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Book Review: Social Nation

Business, Reviews

I recently had an opportunity to read Social Nation: How to harness the power of Social Media to attract customers, motivate employees & grow your business by Barry Libert.  Heckuva title.

Libert is the the CEO at Mzinga, which is a company that connects other companies–and their customers–using social media to collaborate and communicate.  Social media is, quite simply, using the internet to drive interactive communication.  This includes Twitter, Facebook, and forums.  Sometimes, it’s just discussion, sometimes, it’s sharing user-generated content.

Social Nation “will show you, as an employee, customer or partner, how to use new social technologies, make yourself heard, and produce better products and services.”   It bills itself as a “complete toolbox” for social media.   Does it match the hype? Let’s see.

The book is broken into three sections.

Part 1: The Future of Business is Social

Libert asserts that the future of business is social.   That is obviously true, to a degree. A solid viral marketing campaign can drive more eyeball to a product than a full-page spread in the New York Time or a 30-second spot during Super Bowl halftime.  However, there are a lot–possibly a majority–of business-to-business companies that will gain no value from a social media campaign.   Would a regional supplier with an exclusive distributorship for a top-name line of faucets benefit from being on Twitter?  No.  On the other hand, 17% of our time online is spent on social applications and the fastest growing demographic on Facebook is 35 years old or older.  There is certainly some value to be gained by have a social media presence in some markets.

This section(all of chapter 3!) also contains a link to a test to determine your social media skills.   I haven’t taken the test, mainly because I don’t feel like registering for another site.  This struck me as nothing more than lead generation, which is a shame.  It could be a useful tool.

Part 2: Seven Principles for Building Your Social Nation

This section has seven chapters, containing 7 case studies that detail the 7 principle of social media, as defined by Libert and Mzinga.

The principles include:

  • Let the culture lead the way, as demonstrated by Zappos.com.
  • Involve your fans.  The big takeaway from chapter 8 is that, when you create a community, your job is to facilitate involvement, not to control it.  If you try to run it with an iron fist, it will choke and die.
  • Reward others and you will be rewarded. Apple lets developers keep 70% of the money they make in the app store.  That encourages developers to develop, making everyone more money.   Give.  Karma will take care of the rest.
  • There are 4 other principles, but some are just common sense, and I don’t want to give away the contents of the book.

Part 3: Start Today and Create Your Own Social Nation

aka

Chapter 11: How to Get Started and 10 Pitfalls to Avoid

Section 3 has just one chapter, but it’s a good one.    It explains the difference between followers and fans, the value of each and how to bond with each.   The difference?  Fans are actively involved.   Followers are far more passive.

This section/chapter also goes into some things to avoid, like abandoning a social media strategy too early, failing to market your business, underestimating the power(positive and negative) of a social network.

Is it worth getting the book?

Social Nation bills itself as a complete social media toolbox, but it falls a bit short.   The book tackles social media from a purely strategic point of view, ignoring the tactical concerns.   It’s clearly geared toward helping a company plan its social media strategy from a 10,000 foot perch.   For the people in the trenches, or anyone with a grasp of strategy that’s looking for the details on running a social media campaign, it’s not enough.  That said, if you are trying to plan a social media strategy, or you have no idea where to start, this is a great book for you.   It holds a lot of value, but stops some distance before “complete”.  Definitely worth a read if you are involved is social media planning.

Giveaway

I’m giving away Social Nation.   If you’d like to have a chance to get it, just leave a comment, telling me how you like to see companies use social media.  Fair warning, this is the book I read, so it’s “used”.   I take care of books, so you can’t tell that it’s used.

Publishers, Publicists, and Authors

If you have a book you’d like me to review, please contact me.

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Clearing Up Social Debt in 3 Steps

Finance

Debt can be thought of as a disease–probably social.  Most of the time, it was acquired through poor decision making, possibly while competing with your friends, occasionally after having a few too many, often as an ego boost.  Unfortunately, you can’t make it go away with a simple shot of penicillin.   It takes work, commitment and dedication.  Here are three steps to treating this particular affliction.

