One of our latest, personal accomplishments was completing a 13 week financial class called "Financial Peace University" from Dave Ramsey. When I was pregnant, several people we knew were taking it and saying how transforming it was for them. We were a little skeptical at the time, but mostly in a state of financial denial. At this time, Adam and I were spending money very carelessly; eating out whenever we wanted, going on vacation, shopping every weekend, etc. We knew our income was going to drop tremendously with having me out of work, but we still weren't moved to make any serious financial changes. Though we weren't creating serious debt for ourselves, we certainly weren't making any progress.
When Adam came back from Alaska, we decided to take a closer look at our finances. It was really starting to get emotional for me considering how much I want to be home with Atticus without financial stress. We signed up for the January class. Our first night of class we were asked what we hoped to get out of the course. Finding a way to be home with Atticus was my hope. Throughout the 13 weeks, I can honestly say that we found a way!
Dave Ramsey's course teaches you to follow 7 baby steps that will bring absolute financial peace.
1. $1,000 in an emergency fund
2. Pay off all debt with the debt snowball (and stop using debt!)
3. Build 3-6 months of expenses in savings
4. Invest 15% of income for retirement
5. Fund your children's college education
6. Pay off your home early
7 Build wealth and give
He says that in order to accomplish these baby steps you must live like no one else, so you can live like no one else!
Though we are only on baby step 2, we have already felt peace in our lives and see our finances clearer than ever before. We have our small emergency fund built, paid off are cars & lines of credit, and are making large lump sum debt payments. The cherry on top is that I now know how to make a monthly budget, follow it, and track how it's going! I have peace knowing that after 1-2 years of teaching, we will be fully out of debt (including student loans, minus our first mortgage) and I can be home with Atticus and maybe even another little one by then. :)
His program is life changing if you ever have the opportunity to take Financial Peace, read his book, or even attend a seminar.
7 comments:
I'm so proud of you Marie! That all sounds awesome...I need to start being better about this myself.
Hey Marie! Its Alicia. I saw you post your blog address on facebook and thought I would check it out! It is fun to see you and your little family! I hope you don't mind if I check it out every once in a while.
Also my husband and I have just started reading that book! It is really motivating. We have our step one down...we are now working on paying off our cars, so we will see what happens!:)
Thanks for the comments and looking at our blog! :) Yeah, we've really enjoyed it and gotten motivated. It is really cool how you can put the steps into motion when you have the right tools to use.
Hey there! We here you girl when it comes to money. We got a few of those down, so I guess we should start to work on #3. That will be hard!!! I assume owning a house doesn't count as debt.
oops. "hear"
Nice Robyn! Step 2 also includes student loan debt, yuck. Your home mortgage is an a whole different baby step. :)
Hey Marie! I found your blog from Alicia's list. It was great to see you at the wedding.. You have an adorable little family! =)
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