Dave Ramsey: Total Money Makeover
Monday, April 21st, 2008I can’t sit here and take credit for my (relatively) recent financial makeover. In 2006, I received a tidbit of recommendation from the most unlikely of sources to check out the Dave Ramsey program… MY SISTER.
After listening to the (then) most financially irresponsible person I knew at the time sell me on the Total Money Makeover (TMM) audio book, I’ve become a cult Dave Ramsey follower. I’ve always been good with money by mainly listening to my mother and grandfather talk about how to budget and constantly instilling that credit cards are the devil. I’ve held true to those values but without a plan.
Despite the teachings of my parent’s and grandfather, I was never taught how to become debt free until I ran into TMM. From start to finish, I found myself being captivated and inspired by following 7 small common sense steps to get my financial future on the right path.
To be quite honest the journey is half the reward. It’s amazing how things become SO possible once you create a plan and set goals. For instance, I once laughed at my cousins idea that he should be able to pay off his house within five years. I was brought up believing my fathers teaching that we’re always going to have bills. I’m here to tell you inf act… IT’S ENTIRELY POSSIBLE!
I’ve since apologized to my cousin for making a mockery of his suggestion. I’m nowhere closet o paying off our mortgage but I’m not going to sit here and say that it’s impossible. If I really dedicated myself to doing that, it could easily be accomplished within 5 years or so.
Here’s the basics of Dave’s Financially Fit plan (7 baby steps):
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$1,000 to start an Emergency Fund | |
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Pay off all debt using the Debt Snowball | |
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3 to 6 months of expenses in savings | |
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Invest 15% of household income into Roth IRAs and pre-tax retirement | |
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College funding for children | |
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Pay off home early | |
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Build wealth and give! Invest in mutual funds and real estate |
Because of baby step #3, despite my time of currently being laid off, I’ve been completely stress free because of Dave’s plan to achieve financial responsibility.
Having said everything but, “I want to have the man’s child”, I highly suggest you read it also so we can really get an understanding as to what we’re trying to accomplish and how we’re going to go about doing it.
