Updated: Dec 8, 2020
How do you start building wealth? First, you MUST get out of debt! In 2010, I read Dave Ramsey's book, Total Money Makeover. It changed my life forever! There are a few basic principles that I feel should be the foundation for everyone as a new graduate PA or an experienced PA looking to change their financial situation.
The Debt Snowball:
List all of your debts, smallest to largest. Do not concern yourself with the interest rates!
Attack the smallest debts first. Make only the minimum payments on all other debts while you pay off the smallest debt as fast as you can!
ROLL SNOWBALL ROLL! Once the smallest debt is gone, use its payment and apply it to the next smallest debt.
This sounds very simple, and that is because it is! Make a budget and begin paying off your debt. It is very fulfilling and works!