Prashant N Mhatre: May 2007

Debt Free Living - The Debt Snowball Method

The snowball method is ridiculously easy to understand. It consists of the following simple steps:

Find some way to free up a bit of extra cash each month. Either get more money coming in (hard to do) or else cut down on your expenses (do without your daily latte if you have to!). Note: Debt consolidation is one way to reduce the expenses, but it's not ideal and you should look hard at your budget before going that route. See below for some ideas.
List your debts from smallest balance to largest. For debts of comparable size, the ones with the highest interest rates come first. Pay the minimum required payment for each debt on your list. Don't skip any payments, you want to keep your credit report clean.
Add the extra money you've freed up to the monthly payment for the #1 debt on your list, the one with the smallest balance. You're accelerating your repayment of that particular debt. The extra money typically goes right against the debt principal; a small amount each month can make a big difference to the amount owing over the span of several months.
Continue paying extra on that one debt until the debt is repaid in full. This will likely take several months, perhaps even two or three years. Note: It's important to not incur any further debt during this process, otherwise it won't work. Stop buying things on credit.
When the debt is repaid that frees up even more money on a monthly basis. Cross the debt off the list. Add the debt payment amount to the extra cash you've already freed up. This new, larger amount is now available to pay down another debt.
Repeat the process with the next debt on the list. Continue paying down debt until all your debt is gone. (Except perhaps for your mortgage although paying it down should also be one of your goals.)
If you follow through with the plan and it will likely take years to complete you'll find that your total indebtedness starts to decrease at an accelerated pace. As one debt is paid, the money you put towards that debt is immediately put to use paying off a different debt, and so on, and so on. It's called a "debt snowball" because it's like starting an avalanche (of debt repayment!) by letting a single, small snowball roll down a mountainside.

Finding Extra Money

Getting started is the hardest part of the debt snowball method, because to start an accelerated debt payment plan you need to find extra cash on a consistent, monthly basis. If you're already strapped for cash (because of your burden of debt) this will seem very hard. You have two basic choices:

Make extra money. A part-time or second job is possible here. Or maybe you can make money online. It's going to take time and effort on your part.

Cut your expenses. This is usually the best option. Instead of adding the stress of more work to your life, look for ways to cut your expenses. Yes, consolidating your debts is one option, but you should look at the other options instead. Cut out the movie dates, for example, and watch movies at home. Cut out desserts and those fancy coffee drinks. (You'll reap some health benefits, too.) Don't spend money frivolously. Budget your spending, and stick to your budget.

-- From nodebtisgood.com

Labels: Reduce Debt

Seven day diet plan formulated by GE

Day one

All fruits except banana. Your first day consists of all the fruits you want. It is suggested that you consume lots of melons, especially watermelons and cantaloupes.

Day two

All vegetables. You are encouraged to eat until you are stuffed with all the raw and cooked vegetables of your choice. There is no limit on the amount or type. Avoid oil and coconut while cooking vegetables. Have large boiled potatoes for breakfast.

Day three

Any mixture of fruits and vegetables of your choice. Any amount, any quantity, no bananas yet and no potatoes today.

Day four

Banana and Milk. Today you will eat as many as eight bananas and drink three glasses of milk. You can also have one bowl of vegetable soup.

Day five

Today is fasting day. You will eat one of rice. You also have to eat six whole tomatoes and drink 12 glasses of water to cleanse your system of excess uric acid you will be producing.

Day six

Today is another all vegetable day. You must eat 1 cup of rice today and eat all the vegetables you want, cooked or raw to your heart’s content.

Day seventh

Today your food intake will consist of 1 cup of rice, fruit juice and vegetables you care to consume.

Congrates!!!! By you now you are five to six kilos lighter. Repeat the program if you wish after giving a break.

Labels: Diet Tips, Weight Loss

Best Clean Jokes

Say What?

There was an elderly man visiting a doctor for his check-up. As he was leaving he asked the doctor if he could recommend a specialist for his wife. "What's wrong with her?" asked the doctor. The old man explained that her hearing was getting so bad that it was almost embarrassing. The doctor said he knew of several specialists that could help but he wanted the old man to do a little test when he got home to help the doctor determine the severity of her hearing loss. The doctor said "When you get home, make sure your wife's back is turned to you and ask her a question. If she doesn't respond walk closer and ask her again. Keep doing this until she answers and let me know the results".

That night when the old man opened the door of his home he could see his wife in the kitchen preparing dinner. She was at the counter with her back to the door. "What's for dinner?" the old man asked. His wife did not respond so he walks to the doorway of the kitchen and asked the question again. Still, he was greeted with silence. This time he walks up just behind her and asks once again "What's for dinner?" His wife spins around a bit agitated and says "For the third time, Fried Chicken!!"

The Good Deed

A lady lost her handbag in the bustle of Christmas shopping. It was found by an honest little boy and returned to her. Looking in her purse, she commented, "That's funny. When I lost my bag there was a $100 bill in it. Now there are 100 $1 bills." The boy quickly replied, "That's right, lady. The last time I found a lady's purse, she didn't have any change for a reward."

Dentist Visit

A woman and her husband interrupted their vacation to go to the dentist. "I want a tooth pulled, and I don't want any pain killers because I'm in a big hurry," the woman said. "Just extract the tooth as quickly as possible, and we'll be on our way."
The dentist was quite impressed. "You're certainly a courageous woman," he said. "Which tooth is it?" The woman turned to her husband and said, "Show him your tooth, dear."

HOW WELL DOES COLD WATER CLEAN?

A man went to visit his 90 year old grandfather in a secluded, rural area of the state. After spending the night, his grandfather prepared breakfast for him consisting of eggs and bacon. He noticed a film-like substance on his plate and he questioned his grandfather....are these plates clean?
His grandfather replied.... those plates are as clean as cold water can get them so go on and finish your meal.

That afternoon, while eating the hamburgers his grandfather made for lunch, he noticed tiny specks around the edge of this plate, and a substance that looked like dried egg yolks...so he asked again......are you sure these plates are clean?

Without looking up from his hamburger, the grandfather says.....I told you before, those dishes are as clean as cold water can get them, now don't ask me about it anymore!

Later that afternoon, he was on his way out to get dinner in a nearby town. As he was leaving, Grandfather's dog started to growl and would not let him pass.... Grandfather, your dog won't let me out. Without diverting his attention from the football game he was watching, Grandfather shouted, COLDWATER, GET OUT OF THE WAY!!

Labels: best clean jokes