Wipe our Debt

This man is a genious…

 Dave Ramsey, developer of the Financial Peace University, offers online advice for creating the peace of mind that comes from security in our finances.

 His Seven Baby Steps to getting out of debt (and these apply to everyone, not just people who are under water…) —

  1. Create a $1000 Emergency Fund.
  2. Pay off all debt (except your mortgage — that comes later) using the “Debt Snowball” method.
  3. Increase your Emergency Fund to equal 3 to 6 months of your household income.
  4. Invest 15% of your income into Roth IRAs and pre-tax retirement accounts.
  5. Start saving for college – he recommends some places to save.
  6. Pay off your house early.
  7. Give to charity.

We are personally following this  plan, and have paid off many things ahead of schedule, without being “cash-poor.” Paying off debt early saves thousands of dollars of interest.  Our goal is to be debt-free.

Dave Ramsey‘s online tools are easy to follow, applicable to any income level and level of debt, and free.

Real Debt Help – Get out of debt with Dave Ramsey’s Total Money Makeover Plan – daveramsey.com.Before you tune this out as worldly and not Bible-based, let me share another page from the same website, “The Bible and Money,” where Mr. Ramsey now gives God’s perspective on debt and giving (remember, Step 7 on the “Baby Steps to Building Wealth” was giving, because it’s not material wealth we are storing up).

Financial Peace University is a Bible-based curriculum that teaches us how to handle our money according to Biblical principles. I highly recommend that you bookmark this website and use it for family goal-setting. We did, and we are not disappointed.

Peace to all!

Cover of "The Total Money Makeover: A Pro...
Cover via Amazon

 

Advertisements