Hack 93 · Next-Level Wins & Lifetime Habits
Prepay Small Debts Instantly
This hack directs windfalls at your smallest outstanding debt, clearing it completely rather than spreading the money thinly. Eliminating a debt entirely frees its monthly payment and produces a visible win that keeps momentum going. The freed-up payment then accelerates the next debt.
How to do it
- List your debts from smallest balance to largest.
- Put any windfall against the smallest until it is fully cleared.
- Redirect the freed monthly payment to the next one.
What it typically saves
Frees monthly cash flow and builds the momentum to clear larger debts.
Questions people ask
Should I not pay the highest interest rate first?
Mathematically yes, that saves more. Smallest-first wins more often in practice because the visible progress keeps people going.
What counts as a windfall?
Any money outside your normal budget: refunds, bonuses, side income, or gifts. Money you were not relying on is the easiest to redirect.
What if the interest gap is large?
Then pay the expensive debt first. When one rate is dramatically higher, the maths outweighs the motivation benefit.
Go deeper
This is the short version. The full walkthrough lives in The Money Mindset, book 5 of The Everyday Money Upgrade — where this hack comes with choosing between smallest-balance and highest-rate order, the payment cascade that accelerates payoff, and where windfalls go once debts are clear.
Free: the 5 Quick Wins guide
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