Author: Dave Ramsey
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Great book. Really practical financial advice. Basically he has several goals that you achieve one at a time through a tremendous amount of prayer, savings, hard work and eliminating extra spending.
There are seven baby steps (taken from one of my least favorite movies ever: What About Bob) that help set you completely debt free:
1. Save $1000 to start an Emergency Fund
2. Pay off all Debt using the Debt Snowball
Start with the smallest debts that you have. Emotionally and mentally, this sets you on the right path toward realizing your goals of paying off each debt.
3. 3-6 months in savings
4. Invest 15% of all household income into Roth IRAs and pre-tax retirement
5. College funding for your children
6. Pay off home early
7. Build wealth and give
For more information, go to Dave Ramsey's website found here.
I love the idea of this process. I completely believe that it works, that it is also a ton of work (but then again, everything worth doing is) and that it is something our family should work towards. We have step one already accomplished in four months. We are in the midst of #2 - paying off our debt which is shrinking many times over this year. $11,000 paid off; $6,000 to go. We can do it! Praise God!
The part that really gets me is being able to provide $$ for college for my kids as well as being able to invest into our future. At the moment, we have minimal of each and it seems like a dream to be able to set more aside.
Tracking my spending has been a huge success (despite last month's giant spending spree). I'm at least aware and more on top of it now.
Looking forward to making a plan with Jeremy and seeing what we can accomplish by the end of the year!