Just Work the Plan!

[Music] brought to you by the every dooll app start budgeting for free today derekson Dallas hi Derek what's up yes sir so my wife has a question um where is she we've taken she's at work right now okay she we we took FPU we've got everything listed out from smallest to largest we've knocked out some debt already with with the bonus that I got she gets a 10year bonus in January uh she got seven school loans here about 19,000 worth and her her question is for peace of mind the the credit cards are a lower balance so theoretically going by the program we'd have to hit the school loans but if if we I'm sorry you said the credit cards are a lower balance you me the school loans are lower balance no the school loans are are larger balances but but lower monthly payments and if if we did it Accord according to FPU we we do the school loans before the credit cards but we did the credit credit card whoa whoa whoa whoa whoa you must have flunked you said you just told me the the balances on the credit cards are smaller uh yes okay you're supposed to pay off smallest to largest not payment balance there is there's two school loans that are larger than or smaller than the the credit card okay okay so what there the question is if we pay off the the larger balance on the credit card to get up to free up a larger monthly payment to go towards other things versus if I pay off two credit cards it frees up about7 can I be smart for a second go ahead go ahead if you had a plan it got you where you are why would you question this why don't you just do it we've taught 10 million people how to do this but why are you trying to be a genius now I'm not she's just wanting the the snowball to be bigger she's wanting the snowball to be working her way it doesn't work her way I gotcha pay off the smallest to the largest I gotcha all kinds of Studies have backed up that what we're doing actually works including 10 million people have going through Financial Peace University and getting out of debt yes sir yes sir I agree okay I'll get past the smart like and I'll calm down a second now let's try a second let's go back at it for a second so the do you need to be do we need to walk through reinforcement on why we teach that did you not you all didn't grasp that from Financial Peace University no we we understood it it was just a question that she wanted more reassurance she she's a government official so she was was out a lot of the classes and I was the one that was attending so uh just because required meetings that she had to attend so so she like missed the class yeah he does need reinforcement Dave Derek it's okay to admit it you need the reinforcement to be able to answer the question no no no no no she needs to go through that lesson well that's true that's the answer that's true because she wants a logical understanding and because she doesn't have this knowledge base that you've got that's okay that makes more sense than I went to class and I disagree while I'm broke yeah no we we don't disagree it was just no not we her okay cuz she was the one asking the question she's not here but but she now I can defend her because she has an honest question about something cuz she doesn't know she didn't go to that she didn't go to that lesson right correct okay cool that's fine I completely I completely understand that so let's go back then and uh instead of picking on her um because she's not here that's not fair but um we can do one or two things all right let's do number one uh when did you take the class uh it was started a few months ago we just finished it up like three weeks ago before right after Thanksgiving at your church or online at church yes did you get the online application as a part of the package that you guys got into yes sir do you have access to the lesson to watch it uh yes sir okay pull up the lesson on debt and the two of you sit there and watch it and don't you say a word let her let her catch up with the knowledge base okay because here now that that that'll help now but then here's what for for your benefit at this moment and the rest of the people listening here here's what she's going to hear for the first time and that is this I personally when I started this as a a math nerd wanted to pay off the highest interest rate first which is mathematically correct it's only mathematically correct if you have the same probability of completion however when you pay off the highest interest rate first or you start monking around with paying off balances that feel good you don't have the same probability of completing the whole get out of debt plan and when you enter probability into the mathematics because you messed with the behavior tool then you you you you lower your complete rate and all that Garg to say if you don't go get out of debt because you screw with the plan then your plan was dumb you know that's what it amounts to so what what we've proven is is that personal finances 80% Behavior it's only 20% head knowledge it's not a math problem if we were doing math we wouldn't have gotten in credit card D it's not a math problem it's a behavior problem so the way you attack a behavior problem is with a behavior based solution not a math-based solution that's what we started doing 30 years ago and it's been highly successful that's why I was leaning back in and being a smart elic Okay uh but I didn't understand at the moment that I did that that your wife hadn't even seen the lesson so bad on me so uh anyway now so the way we what we know is is that if you go to the gym and you work out and you eat salads for a week and you gain 4 lbs you will quit even if it would work a month from now you won't keep doing it so your probability of completion is zero you have human beings have to have a sense of traction we have to have some solutions we have to have a sense of progress a feedback loop psychologists call it and we need a feedback loop that says you're winning if I go to the gym and I lose weight I'll keep going to gym if I quit eating Big Max and I lose weight I'll quit eating Big Max you will keep in the loop if you pay off some debt you'll pay off some debt you'll pay off some debt you'll stay in the food back Loop that's why the debt snowball works and that's why it's been more successful than any other get out of debt plan in America create your free every dooll budget today the simplest way to budget for your life