The Debt Snowflake

The Bible advises, get rich slowly. The same principle can be applied to debt reduction. This method is called the debt snowflake. It could be used by itself or with either of the other methods listed in this blog. It is a pretty simple idea. One snowflake falling on the ground is no big deal, but thousands of snowflakes over a very long time results in large accumulations even in a desert, like Antarctica, where the measured rainfall (snowfall?) is less than ten inches a year.

Decide not to put that $3.50 latte on your debt card? Good for you but don’t stop now. Put the expense you didn’t make in a note book or put the cash in a jar. Then at the end of the month or sooner if the amount is large use that money to pay off the credit card. Make it a game.

Anything can be a snowflake, a small debt repaid by a friend or even the difference between a brown bag lunch and the cost of the company cafeteria. Snowflakes can also be proactive, the return on a yard sale or pay from a part time job. Don’t limit yourself to thinking that all snowflakes are small. Liz Weston differentiates between big snowflakes and little snowflakes thusly, “A glacier calves when a big chunk of ice shears off its face, typically landing in the water with a big splash. Debt calving is when you get a big windfall and throw chunks of it at your debts.” For example if you receive an inheritance or a sizeable tax refund, use that money to pay down your debts. That is exactly what most Americans did with the recent $600 tax windfall checks.

I have been in retirement snowflake mode for about four or five years. I have been placing as much money in savings as possible. I call it savings overdrive. By the way, you can point your finger at me and mention my beer, lunch at our overpriced cafeteria at work, and an occasional expensive vacation. None of us are perfect.

Yesterday I thought of one caveat I would like to add. While I was cutting the grass with my ancient decrepit lawnmower, the entire front wheel assembly broke off its rusted frame. I knew I had to replace the thing but I was hoping to make it to the end of the season when all leftover lawnmowers and used motorcycles go on sale. I borrowed the neighbor’s machine and finished the job. I believe I will have to cut the grass one more time before the cold sets in for good, so I won’t be buying a lawnmower in December as I hoped. No harm, no foul, but what if I put off something like changing the oil and filter in my car for several years and this resulted in a major engine failure? As the Fram man says, “You can pay me now or you can pay me later.” Make sure your snowflakes don’t cause a bigger problem down the road.

Otherwise, you are safe using this method. It is endorsed by King Solomon, and remember, all avalanches, snowballs, and icebergs are nothing but a very large number of snowflakes.

Proverbs 13 (Bible in Basic English)

[11] Wealth quickly got will become less; but he who gets a store by the work of his hands will have it increased.