Life insurance is how you say I love you to your family. You have coverage on yourself. If something happens to you, there's an influx of income that allows you to take care of your family. The last thing that you want to do is add financial insult on top of emotional injury.
1) List your debts out smallest to biggest on a piece of paper.
Write out everything (credit cards, car loan, everything).
2) Make minimum payments on everything except the little one.
3) Throw every extra dime that you have towards that little one.
4) When you pay off the little ones, close it out.
When you pay off that little $500 card, it feels good because you start to realize that you can do this. You feel accomplished. Then move to the $800 card and keep moving it down. Then close it out and get it out of your life.
Pay it biweekly so that it doesn't get to amortize. Interest does not get collected.
If you have debt and are paying it on a 30-day rolling cycle, every 30 days the interest accrues again. But if you pay the debt biweekly or at least every 14 days, then the credit card company does not get to amortize the debt. In other words, they don't get to collect the interest because you paid it before the interest actually accrued. That way, you are actually attacking principal. If you make a larger payment twice, do it every 2 weeks. They will not get to charge the interest and it doesn't get to amortize. The interest will come down faster and allow you to attack the principal quicker.
Chris: Make 2-year decisions. Make a decision today that you want to look back on in 2 years and be glad that you made it. It causes you to raise up and look out a little bit. (How is this decision going to impact the next 2 years? Is this a good thing or a setback?) Do things that set you up to make progress, not set you back.
Don't let your ego get involved in your decision making. There is no shame in moving back home in your 40s if you have a short-term game plan. There is no shame in getting roommates if you need them or renting out rooms in your home. You are living your life. You are not living a life for everyone else and what they think about you.
"I ain't here to make everybody happy. I'm here to do what's necessary for the people that matter most."
Stop selling grandma's house if it's paid off. That's an asset. You're suppose to hold on to your assets. You don't stop paying the taxes on something that's paid for.
Chris: I think we all are in recovery of something. I think it's important for us to acknowledge that. Get some people to lean on so that you can say, 'I'm not in this by myself.' Some people are recovering from shopping, shopping online, etc. Whatever it is, make a decision and just keep deciding each and everyday and watch where you end up. Your mess will allow you to become a messenger and you can help somebody else.