This guest post is from a friend of mine back home that introduced me to the Dave Ramsey concept.
Something about living on a small income and realizing you were spending $200 more a month than bringing in? How you dealt with it etc. ?
We went all out for a year & paid off all of our “consumer”
debt and built up a baby emergency fund ($1000). For the last couple
months we have been spending quite a bit of money on our house. Fixing
up things and changing it up to better meet our needs since the new plan
is to stay put for the next 5 years. We have a couple more things to do
to it this year and then we’re going to go back to knocking out our
last remaining debt (besides our mortgage)–student loans. The plan
is to be debt free except our house and have about 3 months of expenses
saved by October 1 when we go to Dallas and see Dave Ramsey Live.
)?just reading in the comments on money saving mom about people
fussing about paying off debts smallest to largest instead of highest
interest rate first. They have some valid points, and I realize Dave
Ramsey isn’t for everyone. But I think that people who are worried
about paying debts off by interest rate probably aren’t the same people
who are really behind on their bills either, you know? We did it both
ways. We paid off our debts smallest to largest, which also happened to
be in order of interest rate, so I guess we got the best of both
worlds–the psychological benefit of a bunch of little successes, and
the financial benefit of paying off debts with the largest interest
rates first.
financial advice with a grain of salt. Personal finances are just
that–personal. They’re specific to each person and situation. And
Dave Ramsey has to speak to an audience of millions of people. He
tailors his advice to suit the most people. Should everyone cut up
their credit cards? Probably not. But we did and we are better for it.
Turns out that we are just not that responsible. I also don’t carry a
debit card if I am just going to be in town. Again–I’m just not that
responsible. I think part of being an adult is knowing your limits and
shortcomings and organizing your life so that those things aren’t as big
of an issue.
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