I am going simple this week. Many of you know that my wife and I are fans of Dave Ramsey, founder of The Lampo Group in Brentwood, TN who is now on Fox Business. His method for getting debt free and remaining debt free is one of many that you could follow but we like the Christian background with it. That doesn’t mean he is perfect and that God has given him some kind of special insight that others don’t have, we just like the supporting evidence that goes along with his method such as Proverbs 22:7 “The rich rule over the poor and the borrower is slave to the lender.”
He has Baby Steps that are fairly easy to follow (to an extent, depending on your lifestyle that you are currently living).
1. $1,000 to start an emergency fund
2. Pay off all debt using the debt snowball (minus the house)
3. 3 to 6 months of expenses in savings
4. Invest 15% of household income into Roth IRA’s and pretax retirement
5. Setup college fund for your kids (if it applies)
6. Pay off home early
7. Build wealth and give
Heather and I are currently on Baby Step 3…again. It seems that everytime we achieve this goal something comes up to where we start over, but at least we are avoiding debt by having the money available and we fully expect to have this goal achieved by Christmas of this year (God willing). We are about to go through another financial test in August when I do not receive a pay check until September 5th due to a change in jobs. The move is for the better and I will reveal more about it after this week so expect a blog post next week dealing with the new line of work. In the meantime, check out the links that I provided and feel free to ask questions about his program. I don’t make any money if you sign up for Financial Peace University but I can tell you that it is well worth your investment to take the class. Even if you do not follow the steps verbatium the information that you receive will give you the knowledge to make wise and informed decisions about your finances (from insurance to rent/owning a home to the different types of investments).