. We will create some of that shortly.

    Now that you have some extra money un-budgeted for the month, you have to split it into three equal pieces for:

    1. Savings
    2. Debt
    3. Fun money

    Some debt gurus will say that you shouldn’t have any fun money, you should strictly concentrate on paying down debt and saving. I say, “screw that,” that is unless you are in dire straights and need out of debt in a hurry.

    This extra money you have for debt, that is the money that you will put on top of your minimum payment to your first debt in the list you made above. Once that first debt is payed off then you will move the minimum plus the extra money for debt to the next debt payment and so one.

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    See it? A snowball!

    Here is what is awesome. None of this accounts for you making more money during the month. As soon as you start pulling in any more money, you can throw it towards you debt, or use it as more play money, or buy some pizza. It doesn’t necessarily matter.

    Now calculate

    You can do this on paper, if you are like a crazy mathematics ninja, but I prefer the digital way because it is easier to keep track of and idiot proof. One of the best ways that I have found that works on Mac and PC is with the trusty ol’ Vertex42 Debt Reduction Calculator Spreadsheet. I first saw this thing mentioned on Get Rich Slowly in 2006, but it still holds true today. Since then I have migrated to an iPhone app called DebtPayoff Pro that is great. There are many more out there, but these are the ones that have worked well for me in the past and present.

    Now that you have a tool you can enter all your debt information, how much money you are going to throw extra toward your debt, and the starting balance date. Then you can get an idea of when certain debts will be paid off as well as when the total debt will be paid off. If you are putting away a decent amount of money extra toward debt, you are going to be very surprised at just how fast your debt diminishes.

    Now party

    Paying down your debt fast can feel like the biggest burden in your life, especially if you have a lot of it. The truth of the matter is, if you can cover your minimum payments right now and have a little money extra every month, you can put a serious hurtin’ on your debt.

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    CM Smith

    A technologist and writer who shares advice on personal productivity, creativity and how to use technology to get things done.

    Design Is Important: How To Fail At Blogging 7 Tools to Help Keep Track of Goals and Habits Effectively 6 Unexpected Ways Journaling Every Day Will Make Your Life Better Why Getting Things Done is the Best Productivity System For You How to Beat Procrastination: 29 Ways to Beat It Once and for All To Automate or not to Automate Your Personal Productivity System

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    Last Updated on July 4, 2019

    25 Killer Sites For Free Online Education

    25 Killer Sites For Free Online Education

    Whether you’re five or ninety five, the internet has a lot to offer. Particularly when the topic is education, the resources on the internet are endless.

    Best of all, many high quality sites are completely free. From history to coding, excellent free online education awaits on the following 25 sites.

    1. Coursera

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      Coursera is a website that partners with universities and organizations around the world. This brings a wide variety of topics and perspectives to one searchable database.

      Coursera is a powerful tool for free online education, and includes courses from many top universities, museums and trusts. This gives the site an extremely wide range of in-depth courses.

      Coursera is extremely useful if you’re looking to study many different topics, or want courses from different schools and groups.

      2. Khan Academy

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        Partnering with many post secondary schools, Khan Academy offers a useable, well organized interface. Also curating many courses from around the web, Khan Academy offers impressive depth on many different subjects.

        Among the more well known educational sites, Khan Academy is also incredibly useable, which may make it easier to keep learning goals.

        3. Open Culture Online Courses

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          If you are struggling to find exactly the material you are looking for, try Open Culture’s listing of free online education courses. The page highlights 1000 lectures, videos and podcasts from universities around the world. The site features a lot of material found only on universities private sites, all in easy to browse categories. This means you can find hundreds of university courses, without having to visit and search each university’s own site.

          Open Culture’s list features courses from England, Australia, Wales and many state universities around the United States. A very helpful resource for finding many courses in one area of study.

          4. Udemy 

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            Udemy’s free courses are similar in concept to Coursera’s but additionally allows users to build custom courses from lessons.

            Working with many top professors and schools, the site mixes the customizable platform of other sites with a heavy emphasis on top quality content. This is another site however, that mixes free and paid content.

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            5. Academic Earth

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              Another site with courses from many different schools is Academic Earth. Much like the three sites above, Academic Earth brings together top notch courses from many different sources, and focuses on offering a wide variety of subjects.

              Academic Earth lists courses by subject and school, so it might be easier to find what you’re looking for.

              6. edX

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                Another great option for free online education is edX. Also bringing together courses from many different schools, the site has impressive, quality information for everyone. edX covers a great range of topics.

                7. Alison

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                  Unlike the previous sites on this lists, Alison is a free education site offering certification in some areas. Alison offers courses mainly in business, technology, and health, but also includes language learning courses.

                  It’s a great option if users need certification for their learning as Alison also offers school curriculum courses.

                  8. iTunesU Free Courses

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                    A very convenient place for free online education is iTunesU, because it integrates seamlessly with your iPod, or any app-ready Apple mobile device. On iPad, iPhone, or iPod touch, users download the iTunesU app.

                    Desktop users can access  iTunesU on the upper right hand corner of the iTunes Store. iTunesU is also convenient because the store is categorized much like iTunes.

                    Users can search learning materials in many different ways, including genre and topic. However, courses are often a mix of free podcasts or videos, and paid content.

                    ITunesU does include courses on a pretty wide scope of topics, but does not integrate with Android, Google or Windows mobile devices.

                    9. Stanford Online

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                      Your hub for all the online offerings from Stanford University, Stanford Online offers self-paced and session based courses. While Coursera features some courses from Stanford, many classes are only available via other hosts. Some courses require iTunes, but most are completed in your web browser.