1.  Burn it, bash it, torch it, toss it, disinfect. Get rid of the things that enable you to accumulate debt.   If you keep using debt as debt, you will never have it all paid off.   That’s like only taking 3 days of a 10 day antibiotic.   Do you really want that itchy rash bloodsucking debt rearing its ugly head when you’ve got an important destination for your money?   Take steps to protect yourself. Wrap that debt up and keep it away.

2.  Quit buying stuff. Chances are, you have enough stuff.  Do you really need that Tusken Raider bobble-head or the brushed titanium spork?  They may make you feel better in the short term, but after breakfast, what have you gained?  A fleeting memory, a bit of cleanup, and an odd ache that you can’t quite explain to your friends.   Only buy the stuff you need, and make it things you will keep forever.  If you do need to indulge, hold off for 30 days to see if it’s really worthwhile.   If it’s really worth having, you can scratch that itch in a month with far fewer regrets.

3.  Spend less. This is the obvious one.  The simple one.  The one that makes breaking a heroin addiction look like a cake-walk(My apologies to recovering heroin addicts.  If you’re to the point that personal finance is important to you, you’ve come a long way.  Congratulations!).  Cut your bills, increase your income.  Do whatever it takes to lower your bottom line and raise your top line. Call your utilities.  If they are going to take your money, make them work for it.   If they can’t buy you drinks or lower your payments, get them out of your life.   There’s almost always an alternative.   Don’t be afraid to banish your toxic payments. Eliminate your debt payments.  This page has a useful guide to debt and how to clear it off.

Update:  This post has been included in the Festival of Frugality.

Make Extra Money, Part 6: Setting Up a Site

Business, Finance

In this installment of the Make Extra Money series, I’m going to show you how to set up a WordPress site.   I’m going to show you exactly what settings, plugins, and themes I use.   I’m not going to get into writing posts today.  That will be next time.

I use WordPress because it makes it easy to develop good-looking sites quickly.   You don’t have to know html or any programming.   I will be walking through the exact process using Hostgator, but most hosting plans use CPanel, so the instructions will be close.  If not, just follow WordPress’s 5 minute installation guide.

Installing WordPress

Assuming you can follow along with me, log in to your hosting account and find the section of your control panel labeled “Software/Service”.  Click “Fantastico De Luxe”.

Fantastico

On the Fantastico screen, click WordPress, then “New Installation”.

Install WordPress

On the next screen, select your domain name, then enter all of the details: admin username, password, site name, and site description.  If you’ll remember, I bought the domain  http://www.masterweddingplanning.net.   I chose the site name of “Master Wedding Planning” and a description of “Everything You Need to Know to Plan Your Wedding”.

Click “install”, then “finish installation”.   The final screen will contain a link to the admin page, in this case, masterweddingplanning.net/wp-admin.  Go there and log in.

Configuring WordPress

After you log in, if there is a message at the top of the screen telling you to update, do so.   Keeping your site updated is the best way to avoid getting hacked.  Click “Please update now” then “Update automatically”.  Don’t worry about backing up, yet.  We haven’t done anything worth saving.

Next, click “Settings” on the left.  Under General Settings, put the www in the WordPress and site URLs.  Click save, then log back in.

Click Posts, then Categories.  Under “Add New Category”, create one called “Misc” and click save.

Click Appearance.  This brings you to the themes page.   Click “Install Themes” and search for one you like.   I normally use Headway, but before I bought that, I used SimpleX almost exclusively.   Your goal is to have a simple theme that’s easy to maintain and easy to read.  Bells and whistles are a distraction.

Install a theme

Click “Install”, “Install now”, and “Activate”.  You now have a very basic WordPress site.

Plugins

A plugin is an independent piece of software to make independent bits of WordPress magic happen.   To install the perfect set of plugins, click Plugins on the left.    Delete “Hello Dolly”, then click “Add new”.

