Well, tonight was my final class of Dave Ramsey's FPU. It was AMAZING.
Baby Step 7: Build wealth and GIVE.
You can do everything Dave teaches you and you will prosper, but if you don't learn to GIVE you will never have Financial Peace.
The Great Misunderstanding, the paradox, is the mistaken belief that the way to have more is to hold on more tightly.
Giving moves you to become less selfish, and less selfish people have more of a tendency to prosper in relationships and in wealth.
Financial Peace is when the Great Misunderstanding is finally understood. When you learn to give as much as you can.
__________
This class moved me to tears. I believe I have been raised to truly believe that giving is always the right thing, the best thing. If you don't have the money, give in your talents and time. If you do have the money, obviously, share in your treasure.
I hope you all have enjoyed my summaries of my classes. If any of you are interested in obtaining more information, leave a comment or shoot me an email and I'll be happy to connect you with the amazing information Dave has provided.
And remember...to reach the Financial Peace you dream of follow these 7 baby steps:
1. Save $1000 in an Emergency Fund
2. Debt Snowball (get rid of that debt--except for your house)
3. Three to six months expenses in savings
4. Invest 15% of your household income into Roth IRAs and pre-tax retirement plans
5. College funding
6. Pay off your home early
7. Build wealth and give!
Showing posts with label Financial Peace University. Show all posts
Showing posts with label Financial Peace University. Show all posts
Tuesday, April 7, 2009
Tuesday, March 31, 2009
FPU-Real Estate and Mortgages
Nope...I haven't forgotten about FPU, I have just been busy or battling Tim for computer time!!
This week's lesson was in Real Estate and Mortgages. As with all of Dave's classes, I found this one real interesting (Tim found it annoying when I came home telling him if we want to sell the house in two years, we need to start working on it NOW).
Baby Step #6--Pay off your home EARLY.
Selling A Home
When selling a home, you should think like a retailer. The home should be in "near perfect" condition.
The MOST important aspect of preparation is attention to the curb-appeal of your home.
When selling your home, make sure that it is listed on the internet and has exposure through the Mulitple Listing Service.
The best realtors are worth more than they cost--and try your best to avoid friends or family (unless they're amazing realtors). This is your money!! No need to avoid hurting feelings at this time.
Buying a Home
Dave says that home ownership is a great investment for three main reasons:
This week's lesson was in Real Estate and Mortgages. As with all of Dave's classes, I found this one real interesting (Tim found it annoying when I came home telling him if we want to sell the house in two years, we need to start working on it NOW).
Baby Step #6--Pay off your home EARLY.
Selling A Home
When selling a home, you should think like a retailer. The home should be in "near perfect" condition.
The MOST important aspect of preparation is attention to the curb-appeal of your home.
When selling your home, make sure that it is listed on the internet and has exposure through the Mulitple Listing Service.
The best realtors are worth more than they cost--and try your best to avoid friends or family (unless they're amazing realtors). This is your money!! No need to avoid hurting feelings at this time.
Buying a Home
Dave says that home ownership is a great investment for three main reasons:
- It's a forced savings plan
- It's an inflation hedge
- It grows virtually tax-free
Dave also HIGHLY recommends getting TITLE INSURANCE. Title insurance insures you against an unclean title, which is when your proper ownership is in question. It is a very good buy.
What to Buy
Buy in the bottom price range of the neighborhood.
Homes appreciate in good neighborhoods and are priced based on three things: location, location, location.
If possible, buy near water or with a view.
Buy bargains by overlooking bad landscaping, outdated carpet, ugly wallpaper and the Elvis print. However...
Always buy a home that is (or can be) attractive from the street and has a good basic floorplan. Have the home inspected by a certified home inspector and REMEMBER that appraisals are an "opinion of value" but it's a better opinion (usually) than the current homeowner has.