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                      Stanford Online is a great site for high quality courses, though the topics are somewhat limited compared to sites partnered with more than one school.

                      10. Harvard Extension

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                        Like Stanford Online, Harvard Extension features free online education courses from Harvard only. This is another excellent source for top notch course material, though the course variety is less rich than multi-school sites.

                        Additionally, Harvard Extension allows you to search for courses by professional certificate. This makes it much easier if your online education goal includes certification.

                        11. Open Yale Courses

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                          Open Yale Courses echoes Harvard Extension and Stanford Online, in that it offers only courses from Yale. While the site is similarly limited to topics taught at the school, Open Yale Courses offers a lot of videos of actual campus lectures. The availability of videos makes the site a great option if you’re looking for quality courses, but learn better by watching than by reading.

                          12. UC Berkeley Class Central

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                            Much like the other schools on this list, UC Berkeley has a variety of free online education options. The school has slightly fewer courses than the schools above, but includes some supplementary lectures, webcasts and RSS Feeds, making it easy to keep up with the topics you choose.

                            13. MIT OpenCourseWare

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                              Similarly, MIT offers a variety of free courses. The school has a comparable number of courses to the schools above, plus includes very in-depth course materials on the subjects available. MIT also offers free RSS feeds, a convenient way to continue learning.

                              14. Carnegie Mellon Open Learning Initiative

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                                Carnegie Mellon’s free online education site is comparable with the other school’s on this list, however, Open Learning Initiative also covers a smaller range of topics. But for the topics that are covered impressive, in-depth material is available.

                                15. Codecademy

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                                  Codecademy is a website dedicated specifically to teaching coding. Where other coding sites follow an example/practice session workflow, Codecademy includes a live practice window. This means you can practice coding while still viewing the lesson material.

                                  The courses at Codecademy are well written and easy to follow and the website is organized very nicely. Codecademy features a centralized dashboard where you can monitor your progress, plus organizes lessons into complete modules. This lets you learn an entire language without needing to pick the next course manually.

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                                  16. Code

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                                    Code is another website focused on coding and app writing. A site with high quality courses, Code also features learning options for kids.

                                    In addition to kid friendly courses, Code offers free online education classes on a wide variety of technology topics. These classes include app writing, robotics and Javascript.

                                    Most of the courses are also geared in a such a way that they can be useful in a classroom setting. This makes Code a great resource for harder to find coding topics, as well as various learning settings.

                                    17. University of London Podcasts

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                                      The podcast page on the University of London website is another great source for free education. While the courses are limited to podcasts, the site features podcasts from it’s own campus, as well as eleven universities in and around London. This gives learners a wide base of topics and lectures, but still ensures in-depth material.

                                      18. University of Oxford Podcasts

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                                        Similar to the University of London, the University of Oxford features many different podcasts. Most are public lecture series or lectures from visiting professors, with several different recordings available.

                                        The advantage to this particular site is that podcasts are organized into series, making it easy to subscribe to multiple lectures on one topic. Another good site for thoroughly in-depth lectures.

                                        19. BBC Podcasts

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                                          For the more casual learner, the BBC offers a wide variety of podcasts on many different topics. Most podcasts are updated weekly, and focus on everything from finance, to sports, to current events.

                                          Through the World Service line of podcasts, there are also many in different languages. The focus of these podcasts are less in-depth and theory based, which may be more accessible to the average person.

                                          20. TED-Ed

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                                            Another great destination for more general learning is TED-Ed. From the same people that brought you the all encompassing, motivational web series, comes a site chocked full of educational videos. Most include impressive animation, and all are ten minutes long or less.

                                            Not only is TED-Ed an excellent site for the curious, it also includes supplemental materials and quizzes on the videos. This makes the site extremely useful in formal education settings, as well as in entertaining ways to brush up on new discoveries and topics.

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                                            21. LessonPaths

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                                              LessonPaths is another great tool for those looking for a more usable and convenient way to access learning material. On this site, users create link playlists of their favorite learning materials from other sites. Users then rank these collections, making it easy to find many different high quality, accessible sources on a given topic.

                                              22. Memrise

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                                                Another impressive free online education site offering ease of use and convenience is Memrise. Available both on desktop and as an app, Memrise is a particularly powerful tool if you are studying a language. The site encompasses many other topics as well, though some of the course material is user generated content.

                                                Part of what makes Memrise special is their integration of games into the learning materials, mixing learning with entertainment.

                                                23. National Geographic Kids

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                                                  The kids site for National Geographic is another site that makes free online education applicable for younger users. For those looking for kid friendly education, a large variety of games, puzzles, videos and photos keeps kids interested on this site.

                                                  National Geographic Kids doesn’t organize learning into courses, making materials available by topic and medium instead. This makes National Geographic Kids a good option for those looking for a more casual learning environment.

                                                  24. Fun Brain

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                                                    Fun Brain is another good option for kids who want to learn online, but focuses on games and fun puzzles. Particularly focused on math and reading, Fun Brain’s game based approach can be valuable if the child in question struggles to pay attention.

                                                    Fun Brain offers rewards and challenges as well, and is another site aimed at a casual learning experience for kids K-8.

                                                    25. Whyville

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                                                      Similar to the sites for kids free online education is Whyville a destination for preteen online learning. The site includes a variety of social features, with a focus on learning materials geared for young teens.

                                                      Whyville also mixes in educational games, to make the site a well rounded option for kids too old for simple games, but too young for heavy reading based material.

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                                                      Featured photo credit: Dai KE via unsplash.com

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