On Drowning in debt? Manage what you owe before you need saving
Posted on November 18 at 1:19 p.m. ( Suggest removal )
I am taking Financial Peace University by Dave Ramsey through my church and would highly recommend it to anyone regardless of income. Check out website at financialpeaceuniversity.com
The main focus is to go through 7 baby steps, and some will take time to accomplish but they keep you focused.
1. Save for an emergency fund of $1000 ($500 if lower income) This protects you for an emergency so you don't have to go into more debt.
2. Pay off all debt except the house using the debt snowball method
3. Save for larger emergency fund of 3-6 months of living expenses
4. Start saving 15% of income for retirement
5. Save for college for kids
6. Pay off mortgage
7. Live debt free and build wealth and give generously
It works and has helped many come back from the brink of bankruptcy. Ramsey has been helping people for the last 20 years.
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On Drowning in debt? Manage what you owe before you need saving
Posted on November 18 at 4:43 p.m. ( Suggest removal )
Interestingly, Dave Ramsey's website does not take credit cards for payment. He absolutely does not condone use of credit cards. You can use a debit card or check. We did pay $90 for all the program materials through our church and did so with cash we had saved.
It takes sacrifice to get out of debt. It is extremely difficult for most of us. My wife and I have two cars that are 10 and 11 years old. One has over 200,000 miles on it. We would love to get a replacement vehicle but getting out of debt is more important.
We had to accept we had to stop living like everyone else where debt and credit cards are the norm. When you decide to take the plunge and to be "weird" by saving, living on a budget, and not using credit things will turn around. Having faith that you are strong enough to do it also helps.