Becoming Money Smart

I dont know about you guys but my husband and I have a little bit of debt. This past month we had to replace all 4 of the tires on both of our cars. Because we do not have any savings it created  $1000 of extra debit in addition to the other debt we already had accumulated. I am totally over being in debt. Hopefully you dont have a lot of debt, but in case you are in the same boat as I am, I have found some great advice from Dave Ramsey.

Dave Ramsey is a real guy who has found out how to be money smart first hand. In 1988 he formed The Lampo Group to counsel folks hurting from the results of financial stress. He said he's paid the "stupid tax" (mistakes with dollar signs on the end) so hopefully some of we won't have to. The Lampo Group that he created has founded itself on the mantra that they "provide biblically based, common-sense education and empowerment which gives HOPE to everyone from the financially secure to the financially distressed." So even if you are financially secure he also has a lot to help you as well. 

Here are a few of the Baby Steps he has suggested:

1. Baby Step 1 $1,000 to start an Emergency Fund: 
An emergency fund is for those unexpected events in life that you can’t plan for: the loss of a job, an unexpected pregnancy, a faulty car transmission, and the list goes on and on. It’s not a matter of if these events will happen; it’s simply a matter of when they will happen.
2. Baby Step 2 Pay off all debt using the Debt Snowball: 
List your debts, excluding the house, in order. The smallest balance should be your number one priority. Don’t worry about interest rates unless two debts have similar payoffs. If that’s the case, then list the higher interest rate debt first.

     3.  Baby Step 3 3 to 6 months of expenses in savings
        Once you complete the first two baby steps, you will have built serious momentum. But don’t start 
        throwing all your “extra” money into investments quite yet. It’s time to build your full emergency fund.

The group offers classes where you can learn some of the tricks to the trade to gain that financial peace. Click here to find a class near you. Or to see the other 4 steps to financial peace click here.  To find out more about Dave Ramsey click here

I am definitely going to sign up for a class. I cant wait to get started on step 1,though that might take me a while since we are down to one income, but we'll get there hopefully :)