we're on a mission

I picked up the book "The Total Money Makeover" by Dave Ramsey about a month ago, but did not start reading it until just last night. If any of you have heard of Dave Ramsey, you will know he does not mess around. I read over half the book and can't wait to read the rest tonight.

His plan is about as simple as it gets, but requires a ton of determination and sacrifice. He believes, that by following his plan to a T, even people in our situation can be debt free in only a few years and be well on our way to building our financial future. Just hearing that gives us hope that we thought was gone and I can't tell you how excited we are to take his challenge head on.

Here is the outline to his baby steps.

1. $1,000 to start an Emergency Fund
2. Pay off all debt using the debt snowball, starting with smallest debt first
3. 3-6 months of expenses in savings
4. Invest 15% of household income into Roth IRA's and pre-tax retirement
5. College funding for your children
6. Pay off home early
7. Build wealth and give

In order to accomplish these steps, there are a number of things he suggests you do.

First - Get rid of as many expenses and payments as you can.

Second - Sell everything you can do without.

Third - Cut the credit cards. Don't buy anything unless you have cash.

Fourth - Make a realistic budget and stick to it.

Fifth - Bring in extra income.

Sixth - Make a list of true needs vs. wants. We really don't need much to live.

In his book, he is very clear with details on how to do everything listed above. He also drills home the idea that those who are more motivated will accomplish much more much faster. He uses the term "gazel crazy". I won't spoil the story behind the term. You'll have to read the book. ;)

Live like no one else so you can live like no one else. - Dave Ramsey
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