In the search box, enter “plugin central” and click “Search plugins”.    Plugin Central should be the first plugin in the list, so click “install”, then “ok”, then “activate plugin”.  Congratulations, you’ve just installed your first plugin.

Now, on the left, you’ll see “Plugin Central” under Plugins.  Click it.  In the Easy Plugin Installation box, copy and paste the following:

 All in One SEO Pack
 Contact Form 7
 WordPress Database Backup
 SEO SearchTerms Tagging 2
 WP Super Cache
 Conditional CAPTCHA for WordPress
 date exclusion seo
 WP Policies
 Pretty Link Lite
 google xml sitemaps
 Jetpack by WordPress.com


Click “install”.


On the left, click “Installed Plugins”.   On the next screen, click the box next to “Plugins”, then select “Activate” from the dropdown and click apply.


Activate plugins


Still under Plugins, click “Akismet Configuration”.  Enter your  API key and hit “update options”.  You probably don’t have one, so click “get your key”.


Tools


The only tool I worry about is the backup.   It’s super-easy to set up.   Click “Tools”, then “Backup”.  Backup


Scroll down to “Schedule Backups”, select weekly, make sure it’s set to a good email address and click “Schedule Backup”.   I only save weekly because we won’t be adding daily content.  Weekly is safe enough, without filling up your email inbox.


Settings


There are a lot of settings we’re going to set.   This is going to make the site more usable and help the search engines find your site.  We’re going to go right down the list.   If you see a section that I don’t mention, it’s because the defaults are good enough.


Writing


Set the Default Post Category to “Misc”.


Visit this page and copy the entire list into “Update Service” box.   This will make the site ping a few dozen services every time you publish a post.   It’s a fast way to get each post indexed by Google.


Click “Save Changes”.


Discussion


Uncheck everything under “Email me whenever…” and hit save.   This lets people submit comments, without actually posting the comments or emailing me when they do so.  Every once in a while, I go manually approve the comments, but I don’t make it a priority.


Permalinks


Select “Custom structure” and enter this: /%postname%/


Click save.


All in One SEO


Set the status to “Enabled”, then fill out the site title and description.  Keep the description to about 160 characters.  This is what builds the blurb that shows up by the link when you site shows up in Google’s results.


Check the boxes for “Use categories for META keywords” and “Use noindex for tag archives”.


Click “Update Options”.


Date Exlusion SEO


Check the boxes to remove each of the dates and set the alt text to “purpose” or something.   This will suppress the date so your posts won’t look obsolete.


Hide Dates


SEO Search Terms 2


This plugin reinforces the searches that bring people to your site.   It’s kind of neat.  Skip the registration, accept the defaults and hit save.


WP Policies


Scroll to the bottom and click import.  We’ll come back to this.


WP Super Cache


Select “Caching On” and hit save.


JetPack


Across the top of the screen should be a giant banner telling you to connect to WordPress.com and set up Jetpack.  You’ll need an account on WordPress.com, so go there and set one up.   After authorizing the site, you’ll be brought back to the Jetpack configuration screen.   Click “Configure” under “WordPress.com Stats”.  Take the defaults and hit save.


Contact


On the contact configuration page, copy the code in the top section.  You’ll need this in a moment.


Contact form code


Pages


Now, we going to create a couple of static pages.   On the left, click “Pages”, then “Add new”.


Name the first page “Contact” and put the contact form code in the body of the page.  Hit publish.


Menus


Under Appearance, click “Menu”.   Enter a menu name and hit save.


Then, under “Pages”, click the box next to “Contact”, “Disclaimer”, and any other policies you’d like to display.  Hit save.


Widgets


Also under Appearance, click “Widgets”.   This is where you’ll select what will display in the sidebar.   All you have to do is drag the boxes you want from the middle of the page to the widget bar on the right.   I recommend Text, Search, Recent Posts, Popular Search Terms and Tag Cloud.  In the text box, just put some placeholder text in it, like “Product will go here”.   We’ll address this next time.


