children · lifestyle · uplift

Lets talk about $

I have been obsessed with Dave Ramsey lately and I wanted to tell you about a few key points I have learned this past month after reading his book, Total Money Makeover and listening to his podcast daily. My husband and I are working through his baby steps and are SOO anxious to get to STEP 7 which is pay off your mortgage and be generous to others. Listening to his podcast has been SO insightful to me. I love hearing about other peoples situations and questions. Most of the time, he is giving the same advise, so I want to list a few of the most valuable things I have learned this past month.

  1. Live on LESS than you make.
  2. GET out of debt and STAY out of debt. Pay cash for everything {but your house}. If you don’t have enough money to get that car, purse or whatever it is you want/need then don’t get it. Do not put it on a credit card {cut up your credit cards!} Buy the $1,000 car and save up for the car that you really want to get and pay with cash!
  3. Live on a plan. Make a budget for your household and stick to it. Dave recommends the envelope system where you put cash into envelopes for each section of the budget {groceries, clothes, activities, entertainment, eating out etc}
  4. Be generous with your money. Once you have gone through the baby steps, be generous with your money and not stingy.
  5. Be INTENTIONAL.
  6. Who you hang out with is who you become like. If you are hanging out with people who put everything on credit cards and are in debt vs if you hang out with people who pay cash and save their money…
  7. Gazelle like focus. If you are trying to get out of debt {baby step 2} then you have gazelle like focus. Everything you do is focused on that. You eat rice and beans. You have no life because you are so focused on getting out of debt that you have one thing on your mind.
  8. Side Hustle-jobs on the side that will help you make more money to get through the baby steps faster. If you are trying to get out of debt, deliver pizzas at night to make some side money. Whatever it takes!
  9. Every dollar has a home. Don’t just spend your money without having it have a place it came from. If I buy anything, it has to have come from a specific budget.
  10. Ask yourself, ‘What decision will put me in the BEST place 10 years from now?’
  11. Plan ahead for emergencies. We don’t know when they will come, but they will come! Have money set aside for those times.
  12. Be financial partners with your spouse. You both know the financial ins and outs of your household and you make financial decisions together.

Here are Dave’s Baby Steps”

baby steps

  1. Always have $1,000 in your savings account…always!
  2. Get rid of the debt & STAY out!
  3. Have 3-6 months of pay set aside in a savings account in case something happened where you needed to live off of it while finding another job.
  4. Invest for retirement {401k…}
  5. Have money for your kids to go to college. By helping them out with this, they will be able to get the education they will need to help their future family.
  6. Pay off your mortgage!!! When Dave opens up his show he says, “DEBT IS DUMB, CASH IS KING, AND THE PAID OFF MORTGAGE HAS TAKEN THE PLACE OF THE BMW AS THE STATUS SYMBOL!”
  7. Be outrageously generous!

WOW! I LOVE THESE BABY STEPS! It is a road map to being independently wealthy. My husband and I have also viewed this as a great teaching moment for our kids. Every Sunday night at the dinner table, we have the kids each say a baby step, then we have a print out of our weekly expenses and what budget they came out of. We feel like it is so important to talk to our kids about our financial life since it involves them as well. Our hopes for doing this is that it teaches them to never go into debt, how to be responsible with money and how to be informed on how money works.

I am sad to say that it took me too many years to get fully on board with being a partner with the finances with my husband. For so many years I would say, “he has a masters in accounting. He is good at handling the money.” Yes that is true, however I have learned that it is a partnership and that we need to be into it 50/50. You live and learn. Now that I am fully on board, I am more aware of our household finances and I now want my kids to know how money works. Once they leave our house, I want them to understand how to work hard, how to save money, how to handle a budget. I am actually grateful that my husband turned me on Dave Ramsey because it actually fired me up to be more of a team player in our families finances and to teach my kids as well!

 

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