On the path to financial freedom, the journey can often seem daunting. Nevertheless, starting small can lead to significant accomplishments. In this post, we explore the strategy of tackling debt by focusing on the smallest amounts first. This method provides a sense of achievement. It also builds momentum for larger financial goals. Make sure to check out the latest episode of Thrive by the Rising Muse for the full conversation.

The Power of Small Wins

Naty Matos shares a powerful insight: “Start small. You start with the smallest one. So if you owe $10,000 here, $5,000 there, but $2,000 here, try to finish that $2,000 one first.” This approach is not just about numbers. It’s about the psychological boost that comes from achieving a goal. No matter how small. By paying off the smallest debt first, you gain a sense of accomplishment and a feeling of progress. This fuels your motivation to tackle larger debts.

Building Momentum

Clear the smallest debt first. Then, redirect the funds that were allocated to it to the next debt. As Naty explains, “Then you move that hundred dollars to the next debt.” This snowball effect speeds up the debt repayment process. It also prevents burnout and discouragement. These are common pitfalls when facing large financial burdens.

A Sustainable Approach

The key to this strategy is sustainability. By focusing on small, manageable goals, you avoid the risk of burnout. As Naty points out, “If you get and start tackling the big one, you’re going to burn out.” This method ensures that you stay engaged and motivated throughout your financial journey.

Starting small doesn’t mean thinking small. It’s about creating a sustainable path to financial freedom, one step at a time. By focusing on the smallest debts first, you build confidence and momentum, setting the stage for tackling larger financial challenges. Remember, every small victory is a step closer to your ultimate goal of financial independence.

Subscribe now to our blog for more insights and strategies on achieving financial freedom. Let’s embark on this journey together! Also, click below for the full episode of Thrive by The Rising Muse