Awhile ago, I read 'The Total Money Makeover' by Dave Ramsey. I really liked a lot of things he has to say about getting out of debt and building savings while still having a good quality of life.
He has some basic baby steps to follow:1. start a $1000 emergency fund
2. pay off all debts
3. build up enough savings to cover 3-6 months of expenses (a full emergency fund)
4. fully fund your retirement
5. start college funds for children
6. pay off your home early
7. build wealth and give
One key element of his plan is to pay cash for everything, and to stop using credit cards completely. Since you have to have cash for this to work, we can't get started yet, which is why we don't jump right in as soon as I finished the book.
Once Mr. S gets a job though, we're jumping in with both feet and moving forward!
Posts
Does he say to do this stuff in that order? Just wondering. With Jared's student loans, we would be 30 years on step 2. Instead we're building our down-payment on a home money. Does he discuss that in his book?
ReplyDelete