Posts


We’re not going to worry about getting posts in place, yet.    That will be the next installment.  However, the steps in the next installment could take 2 weeks to implement, and we want Google to start paying attention now.  To make that happen, we need to get a little bit of content in place.   This won’t be permanent content.  It’s only there so Google has something to see when it comes crawling.


To get this temporary, yet legal content, I use eZineArticles.  Just go search for something in your niche that doesn’t look too spammy.


Then, click “Posts”, then delete the “Hello World” post.  Click “Add new”.   Copy the eZine article, being sure to include the author box at the bottom, and hit publish.


To see your changes, you may have to go to Settings, then WP Cache and delete the cache so your site will refresh.


Congratulations!  You now have a niche blog with content.   It’s not ready to make you any money, yet, but it is ready for Google to start paying attention.    In the next installment, I’ll show you how I get real unique content and set it up so Google keeps coming back to show me the love.


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Making Extra Money Part 3: Product Selection


Finance
When you’re setting up a niche site, you need to monetize it.  You need to have a way to make money, or it’s a waste of time.


There are two main ways to do that:  AdSense or product promotion.   To set up an AdSense site, you write a bunch of articles, post them on a website with some Google ads, and wait for the money to roll in.


I don’t do that.


I don’t own a single AdSense site and have never set one up.  This article is not about setting up an Adsense site.


My niches site are all product-promotion sites.  I pick a product–generally an e-book or video course–and set up a site dedicated to it.


Naturally, picking a good product is an important part of the equation.


The most important part of product selection is that the product has an affiliate program. Without that, there’s no money to be made.     There are a lot of places to find affiliate programs.     Here are a few:


    

  • Amazon.   If you don’t live in one of the states that Amazon has dropped in retaliation for passing laws that attempt to circumvent the Supreme Court’s ruling on collecting sales tax, you can sign up as an associate and collect a commission on every referral you send that turns into a purchase.   That means you have a lot of product to choose from.   Unfortunately, your commission is small, so you need to promote fairly expensive products to get a decent return.   On the other hand, people trust Amazon, so that’s one less hurdle to making a sale.
    • 

  • Commission Junction.   These are the people managing affiliate programs for a large number of credit cards and banks.  If you’ve opened an account with INGDirect through one of my links, I got a commission for the referral. (Thank you!)   They have a lot of other products, too.
    • 

  • e-Junkie.  This one is a popular distribution system for bloggers.   It’s likely that, if you’ve bought an ebook from a blogger, e-Junkie handled the fulfillment process.   A lot of the products available there have an affiliate program, but that is up to the owner of the product.
    • 

  • ClickBank.  My favorite.   This is one of the largest affiliate networks specializing in electronic products, whether that’s membership sites, ebooks, or video courses.   Commissions are good, often 50-75%.   They also offer a 60 day guarantee of every product sold through their site, which helps soothe the wary customer.  This is the site I’ll be using for this series.
    • 



The first thing you need to do is sign up for whichever program you intend to use.


If you’re not going with Clickbank, feel free to skip ahead to the section on keyword research.


Once you are signed up and logged in, click on the “Marketplace” link at the top of the screen.


Clickbank


From here, it’s just a matter of finding a good product to sell.   Here are the niches we’re going to be looking for:


    

  • Back pain
    • 

  • Bankruptcy
    • 

  • Conflict resolution at work
    • 

  • Detox diets
    • 

  • Fat kids
    • 

  • Foreclosure avoidance
    • 

  • Job hunting
    • 

  • Weddings
    • 

  • Writing sales copy
    • 



I’m going to look for one or two good products in each niche.  When that’s done we’ll narrow it down by consumer demand.


For now, go to advanced search.


