Thursday, March 5, 2009
Sunday, March 1, 2009
You should watch this before you continue reading, (it wouldn't let you embed it on the page, but it takes you straight to the youtube video). This is the first few minutes of the event we went to:
After the first ten minutes, Dave had our attention. We were captivated all 6 hours of the seminar. He was funny, and had tons of data to back up his theories, although mostly what he explained was just good old common sense.
He has 7 steps for his program, that you are supposed to follow in order and you can't start the next until you finish the one before it:
1- Create an emergency fund with $1,000 (that way you won't go back to using credit cards when emergencies come up)
2- Debt snowball: you pay off ALL of your debt, except your mortgage, starting with smallest debt. When the smallest debt is paid off, you apply the money that you saved from paying it off to the next smallest debt...this keeps rolling over until you have a huge amount to pay off bigger debts like cars
3- Create a 3-6 month salary emergency expense fund
Steps 4, 5, & 6 you work on simultaneously
4- Invest 15% into retirement
5- Start a college fund for your children
6- Pay off mortgage early
7- Build wealth & give
After his seminar we signed up for his 13-week Financial Peace University. The average family to go through the course pays off $5,300 in debt and saves $2,700 in the first 91 days. We aren't ones to typically talk about our finances with others, but we have been going to the classes for 4 weeks now and have already paid off $2,500 of our debt and saved our $1,000 emergency fund, saving us $700 on monthly payments! We are so excited to be on the road to paying off EVERYTHING, including our house, we are almost obsessive!
Here is a link to his website, if you want more info: http://www.daveramsey.com/