Dave Ramsey says…
Lots of people have asked me, “What’s it like to do the Dave Ramsey plan?” Our family is in the the third year since graduating from Financial Peace University. In those three years we have made it step by step out of the hole. It’s been tough and we have sacrificed a lot to get where we are just to gain some peace of mind. Just to refresh your memory or take you through the plan here it is in a nut shell.
|$1,000 to start an Emergency Fund|
|Pay off all debt using the Debt Snowball|
|3 to 6 months of expenses in savings|
|Invest 15% of household income into Roth IRAs and pre-tax retirement|
|College funding for children|
|Pay off home early|
|Build wealth and give!
Invest in mutual funds and real estate
We are on step 6 and this is probably the hardest one for us. The only step that we have not done is “sell so much stuff the kids thing they’re next!” We have been able to make it this far without doing that but now, it’s time! We have started looking around the house to see we what we can sell. I have a few semi-precious stones that I don’t really need, along with a few rings and necklaces.
Yes, I rather pay off our house than own gold. It’s just not more important than our sanity. My husband has a few collections in a storage that he could part with too. We may begin to take some drastic measures. My husbands new job with less pay has really got us in a major bind. We could get rid of the cleaning service, the lawn service, Netflix, cable, YMCA, all the extra kid activities and maybe more. It’s better for us to take one year and completely focus on getting rid of the house payment. Then we could be free in one year rather than stretch it out for another 5 years.
It’s so close that we can both see it. We need to be like Nike and Just Do It! I’ll keep you posted. We have paid off a six figure debt with interest. Soon we will be free and we will never return to that nasty place again! I can almost taste the peace of mind. For me, I’m going to try and find whatever free lance work that I can. I would be more than happy to wait tables at this point. I just want it to end. What about you? How is your financial future looking? Are you a Dave Ramsey fan?