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The Cash Flow Index Debt Payoff Strategy Explained 

Next Level Life
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The Cash Flow Index Debt Payoff Strategy Explained:
Debt is one of the most polarizing subjects in the realm of personal finance. Perhaps because people have achieved financial success with such wildly differing debt situations. There is no denying that the financial ceiling is higher for those who utilize a ton of leverage, but the reliability of a highly-leveraged approach is lower due to the risks involved with having a larger cash outflow every month. As a result, many strategies over the years dedicated to paying off one's loans have been created. Today we're going to be talking about one of them known as the cash flow index strategy and comparing it to the other strategies such as the debt snowball and debt avalanche in a variety of financial situations.
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24 сен 2023

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Комментарии : 10   
@tz55lj
@tz55lj 9 месяцев назад
My initial thoughts are that if the calculations for your own personal scenario can be made, find the best approach. If complexity creates paralysis by analysis for you, find the simplest approach for you and be diligent in discipline to pay off debt - whichever way works for you.
@NextLevelLife
@NextLevelLife 9 месяцев назад
Sounds like a great plan to me!
@3moirai
@3moirai 9 месяцев назад
Informative as always. I've never heard of this method and still struggling to figure out what cases this strategy might be better overall over then snowball/avalanche. I need to see more examples where CFI shines.
@jordanhoman0212
@jordanhoman0212 9 месяцев назад
From my understanding, this helps choose which debt to pay off first to get some, but not all, cashflow back. It is optimizing for the biggest monthly payment to get rid of in the shortest time. Compare that to the debt snowball, which optimizes for the monthly payment to get rid of in the shortest time, regardless of size. IMO it's too complex for what it's worth. If you can follow this complex of a plan and stick to it, the avalanche is easier and better in the long run. If you need the dopamine hits, use the snowball. Either way, it probably won't change your debt free date by much unless you quit the plan or miscalculate something.
@michaelswami
@michaelswami 9 месяцев назад
Good to hear from you. You’re one of my long time follows.
@NextLevelLife
@NextLevelLife 9 месяцев назад
I appreciate that!
@crharvin
@crharvin 4 месяца назад
Such great information! You've done a PHENOMENAL job illustrating these. I just stumbled across your Debt Snowball vs Debt Avalanche video then this one. Well done!
@hopefullyhigh
@hopefullyhigh 9 месяцев назад
My system; avoid it as much as possible, pay it off as soon as you can.
@darrenwainwright6819
@darrenwainwright6819 9 месяцев назад
Debt or mortgage first?
@NextLevelLife
@NextLevelLife 9 месяцев назад
A good system!
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