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So with the economy being what it is, I thought now would be an appropriate time to share a little something with you all that was and still is a huge help in our household.A few years ago, right after Zachary was born, Rick and I sat down and realized that in the 7 years we had been married we had done NOTHING to pay down any of the debt that we had since the start of our marriage.
It seriously was at the same level of over $60,000. Yes, that's over 60 thousand. Not including our mortgage.
We had paid off credit cards or a small loan, but had quickly managed to replace it with a car loan, home equity loan or something else. Even though those that we owed money to had changed, our overall balance had not.
At that point we decided it was time to get downright serious and get a handle on our money and so we both sat down and read Total Money Makeover by Dave Ramsey. We started hammering away at our debt, got 100% serious on getting rid of it - and did. It meant actually coming up with a budget (and sticking to it), Rick's working a lot of overtime and a second job, and making some major changes in our spending habits.
Dave Ramsey gives some wonderful principles to follow and walks you through the process step by step. If you've never listened to his show or been to his website hop on over and check it out. He also has a site devoted to Total Money Makeover.
Dave Ramsey teaches 7 principles called "Baby Steps"to help get your finances back in shape:
- $1,000 to start an emergency fund.
- Pay off all debt using the debt snowball.
- 3 to 6 months expenses in savings.
- Invest 15% of household income into Roth IRA's and pre-tax retirement.
- College funding for children.
- Pay off home early.
- Build wealth and give.
I would love to win a copy of this book!
ReplyDeleteI am sooo glad you did this! I was just saying last night that I wanted to bug you guys again about doing this group again....hmmm? If you don't, I'm gonna find someone ELSE to do it! This is soooo needed! BTW, Congratulations!
ReplyDeletePick me! Pick me!!
ReplyDeletejermtrace@verizon.net
We have been trying to reduce our debt as well. It is time to get serious! I would love to win this book.
ReplyDeleteEnter me! Enter me! You have piqued my curiosity. I am going to check out his site now. Sounds awesome!
ReplyDeleteEnter me! Enter me! You have piqued my curiosity. I am going to check out his site now. Sounds awesome!
ReplyDeleteOkay...so sometime I'll have to tell you about our debt thats just been the white elephant in the room but in the meantime...enter me for the book! I had actually gone a couple weeks ago to Barnes & Noble to look at financial books but was overwhelmed with the selection therefore walked out empty handed. So even if I don't when a copy I am totally buying on myself.
ReplyDeleteThey have one of his books at the library if anyone is interested. It was really good and I would love to have this book in my home! It's something I need to read and reread.
ReplyDeleteSo does Kristy get TWO chances since she posted twice? Smart, Kristy...really smart. *wink*
ReplyDeleteSign me up, girl!
Until now through Miss Kristy I have been a reader only of your blog (no I am not psycho ask Kristy) -- but now you have interested me enough to leave a comment! Would love to receive a free copy of the book -- our household could use a makeover considering now we currently have 2 kiddos and no budget plan with enough debt to need one. Thanks for the website address too - planning on heading on over to check it out.
ReplyDeleteHaha...funny Christin. :) I just saw my comment posted twice, don't know how that happened! I guess I just really want to win!!!! :):):)
ReplyDeleteI need a copy of this book. Really. Please consider this my entry and thank you.
ReplyDeleteI love that book. Please don't enter me, because I own it already. My husband and I are leading a Financial Peace University class at our church starting next week. Even though we don't have any debt other than our house, it really has helped us to reevaluate our attitudes toward money and our priorities. I can't wait to pay off our mortgage!!
ReplyDeleteCount me in...thanks!
ReplyDelete13 years ago when we first got married we read his book (not this one) about budgeting and we stuck to it for some time. We are ready to buckle down again - cause we've strayed. So, count me in!
ReplyDeleteHe looks like Greg Laurie. Don't ya think? :)
ReplyDeleteI would LOVE to be out of debt. I hate feeling like I am a slave to creditors! Thanks for a great giveaway opportunity!! ;-)
ReplyDeleteOur SS just talked about his book, and possibly doing it as a group some time. Since two of us have entered so far it gives one of us a better chance of actually taking the book into SS.
ReplyDelete