Today's tip of the day is better than a tip. If you haven't heard of Dave Ramsey, it's time to come out of the cave! I've known about him for at least 10-years, but I didn't get serious until about 4 years ago. Since then, I paid off all my debt, bought a house and paid cash for a lovely car a few weeks ago. We are saving about 75% of our income now. The idea is simple, but the execution is hard.
For the next week, I'm going to break down what Mr. Ramsey calls the Baby Steps. But before I even get into the 7 Baby Steps, I think it's important to start out by talking about just how key it is that you sit down, talk with your significant other and actually make the decision that you want to change. A lot of people talk about how to change, but never touch on the fact that if you or your spouse isn't ready to change, it isn't going to happen. You have to want to change.
Getting to the point where you want to change might mean that you've hit bottom or it might just mean that you're sick of not saving enough towards retirement. It's a different point for everyone. But when you
get there you'll know.
Once you've made a decision to change, you need to be able to begin the change immediately and make a decision as a family that you aren't going to incur any more consumer debt. Credit cards and home equity lines of credit are off limits now. No more high interest auto loans! If you want a new TV or new kitchen countertops, you're going to have to save for them. No more store credit cards to buy clothing at ridiculous interest rates!
Cut up your credit cards, and draw a line in the sand. No more debt!
When you're starting on the road to financial freedom you need to brace yourself and realize that it isn't always going to be easy getting out of debt and building wealth. There will be bumps along the road, and there will be times that you'll want to quit. Your family and friends may even think you're a bit odd for all the "strange things" you're doing – like not using credit cards, not incurring debts to buy nice cars or not upgrading your house. You'll seem abnormal, but that's ok. Normal is being broke. Being debt free and financially sound IS strange. So you want to be strange.
3 comments:
Couldn't agree more and I'm glad you're posting the Dave Ramsey stuff on here. It's helped me so much over the last year and a half. For the first time in a long time, I'm saving quite a bit and it feels great.
i am so loving ur contributions ashley!
thank you Salina!! I'm having fun with them and I hope someone walks away with more knowledge!
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