Best method to eliminate debt

#NaymarChallenge and you personal finances: debt.

You’ve probably seen Brazil’s star player fake a trip during their match versus Mexico. Credit:乖乖乖

After rolling around for what seemed like an eternity and drawing the Mexican’s ire, Naymar would soon become a meme where thousands across the world are using him to make a point!

Naymar and Personal Finances

What did you think of his theatrics?  As he rolled and rolled this got my creative juices flowing!  Let’s apply the #NaymarChallenge to eliminate debt.

You ready?! Let’s go!

First, list all your debt from smallest to largest.   The interest rate does not matter unless two payoffs are similar then you can list the highest percentage to lowest.  You also include the payoff, minimum payment, new payment.

The goal is to work on the first debt while making the minimum payments on the debts listed.  While working on the first listed debt Naymar (roll) additional money into this debt.  You should be making the minimum plus the additional money on the debt being worked on.   In the example below, Card1 payoff is $150 with a minimum payment of $25.  An additional money, $125, is combined with the minimum making the New Payment $150.

Screen Shot 2018-07-14 at 11.58.46 AMAdditional Money

There are different means to get additional money.  Look around your home and sell those old electronics you no longer need.  Look at taking an additional shift or asking for overtime.  Get creative here!

As soon as the listed debt is eliminated, the minimum payment from this debt is combined with the minimum payment for debt immediately below.  Now the amount being paid towards the debt has grown.  No longer is the minimum payment being applied.  Notice how Card2 has a New Payment amount, $45.  This was the minimum from Card1 plus the minimum from Card2.  There is  no additional money on this payment.

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Follow this pattern until all the listed debts are paid.  Remember any time you payoff the debt that minimum payment needs to be applied to the next debt.   The temptation will be to use that new found money to purchase something new. Don’t!  Naymar your debts as quickly as possible.  Don’t keep your debt lingering around.  Go ahead and kick them out.





Women Outlive Men

How prepared will you be when you retire? Now is the time to take hold your finances.

The Social Security Administration Reported That Women Outlive Men

Women Outlive Men

This Got Me Thinking…

Does Jessica Know What Our Retirement Accounts Consist Of?

I figured women outlived men.    Men are risk-takers and most men would agree that this risk is fun!   I recall my brief thought of being a bull-rider at the age of 23.  That idea lasted for a split second and am grateful it did.

There are the exceptions. My grandfather is approaching 96 years old while my grandmother passed away almost 35 years ago.

According to the Social Security Administration, Jessica is expected to outlive me.  This motivated me to bring her up to speed on our net worth, asset allocation model, taxes, IRA to Roth IRA conversions, etc.

I typically handle the finances but  needed to immerse Jess in investment terminology and options.  Finances are typically seen as a men’s world and the reality is they need to be managed by both spouses.

As a Result I Developed a Cheat Sheet To Guide Her

I have put together a guide that I have used to grow our retirement account.  This includes an overview of different types of retirement accounts, our portfolio and asset allocation model.    

The idea of making more money in retirement than in our working years is a reality and not a dream.   It’s exciting to know that we have changed our family legacy!  My daughters will not have to go into debt to pursue their college education or worry about retirement.

And more importantly, Jess will have been educated on retirement.

I Challenge You To Make Retirement a Reality

I share this cheat sheet not to boast but to encourage and motivate you to start or evaluate your retirement strategy.  Trust me, retirement will sneak up on you and you’ll need to be ready.

Growing up in low-income home I believed retirement and investments were for a select people. That is no longer my mentality and hope you believe the same.

It gets easier the more you investing you do.  You develop your financial muscles 💪🏽.  Investing has been part of our strategy for over 14 years.  There is no reason that you should not be able to retire.

Retirement is for all.  It does not discriminate or is it exclusive to one social economic group.

How A Masters Degree in Business Did Not Provide the Financial Guidance I Needed

While I am proud of having received an MBA degree I was ashamed that my finances were in rubbles.  The degree taught me how to do great research as many papers were written.  And the personal finances class I might have missed at some time.  I had to learn to manage my personal finances on my own and  at a high expense. 

Financial Disruptor

This tagline has brought some healthy conversations.  I believe that anyone can be a financial disruptor.  A disruptor is defined as a person that prevents something, especially a system from continuing as usual.  

That usual was our finances. It wasn’t until we started budgeting, eliminating debt, and investing that we disrupted our finances.  Action was taken and  Financials were Disrupted.  I say we because it is a team effort.  Jess, myself, and the kiddos.

Ready to See What We Are Doing For Retirement

The available guide details our portfolio and asset allocation model.  The model is not unique to our financial situation and can be mimicked.  Most asset models can be duplicated as majority of investors place their funds in large capital, small capital, international funds, and stocks. These terms are defined in the reading.

Feeling motivated?  You can sign up to receive the FREE guide.


I am not a licensed professional. I do play one at the Gallegos’ residence and have done well.  Those are the words of my financial advisor.  You can expect the material you read to be educational, informative, and entertaining.