Two weeks ago, Tracie and I began a new adventure together..... one we should have taken a very long time ago. We signed up for, and began taking the Dave Ramsey's Financial Peace University course, in an effort try and get our financial mess straightened out and put on the right track once and for all. Simply put, we didn't handle our finances well at all, together or individually, and we have spent the past six years digging ourselves a deeper and deeper and deeper hole. I am not happy or proud to say this, but am ready to admit that we are unable to "fix" our situation without some form of help.
And so, we began Dave Ramsey's class two Sunday's ago. Prior to the class, I actually took the time to read through his book, Complete Guide to Money. After reading the book, without having attended a single class yet, I already felt better, realizing that there is a way out! I came to realize that this guy was in our situation at one time himself, and actually much worse off than we are now. And today, he is debt free and worth a whole lot of money! If he figured it out and made it work, then I was confident that we can do the same.... and so our adventure began.
The key to making money work, and for finding financial peace, according to Dave Ramsey, is to follow the seven baby steps that he has designed for us to follow. Baby step #1 is to put $1000 into an emergency fund as soon as possible!!! In addition to getting this emergency fund in place, we are also to create a zero-based budget. I am very happy to say that, as of today, we have our $1000 emergency fund in place, money in the bank, in it's very own account!!! We also have come up with our first draft of a zero-based budget, which was actually more difficult than getting the emergency fund in place!!! I know that our budget will get changed a fair amount over the next several months, until we have it fully dialed in......but, we have one, and we are starting to live by it as of today as well.
So, Baby Step #1 is complete!!! Now we start working on the really tough one next. Baby Step #2 is for us to pay off all debt, using the debt snowball technique. This one is going to take us a lot more time and effort, as we have, quite sadly, accumulated well over $100k of debt over the past six years!!! The good news is that we are now ready to start working to get rid of it, using Dave's approach, and hard work..... it may take us two years to get it done, but it took us six years to dig the hole!!!
It isn't going to be easy, and things are going to change pretty drastically for us for quite some time now....but, I really like how Dave Ramsey puts it into perspective in the big picture.......
If we will live like no one else, later we we be able to LIVE like no one else!!!
I am actually really looking forward to this next weeks class, as we will be learning more about cash flow planning, and then more about dumping debt...... both things we really need to get a grasp on!!!
Time to head to work......on this Friday the 13th..... yikes!!!