CBSearch


Enter your keyword, pick the category and set the advanced search stats.     Gravity is the number of affiliates who have made sales in the last month.  I don’t like super-high numbers, but I also want to make sure that the item is sellable.  Over 10 and under 50 or so seems to be a good balance.


The average sale just ensures that I’ll make a decent amount of money when someone buys the product.   I usually aim for $25 or more in commissions per sale.  Also, further down, check the affiliate tools box.    That means the seller will have some resources for you to use.


This combination will give us 36 products to check out for back pain, unfortunately, none of the results are for back pain products.    After unchecking the affiliate tools and setting the gravity to greater than 1,  I’ve got 211 results.    Sorting by keyword relevance, I see three products, two of which look like something I’d be interested in promoting.   One has a 45% commission, the other is 55%.  The X-Pain Method has an initial commission of $34 and claims a 5% refund rate.   Back Pain, Sciatica, and Bulging Disc Relief pays $16, which will make it a potentially easier sale.  I’ll add both to the list for further research.


I’m not going to detail the search for the rest of the niches.  That would be repetitive.  You can see my selections here:



Now we’re going to go through a few steps for each of these products.


The Sales Page


We need to make sure the sales page doesn’t suck.    If the site doesn’t work, is hard to read or navigate, has a hard-to-find order button, or just doesn’t look professional, it’s getting cut.


    

  • Raw Foods is eliminated.  The sales video is horrible and the order link is at the bottom of several screens worth of nothing.  It’s a crap site.
    • 

  • The 7 day foreclosure-avoidance product is out.  Site’s down today.  I want reliability.
    • 

  • Management Training By The Book is out.  I don’t like typos on the sales page, especially in the page title.
    • 



The Email List


If it has an email subscription form, we’ll need to subscribe, then double-check to make sure our affiliate information isn’t getting dropped in the emails.   If it is, the seller is effectively stealing commissions.  In the interest of time and laziness, I’m going to eliminate anyone pushing for an email subscription.  It’s harder–and time-consuming–to monitor that.  On of my niche site had a seller completely drop their product.  Instead, they pushed for email subscriptions so they could promote other products as an affiliate.  Absolutely unethical.


    

  • Wedding speeches is eliminated for  throwing a mandatory email entry into the order process.  There’s no guarantee they are up to anything shady, but I’m taking the simple route.
    • 



Checkout and Credit


Finally, we’re going to visit the checkout page.  You need to do this from every links in the newsletter and the links on the sales page, just to make sure you’ll get your money.


The way to tell who’s being credited is to look at the bottom of the order page, under the payment information.   It should say [affiliate = xxx] where xxxis your ClickBank ID.   Anything else, and the product gets cut from the list.


When you are checking these, don’t click on every possible link at once.  That confuses the cookies. Do one at a time.  I tried to do it in one batch for this post and lost half of the cookies.  If it weren’t for the fact that I already own one of the products and bought it through my own link and got credited, I would have been talking undeserved trash about thieving companies.


Other Factors


Sometimes, when you’re examining a product, it just doesn’t feel right.  When that happens, drop it.  There are millions of other products you can promote.   In this case, I’m dropping the anger management program because, in my experience, angry people don’t think they are the problem.  Here’s a life tip:  If everyone else is a jerk, the problem probably isn’t everyone else.


    

  • Another important factor is the sales page itself.  If it doesn’t make you want to buy the product, why would anyone else?
    • 

  • Amazing Cover Letters is eliminated because it’s too easy to overlook the buy link.  If I have to hunt for it, it’s losing customers.
    • 

  • Amazing Wedding Planning is getting eliminated because I don’t like the sales page.  The buy link is easy to overlook, and it doesn’t compel me to buy.
    • 



Now we’re down to 10 products in 6 niches.    At this point, we’re comfortable with the sales pages and we know that they are crediting commissions.   As it stands right now, all of the products are worth promoting.



We’ll make the final determination after doing some heavy keyword research in the next installment.   That’s where we’ll find out how hard it is to compete.


Any questions?