DO NOT BUY: Trailers, Mobile Homes or Timeshares
Mortgages
Do not buy until you're ready (that means you are out of debt with a fully-funded emergency fund). Of course, Dave suggests the 100% down plan (pay for your house in cash) but if you MUST mortgage, he recommends this:
Get a payment of no more than 25% of your take home pay on a 15 year FIXED rate loan, with at least 10% down. Have a fully-funded emergency fund left over after closing.
AVOID these Mortgage Options:
- Adjustable Rate Mortgages--to sum these up, the lender is transferring the risk of higher interest rates to the borrower and, in return, the lender gives a lower rate up front.
- Interest Only Loans--these loans you're only paying interest. Dave says, duh!!
- Reverse Mortgages--these are bad because you're putting a paid-for home at risk and the fees are horrible.
- Accelerated or Bi-Weekly Payoff--Dave does NOT want you to PAY for this option. He states, "you can easily do this on your own" without getting charged!
- Tax Advantages of Mortgages--Dave does not want you to fall for the myth that you should keep your mortgage for the tax advantages. The math just doesn't work.
For example:
You have a $200,000 mortgage with an interest rate at 5%. The annual interest paid is $10,000. The mortgage interest is tax-deductible, so you would not have to pay taxes on the $10,000...but Dave asks, what does this really save you?
The taxable amount is $10,000...lets say you're in the 25% tax bracket. If you didn't get the $10,000 tax break, you'd have to pay $2500 to the IRS. Dave asks...why are you sending $10,000 to the bank instead of $2500 to the IRS? That is a $97,500 savings! DO NOT keep a mortgage simply for the "tax break."
...well after this lesson, I walked around the house with a notebook and wrote down all the "to do's"...
I've got my hands full for awhile. :) Good thing no one is planning on selling that thing any time soon.
Next week is my last week in FPU. So...one more lesson and then all done!
Wednesday, March 25, 2009
FPU-Find a Job You LOVE to do...
Well, I know I missed last week's FPU...as I was off in Paoli having a blast scanning grocery items (insert sarcasm!).
But, I got to go to FPU this week and I'm glad I did. This week's lesson was called "Working In Your Strengths." This discussed careers and taking on extra jobs. Interesting lesson!
Change Happens
The average job is now only 2.1 years in length. This means that the average worker could have as many as 20 different jobs in his or her working lifetime.
Exhale. Reading that statistic sure made me feel better about have three jobs in five years!
Discover Your Strengths and Weaknesses
How can you know where you ought to be and what you ought to be doing if you don't know who you are?
Speaker and author Marcus Buckingham has identified soem common myths that often rob people of having fulfillment and enjoyment in their careers.
Myth #1: As you grow, you change.
Truth: You do not outgrow your personality. You cannot become a successful mathmetician if you hate math...or a successful doctor if the sight of blood makes you faint. You will not outgrow your personality!
Myth #2: You will learn and grow the most in the areas in which you are weakest.
Truth: You grow in your STRENGTHS. You will grow the most in the areas that you already know (and LOVE) the most.
Identify Your Motivation and Passion
Do work you love--and make sure your morals and ethics align with this work.
From a personal experience, I can tell you it is very, very difficult to work for someone who's value system is very different from your own. That boss expects you to do things/say things that are not in sync with your own beliefs and it becomes very difficult to do a job well done.
You must also remember that though money is the point of working, it is never enough compensation for doing a job. You must factor in your life. Work to live. Don't live to work.
Find something that blends your skills, abilities, personality traits, values, dreams and passions.
"Career is a means to an end, not the end."-Anonymous
Dave stresses that you might find yourself working harder for a couple of years--but as his favorite saying goes, you have to "work like no one else, so that one day, you can work like no one else."
Sacrifices will obviously have to be made, but when you're deciding your career, make sure you take YOURSELF in to account. Most people spend a minimum of 40 hours/week at their place of employment. Make sure you can stand being there.
I'm going to actually take some of this lesson to my kids at Junior Achievement.
