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Snowball Plan

One debt repayment plan that’s popular if you have read many personal finance materials is Dave Ramsey’s “Snowball Plan.” Here’s how it works:

List your debts in order from lowest balance to highest balance. Don’t take into account the interest rate. We’re just focusing on the balance of the debt.

Allocate as much of your monthly budget as you can to paying off the debt with the lowest balance.

Once the debt with lowest balance is paid off, you add the money that had been going to that debt to what you’ve been paying against the next lowest debt. Each time you pay off a debt, the amount you can apply to remaining debts is a little bigger. Thus, the name “Debt Snowball Plan.”

The benefit of the debt snowball plan is psychological. By having success paying off small debts first, you’ll receive instant positive feedback that can encourage you to continue paying down your debt.

The drawback to the snowball method is that you’ll end up paying more in interest than you would if you went after the debt with the highest interest rate first. However, if the idea of paying off a RM 5000 credit card bill seems too daunting, go after the low hanging fruit by paying off the RM 400 bill first. It will hopefully get you started down the path of reducing your debt.

Tags: Dave Ramsey, debt repayment plan, Snowball Plan

The Women You “Admire”

They say the women you admire reveal more to her than you know.You’re effectively judged – by the second date – based on how you rave about these women.

Women You Love:Pamela Anderson
What Women Think Of You:Overgrown Teenager

Women You Love:Scarlett Johansson
What Women Think Of You:Sex Addict

Women You Love:Julia Roberts
What Women Think Of You:Closet Gay

Women You Love:Dakota Fanning
What Women Think Of You:A Seriously Disturbed Man

Women You Love:Megan Foxx
What Women Think Of You:Overgrown Geek

Women You Love:Angelina Jolie
What Women Think Of You:Skank Lover

Women You Love:Your Mother
What Women Think Of You:A Sad Man

p/s:Not my writing.Hey this is just for fun.OK So what if the woman is RCW ?

How To Handle A New Ride

These tips will keep your car in tip top condition,make it more enjoyable and save you some moolah.

1.Don’t Race The Engine

The pistons and crankshafts are still a little bit tight of the assembly line.Do not redline the engine for the next 1,000 km or so.

2.Don’t sit on one speed for long

Do not drive with a constant engine RPM for more than a few minutes,this is the hard part and also the most important part since it is responsible for bedding in the piston rings.

3.Don’t drive at full throttle or high revs for long

The engine is made out of many moving parts,some of which needs to be seasoned into its tight spaces and movement.Full throttling may cause irreparable damage to the engine.

4.Avoid unnecessary hard stops

Engine braking is almot as tough on the engine as hard revving.

5.Don’t tow heavy loads

A heavy car needs more revs to pull itself along.Try to keep your new car light.

6.Follow the service schedule

Your new car will shed the few odd shards of metal and extra grease from the assembly.Follow the service schedule to replace the necessary oils and keep your car running healthily.

7.Avoid hard revving when cold

Starting up from cold is when most engine wear occurs.So give your car a few minutes to warm up by using low engine revs as you drive.This allow the lubrication systems to move oil right through the engine.When the temperature gauge is in the normal operating zone ,your car is ready for what it does best.

8.Driving smoothly

The stop start nature of city driving is hard on cars.By adopting a smooth steady driving style you will dramatically reduce wear on your engine, clutch, transmission,brakes and tires.You will also use less fuel which saves money.

9.Avoid gutters,kerbs and bumps

Try to avoid hitting kerbs when parking and potholes at speed.The impact can put the front wheels out of allignment,causing uneven and premature tire wear.It can also cause damage to wheel rims and tires.

Enjoy your new ride.