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4 Ways We Keep Wasting Money


Finance






DENVER - NOVEMBER 22:  A traveler undergoes an...


Image by Getty Images via @daylife








MSN Money has an article up on common ways money is wasted.    Here is my spin.


We(as a species) tend to do a great job of wasting money.   Between inertia and the emotional pain of cutting off something we have gotten used to–whether it be Netflix or a 3rd arm–it’s hard to kill wasted costs.  As Robert Heinlein said, “Man is not a rational animal, he is a rationalizing animal.”


MSN listed 4 ways to make your money go bye-bye:


1.  Credit cards


According to the article, in the US, the average rate of interest is 15% for a total nation-wide debt of $850 billion-with-a-B.  That’s insane.   I lucked out and quit using my cards before the CARD act forced all the issuers to send their rates to the moon.   I’ve opted out of every agreement change since then, while I pay off the remaining balances.   15%! If you buy something for $1000 and pay it off in a year, that’s $1150.   What could you do with an extra $150?   It’s time to get out the torches and pitchforks and drop by Mr. Debt’s house.


2.  Overdraft fees


I set up an overdraft protection account years ago, because it was a heckuva lot cheaper than bouncing checks.   It came with a 25% interest rate and a $2 fee per use.   A couple of months ago, they boosted the fee to $10 per use.   Jerkface, you’re already cashing in on my interest, do you have to touch me like that at the beginning of the date, too?   Thankfully, we haven’t used our overdraft protection since we went on our debt-killing crusade in April of 2009.   Oh, Mr. Debt!  You’re going to have a really bad day when I get to your house.   There will be a smoothie à la Otis when I get there.  Side note:  If you’ve got a dark sense of humor, rent Otis.    Not only will you love it, you’ll get the smoothie joke.


3. Unused memberships, gift cards and rebates


Gym memberships are the big example here.   People buy a membership because they set some awesome New Year’s resolution, use it for 2 months, then spend 6 months telling themselves they’ll start using it again soon before they finally cancel.   At $30 per month, that’s $180 that could have been spent sending me presents.   If you must get a gym membership, wait until spring.  That’s when people tell themselves they don’t need a membership because it’s so nice out, they can just exercise outside.   When people tell themselves that, the gyms cut membership costs to lure people in to start their own 6 months of denial.


Take a look at your other recurring costs, too.  Do you use the cable package you have, or could you be just as happy with the next one down?  Do you need the donkeys-and-kneesocks-around-the-world channel?   You’ve gotten your 10 CDs for a penny, can you tell Columbia House where to go with their $20 per CD commitment?


4.  Airline fees


This one is easy.   Forget the 3 hour lines, fees for showing up, Pervo-Scan™, and minimum-wage molestation agents masquerading as cops.   Drive whenever possible.    If it’s not possible, show up in a kilt, regimental-style(assuming you are a guy!).   Don’t check a bag, just ship if overnight to your hotel.   Most of the time, that’s cheaper than $50 per bag, anyway.  Avoid the fees as much as possible.


What other ways have you wasted money?


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Money Problems – Day 7: Paying Off Debt


Finance


Scottsturgis unicorn
Image via Wikipedia




Today, I am continuing the  series, Money Problems: 30 Days to Perfect Finances.   The series will consist of 30 things you can do in one setting to perfect your finances.  It’s not a system to magically make your debt disappear.  Instead, it is a path to understanding where you are, where you want to be, and–most importantly–how to bridge the gap.


I’m not running the series in 30 consecutive days.  That’s not my schedule.  Also, I think that talking about the same thing for 30 days straight will bore both of us.   Instead, it will run roughly once a week.  To make sure you don’t miss a post, please take a moment to subscribe, either by email or rss.


On this, Day 7, we’re going to talk about paying off debt.


Until you pay off your debts, you are living with an anchor around your neck, keeping you from doing the things you love.  Take a look at the amount you are paying to your debt-holders each month.   How could you better use that money, now?  A vacation, private school for your kids, a reliable car?


