Fastest Way to Pay Off Debt

You went from 50 grand in debt to millionaire in four years. What are the fastest ways to pay off your debt?

Well, I think there's four steps, fastest ways to pay off your debt. And I think Dave Ramsey is really wrong about this. Now, he's obviously helped a lot of people get out of debt. Pretty logical guy, but I think his snowball theory is just plain wrong. So what he says is you pay off the smallest debt first because then it builds momentum, hence a snowball. But that's just logistically and financially inaccurate. What you do is you pay off your highest interest debt first, and that's a big difference. So let's say you've got one credit card with 0% on it, one credit card with 15% interest on it, and one credit card with 39% interest on it. You pay nearly all your available funds to pay your debt off on the 39% interest, even if that's a bigger amount of money. And it doesn't really look like it's touching the sides too much because debt compounds, wealth compounds up, but debt compounds down. So contrary to what Dave Ramsey is saying, you take the highest debt first, the highest expense interest, and you, you pay that off as quick as you can, as much as you can, and you try and earn even more money and you have a race with yourself. If you've got three credit cards and in four weeks you paid off one, you've only got two. Oh, that's good. I've only got two, I had three and now I've got two. But that is just so like base.

At the end of the day, you.

Want to look at how much is your total debt this month, how much have you chipped down? How much have you chipped down? And look at it like that. And you want full speed ahead, momentum of paying your most expensive debt off. Now in some instances, you can remanage your debt by getting longer term lower interest debt to pay off shorter term higher interest debt. Or you can juggle your zero percent. Not financial advice, it's financial experience. You want to go and do your research. But there's a bit of hackery that balance transfers. There's a bit of hackery that can be done there, but you need to be careful about fees of transferring over. Yeah, but, and what you want to be careful of is not racking up a load of debt on the 0% and then all of a sudden it reverts to a high percent and you weren't able to pay it back, but you pay your highest interest debt off first. And most. And then your lowest debt, that's what you pay the minimum on.

And when you say, and just to clarify, it's highest percent, not the biggest amount, so I might have a bigger.

Amount on a really low percent is the highest interest.

Yeah.

Essentially what is costing you more each month, if you look at your cards and what they're costing you, that is what you've paid off and what you still owe. And what you still owe is going up. Which one, which one of your debts is going up by the most each month. That will usually be the highest interest. You pay that off first. And, and mostly what you don't do is you've got three debts and you divide your money equally, a third between each debts. If you've got a big debt with high penalty interest, you pay 90 of that off, 5% of that, 5% of that. So that's step one that will get you out of debt the quickest. Okay. The second thing is you save, then you invest and then you spend in that order. So most people spend, spend, spend.

This recent budget should warn you that your pension is not safe and secure and they're coming for your inheritance. Do you even know how much is.

In your pension or where your pension is invested?

Add to this the recent inheritance tax.

Grab on your pensions and, and the.

Risk of a market crash.

You probably didn't know this and I.

Didn'T until recently, but physical gold can.

Be added to your pension pot.

Gold is inheritance tax free and has grown 700% in the last 20 years. You probably know from my content I'm investing heavily in silver and gold and that's why I've partnered with direct Bullion. Myself and Nigel Farage are brand ambassadors and direct bullion can help you with gold to protect and grow your pension. I buy my gold and silver from direct bullion and I don't earn any money on any purchases of gold or silver if you buy direct from direct bullion. So if you go to robmore.directbullion.com you can get a great price on your silver and gold and you can get the pension gold investing guide completely for free. As you know, I don't do many strategic partnerships and when I do, I do them with people who are credible, who've been doing it a long time, who invest in things that I invest into and gold and silver's going wild. I'm investing heavily in gold and silver.

