Goestromanicallo was in trouble. He was having a hard time with his budget. He invested with money he didn’t have. He was deep in debt already and should have utilized it on paying it off. Now, he had a dilemma of being more in debt.
He looked at his paperweight. On one side it was green and it had a dollar sign on it. It signified that he was out of debt and was actively investing. Then he flipped it over and that side was red with a dollar sign. That signified that he was in debt. He knew he was in debt and it concerned him.
Goestromanicallo took a look at his spending and it was huge. He needed to re-allocate some of his funds to pay for his debt. So instead of buying things he didn’t need, he focused on debt repayment. This time, he would use the quadruple budget, specifically, in paying his bills, he would get rid of it first before investing. He would allocate 25% of his salary towards paying off debt until he was completely out of debt. Once out of debt, that 25% that was going towards paying off debt could go towards investing.
He did the math on it:
25% of his salary ($4000) is $1000
He had $6000 of debt
$1000 x 6 months = $6000 towards debt
It would take him 6 months to get out of debt
Once out of debt he allocates the $1000/month towards investing
$1000/month towards investments for the rest of his life
In this way, Goestromanicallo could take his paperweight and flip it over from the “in debt” side to the “out of debt” side or investment side. He was relieved to have a good budget that would help him to finally be completely out of debt.