Tim is also going to read this lesson. (I usually just give him a summary of what I learned...I want him to read and register this one!)
Hope you enjoyed this week's summary!
But, I got to go to FPU this week and I'm glad I did. This week's lesson was called "Working In Your Strengths." This discussed careers and taking on extra jobs. Interesting lesson!
Change Happens
The average job is now only 2.1 years in length. This means that the average worker could have as many as 20 different jobs in his or her working lifetime.
Exhale. Reading that statistic sure made me feel better about have three jobs in five years!
Discover Your Strengths and Weaknesses
How can you know where you ought to be and what you ought to be doing if you don't know who you are?
Speaker and author Marcus Buckingham has identified soem common myths that often rob people of having fulfillment and enjoyment in their careers.
Myth #1: As you grow, you change.
Truth: You do not outgrow your personality. You cannot become a successful mathmetician if you hate math...or a successful doctor if the sight of blood makes you faint. You will not outgrow your personality!
Myth #2: You will learn and grow the most in the areas in which you are weakest.
Truth: You grow in your STRENGTHS. You will grow the most in the areas that you already know (and LOVE) the most.
Identify Your Motivation and Passion
Do work you love--and make sure your morals and ethics align with this work.
From a personal experience, I can tell you it is very, very difficult to work for someone who's value system is very different from your own. That boss expects you to do things/say things that are not in sync with your own beliefs and it becomes very difficult to do a job well done.
You must also remember that though money is the point of working, it is never enough compensation for doing a job. You must factor in your life. Work to live. Don't live to work.
Find something that blends your skills, abilities, personality traits, values, dreams and passions.
"Career is a means to an end, not the end."-Anonymous
Dave stresses that you might find yourself working harder for a couple of years--but as his favorite saying goes, you have to "work like no one else, so that one day, you can work like no one else."
Sacrifices will obviously have to be made, but when you're deciding your career, make sure you take YOURSELF in to account. Most people spend a minimum of 40 hours/week at their place of employment. Make sure you can stand being there.
I'm going to actually take some of this lesson to my kids at Junior Achievement.
Tim is also going to read this lesson. (I usually just give him a summary of what I learned...I want him to read and register this one!)
Hope you enjoyed this week's summary!
Tuesday, March 10, 2009
Financial Peace University
Today's lesson in FPU was "Of Mice and Mutual Funds."
This is what Tim does these days...so he of course isn't going to listen to anything Dave has to say! Ok, he might, but not without some of his own input!
The basic summary of this lesson was "don't put all your eggs in one basket." Which, I'd think is common sense. DIVERSIFY!! Spread the money around (investments) so if somethig goes wrong--you haven't lost EVERYTHING.
The analogy he gave us was pretty impressive. Imagine riding your bicycle up a hill (for those of you in Southern Louisiana, a hill is a steep incline which then becomes a steep decline, LOL!!). Can you remember trying your hardest to work your bike up that hill? All the pumping and struggling you had to do? The burning in your legs? Well, Dave says building up your investments--your nest egg--is very similar. You have to live without and contribute at least 10% to your retirement and it might be a struggle sometimes...but once you reach that hill's crest and you see the ride ahead of you, it's worth it. Feel the wind in your face!
Dave calls this the "Pinnacle Point." The point in which your money makes more for you than you make in a single year. This is when you get to "live like no one else."
Dave suggests diversification, keeping it simple and never investing with borrowed money.
DO NOT invest until you have completed baby steps 1, 2 and 3.
Baby Step 1: Put $1,000 in an emergency savings fund.
Baby Step 2: Pay off ALL debt except the house utilizing debt snowball (see Dumping Debt).
Baby Step 3: Build up three to six months expenses in savings....once these three are complete, you'll be ready for:
Baby Step 4: Invest 15% of your household income into Roth IRAs and pre-tax retirement plans.
Dave's favorite investments are real estate and mutual funds. He says with real estate to BUY SLOWLY, use patience, and buy with CASH (especially rental properties).
