21st Century Academy

The snowball effect is something that applies to many of the concepts and ideals that you’ll learn throughout the course of your financial empowerment program. But what got me thinking about it today was something I ran across online that talked about the snowball method of getting out of debt. And it occurred to me that its opposite was very much true for building wealth.

The Financial Snowball Method Of Debt And Wealth

What this very popular method of debt reduction states is that a person should pay off their lowest-balance debt first, regardless of other factors like interest rates and so on, to capitalize on the psychological effect of accomplishing something very worthwhile. Once that is done, the action moves to the next lowest balance, using the newly freed cash to pay on that balance and make faster, more motivating progress.

There is a lot that we can learn from this method, and in many ways this fits collaboratively with exactly what Jamie McIntyre has been teaching us all along. Not only are you making and seeing real progress, but you are building that positive mindset of change and financial success that is so necessary for wealth. And all that progress and positivity is attracting more progress and positivity, so it is enhancing the snowball effect even more.

Throwing Snowballs At Creating Wealth

If you think about it there are a lot of ways you can capture the power of the snowball effect to create wealth and maximize this financial empowerment program. A few examples include

• Starting out small with wealth education, and snowballing that effort
• Starting small at saving, and snowballing that effort
• Starting small with investing, and snowballing
• Starting small with positive mindset
• Starting small with debt elimination, then transferring snowball effect to savings, investment, and creating wealth

I’m guessing that you can add to this short list, too (and please do in the comments below). And remember that when you apply the snowball effect to wealth-building, the effect grows more quickly and more beneficially, because you add the advantages of investment, interest, and dividends to the money you invest. So your wealth snowballs will grow bigger and even faster than those of your debt repayments.

Here’s to your snowballing success!

Sean Rasmussen
21st Century Academy
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