If you’ve got a ton of debt, the real cost is in missed opportunities.   For example, with my son’s vision therapy being poorly covered by our insurance plan, we are planning a much smaller vacation this summer–a “staycation”–instead of a trip to the Black Hills.  If we didn’t have a debt payment to worry about, we’d have a much larger savings and would have been able to absorb the cost without canceling other plans.  The way it is, our poor planning and reliance on debt over the last 10 years have cost us the opportunity to go somewhere new.


The only way to regain the ability to take advantage of future opportunities is to get out of debt, which tends to be an intimidating thought.   When we started on our journey out of debt, we were buried 6 figures deep, with a credit card balance that matched our mortgage.    It looked like an impossible obstacle, but we’ve been making it happen.   The secret is to make a plan and stick with it.   Pick some kind of plan, and follow it until you are done.  Don’t give up and don’t get discouraged.


What kind of plan should you pick?  That’s a personal choice.  What motivates you? Do you want to see quick progress or do you like seeing the effects of efficient, long-term planning?   These are the most common options:


Debt Snowball


Popularized by Dave Ramsey, this is the plan with the greatest emotional effect.   It’s bad math, but that doesn’t matter, if the people using it are motivated to keep at it long enough to get out of debt.


To prepare your debt snowball, take all of your debts–no matter how small–and arrange them in order of balance.   Ignore the interest rate.  You’re going to pay the minimum payment on each of your debts, except for the smallest balance.  That one will get every spare cent you can throw at it.   When the smallest debt is paid off, that payment and every spare cent you were throwing at it(your “snowball”) will go to the next smallest debt.   As the smallest debts are paid off, your snowball will grow and each subsequent debt will be paid off faster that you will initially think possible.    You will build up a momentum that will shrink your debts quickly.


This is the plan I am using.


Debt Avalanche


A debt avalanche is the most efficient repayment plan.  It is the plan that will, in the long-term, involve paying the least amount of interest.  It’s a good thing.   The downside is that it may not come with the “easy wins” that you get with the debt snowball.   It is the best math; you’ll get out of debt fastest using this plan, but it’s not the most emotionally motivating.


To set this one up, you’ll take all of your bills–again–and line them up, but this time, you’ll do it strictly by interest rate.  You’re going to make every minimum payment, then you’ll focus on paying the bill with the highest interest rate, first, with every available penny.


DOLP


This is the plan promoted by David Bach.  It stands for Done On Last Payment.   With this plan, you’ll pay the minimum payment on each debt, except for bill that is scheduled to be paid off first.   You calculate this by dividing the balance of each debt by the minimum payment.   This gives you an estimate of the number of months it will take to pay off each debt.


This system is less efficient than the debt avalanche–by strict math–but is better than the snowball.  It give you “quick wins” faster than the snowball, but will cost a bit more than the avalanche.   It’s a compromise between the two, blending the emotional satisfaction of the snowball with the better math of the avalanche.


Snowflaking


For each of these plans, you can give them a little steroid injection by snowflaking.  Snowflaking is the art of making some extra cash, and throwing it straight at your debt.   If you hold a yard sale, use the proceeds to make an extra debt payment.   Sell some movies at the pawn shop?  Make an extra car payment.  Every little payment you make means fewer dollars wasted on interest.


Paying interest means you are paying for everything you buy…again.  Do whatever it takes to make debt go away, and you will find yourself able to take advantage of more opportunities and spend more time doing the things you want to do.  Life will be less stressful and rainbows will follow you through your day.  Unicorns will guard your home and leprechauns will chase away evil-doers.   The sun will always shine and stoplights will never show red.   Getting out of debt is powerful stuff.


Your task today is to pick a debt plan, and get on it.   Whichever plan works best for you is the right one.    Organize your bills, pick one to focus on, and go to it.


Assuming you are in debt, how are you paying it off?


 


 


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