His final piece of advice was to "Build wealth slowly." He told us of a meeting he had with a billionaire and the billionaire told him to read "The Tortoise and the Hare," and that would put everything into perspective. The hare (those in a hurry) never wins.
So...if you have any further questions, I would have to direct you to Mr. Ramsey...or Tim (he knows a lot more than I do!!).
I guess I'm going to finally suck it up and file my taxes. Oh--how I love the Government sometimes!! (that, my friends, is sarcasm!!)
This is what Tim does these days...so he of course isn't going to listen to anything Dave has to say! Ok, he might, but not without some of his own input!
The basic summary of this lesson was "don't put all your eggs in one basket." Which, I'd think is common sense. DIVERSIFY!! Spread the money around (investments) so if somethig goes wrong--you haven't lost EVERYTHING.
The analogy he gave us was pretty impressive. Imagine riding your bicycle up a hill (for those of you in Southern Louisiana, a hill is a steep incline which then becomes a steep decline, LOL!!). Can you remember trying your hardest to work your bike up that hill? All the pumping and struggling you had to do? The burning in your legs? Well, Dave says building up your investments--your nest egg--is very similar. You have to live without and contribute at least 10% to your retirement and it might be a struggle sometimes...but once you reach that hill's crest and you see the ride ahead of you, it's worth it. Feel the wind in your face!
Dave calls this the "Pinnacle Point." The point in which your money makes more for you than you make in a single year. This is when you get to "live like no one else."
Dave suggests diversification, keeping it simple and never investing with borrowed money.
DO NOT invest until you have completed baby steps 1, 2 and 3.
Baby Step 1: Put $1,000 in an emergency savings fund.
Baby Step 2: Pay off ALL debt except the house utilizing debt snowball (see Dumping Debt).
Baby Step 3: Build up three to six months expenses in savings....once these three are complete, you'll be ready for:
Baby Step 4: Invest 15% of your household income into Roth IRAs and pre-tax retirement plans.
Dave's favorite investments are real estate and mutual funds. He says with real estate to BUY SLOWLY, use patience, and buy with CASH (especially rental properties).
His final piece of advice was to "Build wealth slowly." He told us of a meeting he had with a billionaire and the billionaire told him to read "The Tortoise and the Hare," and that would put everything into perspective. The hare (those in a hurry) never wins.
So...if you have any further questions, I would have to direct you to Mr. Ramsey...or Tim (he knows a lot more than I do!!).
I guess I'm going to finally suck it up and file my taxes. Oh--how I love the Government sometimes!! (that, my friends, is sarcasm!!)
Tuesday, March 3, 2009
Financial Peace University
This week's lesson was "That's Not Good Enough! How to buy only big, big bargains."
This lesson actually was very relevant to each and everyone of us as we're all adjusting our life styles to "stay afloat" during these rough economic times.
According to Dave Ramsey, there are three keys to a successful bargain:
1. Learning to negotiate everything. Don't be afraid to ask for the deal (even in retail)!
2. You must have patience. Don't get married to a purchase...a sales rep can spot that in a heartbeat.
3. You must know where to find the deals.
There are 7 Basic Rules of Negotiating:
1. Always tell the absolute truth.
2. Use the power of CASH.
3. Understand and use "walk-away" power.
4. Shut up. Those that talk too much give away their negotiating power.
5. "That's not good enough."
6. Good guy, bad guy. Don't fall for it.
7. The "If I" take away technique.
As for finding a good bargain? Well. It's funny that this lesson was given this week, as I start the prelimenary wedding planning. I was thinking...where can I cut costs and still have a beautiful reception?
This lesson actually was very relevant to each and everyone of us as we're all adjusting our life styles to "stay afloat" during these rough economic times.
