Dh and I have been attending the Dave Ramsey course at our church. Tonight was the 12th week and there's one week left. It's been an interesting journey and we've learned from it. I've been able to get back on track with our finances and that feels good because in the past I have put our bills and stuff on the back burner because credit cards payments got to be so much and it was just a mess. This course really made me take a hard look at where our money was messed up and how lazy I had been, but now I'm happy to say with some hard work we are back on track and then some.
I believe the reason that this course has helped hundreds and hundreds of people is two-fold. First, Dave Ramsey is a very funny, down to earth kind of guy. And second, he breaks down getting out of debt into baby steps. And I really think that's the key. Where most all the other financial gurus have people start paying down debt with their biggest credit card, Dave does the opposite. He says to pay down the smallest credit card and then apply that payment to the next and so forth. It's a snowballing effect. And these are the babysteps he teaches:
Babystep 1: Build a one thousand dollar emergency fund.
Babystep 2: Debt snowball
Babystep 3: Build up a 3 to 8 month living expense
Babystep 4: Invest 15% of income into IRA Roth or Retirement IRA
Babystep 5: College funding for children
Babystep 6: Pay off house early
Babystep 7: Build weath and give more!
So I am very happy to report that we have babysteps #1, #3, #6 completed. And I'm working on #2-debt snowball. I have paid off two credit cards already and will have the third paid off in another month. I can't tell you how good it feels not worrying about credit card debt. I want to save the money we are paying to the credit card companies for travel. Or old age.
I hope that if you are having financial difficulties you will look into the Dave Ramsey course. People are getting out of debt left and right with it.