Apologies for missing last week, school finals are picking up and school comes first.

The key to becoming rich is to manage your money more effectively, this means getting out of longterm debt (high credit card balances, mortgages, student loans etc.) and instead just use money to your advantage (credit card benefits, interest being payed to you not from you).

If you are like most people you are in debt, probably two or three cards with anywhere from $1000 to $10000 each not to mention home mortgage, car payments etc, maybe you are barely making minimum payments. And you want out.. So do you pay off the smallest one first like some people would have you believe? or does it make more sense to pay off highest rate first and work your way down?

Some people think it is better to pay small stuff first for the “moral victory”. Crunching the numbers tell you that highest rate first costs you the least amount of money in the long run. SO why would some people would like you to spend more money in the long run to get you out of debt and on the road to finical freedom? Mindset, your too dumb to understand how debt works so if you get lots of these little victories you continue your fight. Kind of insulting right? Well then again you are the one that got into debt (which isn’t avoidable sometimes, the trick here is to make sure the thing you are becoming indebted to is worth it so at least you are not going into debt for buying junk).

Sure I am harsh, but the important thing here is not that we are friends, it is that I give you good advice, and to hurt your bottom line because I personally don’t think you are smart enough to keep on trying with out lots of little fake victories. That is just ill-logical budgeting.

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