https://www.youtube.com/watch?v=aSWKvjLqZ6Y

Most people struggle to get out from debt like they’re drowning in the ocean.  Like drowning, they waste energy, time, and money floundering and flailing instead of taking calculated, focused, strategically-timed strokes that would free them most efficiently. The Cash Flow Index removes this struggle.Before we dive into the Cash Flow Index, let's talk about why this happens.

Often, people focus on solving the wrong problem.  When it comes to paying off debt, most people are riveted on the interest they are paying. They let it steal their attention like a car accident in the other lane causes the rubber-necking drivers to lose focus on staying in their own lane.

When it comes to paying off debt, interest is only the second priority.  It plays second fiddle.

It’s cash flow that is the first priority.

A focus on interest rates is like a focus on all the deep scary ocean water, full of sea creatures below you.  It’s the wrong place to put your attention if you want to swim.  Don’t work to escape the water, work to reach the air.

Table of contentsEarlier in the Series on DebtThe Safest, Smartest Way to Pay off DebtWhere Paying off Debt Fits into Your Cash Flow SystemWhy Cash Flow Is Top PriorityCash Flow Strategy for Paying off DebtStep 1: Calculate the Cash Flow IndexWhat Does the Cash Flow Index Mean?Ranking Your Cash Flow Index ScoresThe Rate of Return on Paying Off DebtStep 2: Use the Cash Flow Index to Create a StrategyShould You Pay off Loans?Consumptive vs. Productive LoansYour Strategy Depends on Your StewardshipThe Best Strategy to Pay off Debt#1) Continue making minimum payments.#2) Build up savings.#3) Keep an emergency fund.#4) Find your lowest index loan.#5) Pay off the loan all at once.#6) Redirect new cash flow to savings.Turbocharge Your Debt Pay-Off with Life InsuranceRefinancing and Loan ConsolidationOther ConsiderationsThe Bottom LineStart Increasing Your Cash Flow TodayThe Whole Series on DebtBuild Your Time and Money Freedom

Earlier in the Series on Debt

Previously, in Why Debt Free Doesn’t Make You Financially Free, we demonstrated clearly what debt is and what it isn’t, and that rushing frantically to pay off loans may be one of the riskiest financial moves you can make.  We revealed that just because you have loans doesn’t mean you’re even in debt, and that the end goal of being rid of debt might not get you any closer to financial freedom.

Then, in The Right Way to Spend Money: Spender, Saver, or Steward? we discovered the limitations of both the Spender and the Saver.  We also uncovered the superpowers of the Steward to create wealth through control, access to capital, and earning uninterrupted compound interest.

In Opportunity Cost: The Invisible Cost of Financing, we busted the myth that paying cash always saves you money. We discussed that there’s always a cost of capital, and the person who comes out ahead is the one who maintains control and access to their money.

The Safest, Smartest Way to Pay off Debt

Now, if you are in a position with multiple loans, and you’ve decided that the most productive use of your capital at this time is to pay off loans, it’s time to get a game plan.

We’ll help you calculate the best strategy to pay off debt, while decreasing risk, increasing your cash flow, maintaining as much financial control as possible, and avoiding a crisis of liquidity.

We’ll call it Cash Flow Index Snowball Method.  It’s a comprehensive cash flow strategy for paying off debt.

We’ll answer:

Should I pay off my debt?If so, how do I pay off debt the quickest, most efficient, smartest way possible?Which debt should I pay off first?How do I pay off debt to best increase my cash flow?How do I avoid rubber-band debt?What steps do I take to avoid a crisis of liquidity?

This conversation will move you from haphazard overpayments to a strategic, focused plan that increases your financial control.