Can you imagine what it would be like to just use cash? Keith and I have been fortunate in that we have never had a lot of debt. I would say we were the average American family-1 car loan, maybe a small student loan, and maybe a little on the credit card. About a year ago I discovered Dave Ramsey. You can tune into him on AM radio and he also comes on the Fox Business Network at 7pmCST. It gives me such joy to look back a year later and see that the only payment we make is a mortgage payment and hopefully not for long! If you're going into this Christmas season with a big weight on your shoulders I highly suggest finding out where you can take his "Financial Peace University" class and following these baby steps:
1. $1,000 to start an Emergency Fund
2. Pay off all debt using the Debt Snowball
3. 3 to 6 months of expenses in savings
4. Invest 15% of household income into Roth IRAs and pre-tax retirement
5. College funding for children
6. Pay off home early
7. Build wealth and give!
Invest in mutual funds and real estate
"Debt is dumb, cash is king, and the paid-off home mortgage has replaced the BMW as the new status symbol of choice." Dave Ramsey
Friday, December 19, 2008
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1 comments:
Where have you been?!? We took the class at HCBCPF three years ago. Slackers.
It has really helped us out and we just finished going through it with our current small group. We plan on being out of debt (other than our house) by the end of '09. 45K in 4 years, not as fast as we should have done it, but we are happy to get rid of it.
"If debt is normal, I want to be weird."
Welcome to being weird.
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