Related to my last post “Be Your Own Bank,” is Dave Ramsey’s concept of “ debt snowballing.” The idea is to pay off a small debt balance, then roll that money that would be going to that debt to the next largest debt. In our case, we went after the highest interest debt we had and continued from there…
This way of living has had tremendous benefits. From Amy Dacyczyn’s The Complete Tightwad Gazette, I learned to apply savings to areas that would create greater savings. This is deliberate living that requires you to be financially self-aware at all times.
I guess this last concept is more like a “savings snowball.” In the past, I started by having a yardsale that gave me the money to spend on garden tools and seeds. The money saved by growing our own food (we included the cost of gas and wear and tear on our vehicles to to to the grocery store) was then invested in canning equipment and dehydrators.
Each year at this time, we make a list of what we are going to put our savings into. Some of what we will do this year are invest in more chicks (for eggs and meat). While feed has increased, we have started freeranging our hens and realized some savings there. Even though we pay for feed, we get a lot of garden vegetables from the compost made from the deep litter we use in the coop (for another post–we compost all paper products, junk mail, etc…) But I digress….
I’d really like to take some snowball savings and invest in some miniature milk goats that I could use for (at least) cheese and maybe milk and yogurt. So far, I haven’t convinced anyone else that this is a good idea. I’ll let you know….
Every year, we take some of our savings and invest in more edible landscaping. By retirement, we should have enough fruit and nut trees and bushes to support ourselves without needing to use a grocery store. In my mind, the ability to feed yourself is insurance. It’s one thing to be poor, it’s entirely another to be poor and hungry. No one need be hungry, even in the city (but more on that in later post…)
In the meantime, I’d love to hear some of the reader’s lists for what to invest their savings snowball in to help them save MORE money….