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Some people spend save a tiny bit. Some people spend Save a tiny bit. Invest a tiny bit. You should spend as little as possible and still have a good life. Save quickly and invest as much as possible. There's only two reasons that you save. Number one is you store money waiting to invest it, and number two is you stop yourself wasting it. You don't save money by putting it in the banks because, well, if you do that, just accept that it's going to cost you and you're going to have less. So the two reasons are stop yourself wasting it and just hold it latent and ready to then invest. So most people, they're paying their mortgage first, their car loan second. Well, actually, they're paying the government first in tax, the mortgage second, the car loan third, which is the bank and their Netflix subscriptions and their gym memberships and everything else. And then they're either not getting paid or they're paying themselves. 15th, stop paying yourself 15th, start paying yourself first. Which means initially, when you earn money, immediately take a chunk of it to save, stroke, store and then invest and spend what's left. Because if you do it the other way around and you spend first, you'll have nothing left.

It's such an easy hack, but setting up a direct debit to Vanguard makes all the difference.

Yeah, you like if you don't see it, you didn't even know it was there. Or.

So much easier. Yeah, you look six months later. Oh, fuck me. I'm doing all right.

Yeah. So direct debit into your savings account to then invest direct debit into Vanguard. In fact, it's quite smart to have three or four different direct debits into three or four different asset classes. You can direct debit into your isa.

Yeah.

Okay. Number three then is you need to stop all unnecessary and especially emotional spending. So most of your wasted money is either when you're high or low. I'm depressed. I want to spend money to feel better. I'm elated. I want to spend money to celebrate. Oh, I've had a hard week. Let's go bender all weekend and spend 2,000 quid. I want. Want to celebrate. Go spend all your money. I'm feeling depressed. I want to medicate myself. I want to buy something to feel better.

Retail therapy.

I want to spend money to feel better. And then you have the thing, you feel better for about a minute, and then you look at your credit card and you feel even more depressed. So you have to cut this bad habit. Spend money on things that really give you value in your life and don't spend money on the whim of an emotion. Most of your wasted money, most of your bad decisions in business, most of your bad decisions in your relationships are on the whim of an extreme emotion. Probably in the 10 seconds that you got triggered ah it and then you did it because you got triggered. Like there's nothing wrong with price comparing things. You go out, you want to spend some money, fine, note down the prices, don't buy them there and then and go price compare and see if you can get them cheaper. By the time you get home you probably won't want the thing anyway. And then number four is to earn more money. So when talking about getting out of debt, a lot of people don't talk about we'll just earn more fucking money. So get a job in sales, start a company, get a job in marketing where there's no ceiling on the upside, do a bit of overtime, find a higher level, higher ticket product to sell. My friends are selling 400,000 pound high fives. Even at 10% commission, that's 40 grand. Sell one of them, that's paid all your debt off for life maybe. So step one, pay your highest interest first. Step two, save, then invest, then spend. Step three, stop all unnecessary, especially emotional spending. Step four, earn commissions, get a job in sales or start your own business. And it won't be long before that 50 grand or that 20 grands worth of debt is to zero. Then on to a millionaire, then onto a millionaire. One thing I will add as well is the more you learn, the more you earn and you don't know what you don't know. Do you know how debt and credit work? Do you know how the money system works? Do you know how to create value? Do you know how to get a significant pay rise? You know how to start your business? Do you know the forums? You know how to make, manage, multiply and then maintain money. And you know how to create multiple streams of income.

These are the things you need to.

Be learning and if you want to learn them through me, you can for less than 50p a day. Which even if you're in debt, you can afford that. So the link is Money School and that's my global online Money school. My vision is to help as many people on this planet get better financial knowledge. And I've got hundreds of hours of content, courses, resources, masterclasses in money School to help you start and scale the business. We've got a 10 week series coming up on we're calling our Fast Start Business accelerator. Most people don't know how to be VAT registered. You know they don't know how to form a company. They don't know the licensing and regulation you need. All these logistics, which are boring. So we're going to do a business masterclass series that covers all that. We've got beginner advanced AI masterclasses, because that's really a great way to grow a business. Now we've got how to make three grand a month on three hours a week and ten grand a month on ten hours a week. We've got masterclass series on this. We're doing a homeschooling series for kids. So we're a few modules in teaching kids under the age of 18 the 12 fundamental laws of money that they don't teach you in school. So that's all in money School. The link is money.school boom. Boom.

Foreign.

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