According to Dave Ramsey, there are three keys to a successful bargain:
1. Learning to negotiate everything. Don't be afraid to ask for the deal (even in retail)!
2. You must have patience. Don't get married to a purchase...a sales rep can spot that in a heartbeat.
3. You must know where to find the deals.
There are 7 Basic Rules of Negotiating:
1. Always tell the absolute truth.
2. Use the power of CASH.
3. Understand and use "walk-away" power.
4. Shut up. Those that talk too much give away their negotiating power.
5. "That's not good enough."
6. Good guy, bad guy. Don't fall for it.
7. The "If I" take away technique.
As for finding a good bargain? Well. It's funny that this lesson was given this week, as I start the prelimenary wedding planning. I was thinking...where can I cut costs and still have a beautiful reception?
- Buy from INDIVIDUALS. They want to get rid of something, not make a profit.
- Estate Sales
- Public Auctions (be careful here...don't get "caught up in the moment and overbid").
- Couponing (see below)
- Garage Sales
- Repo Lot
- Flea Markets
- Refunding
- Foreclosures
- Pawn Shops (Dave says get over the "they're illegal goods mentality")
- Online Auctions (eBay really can get you some great deals--just ask Tim and Tyson with the computer cord fiasco)
- Classified Ads
- Consignment Stores (my SIL will swear by these for her little angel's precious outfits)
- Conventions (interesting one...if you float around conventions on the last day, a lot of the sales reps are trying to get rid of their products and will sell for a great deal)
With major changes coming up in our life, Tim and I have been working on cutting costs where we can. We LOVE Sam's and go at least once every other month (thanks to Mike and Big Lin for the AWESOME freezer, we can now buy in BULK). We've been working on coupons but haven't really found the groove that works best for us. However, yesterday I stumbled across a website that I think (if anything) has great advice. Check out couponmom.com (thanks Osborne Family!). If not for anything else, there is a great PDF "book" on "How to cut your grocery bill in half."
I'm going to start checking out yard sales and Estate sales to see if I can stumble across anything that would be fabulous for wedding reception decor.
And...now that we have to be very money conscious, I'm going to corner Tim and set this budget Dave Ramsey has been telling us to follow week after week. It's time to get strict! I'll let you know how that turns out.
Well, I hope this information has helped. I'm looking forward to applying it to some of my weekly shopping activities.
OH! I almost forgot another great tip I got from class...IF you find something on the internet that is cheaper than in the store (let's say you find a great sweater on target.com that costs $10 then you go to the store and it costs $20, trust me, it happens)...use Dave's SECOND key to bargaining--PATIENCE. Don't buy the more expensive product. Instead, go home, print out the internet price and go back to the store with the paper in hand. Show the clerk that you could purchase this for less online. According to my classmates, almost ALWAYS, the clerk will honor the internet price. Crazy, huh?
So go on!! Bargain away. Consider it an adventure!
Tuesday, February 24, 2009
Financial Peace University
This week's lesson was Clause and Effect, The Role of Insurance in Your Financial Plan...
The Basic Types of Coverage Needed Are:
1. Homeowner's or Renter's Insurance
2. Auto Insurance
3. Health Insurance
4. Disability Insurance
5. Long-Term Care Insurance
6. Identity Theft Protection
7. Life Insurance
He states also in this lesson...if you do not have a will yet, MAKE ONE!! A will is not for your benefit, but for the benefit of those left behind.
He stresses the importance of long-term care insurance as well...but also states, that if you are younger than 60 DO NOT get long-term care. Once you turn 60, you need to immediately get it. For those 60 and older, the last 6 months of your life are the most expensive months of your lifetime. Long-term care insurance will insure that your family members are not stuck with the bill or left pennyless.
He also mentioned that cancer insurance, accidental death etc. tend to be a rip off...as most health care or life policies will cover these instances.
It was kind of a downer night...talking about death and "what if" situations, but it is also something you have to face if you want to be financially at peace.
The Basic Types of Coverage Needed Are:
1. Homeowner's or Renter's Insurance
2. Auto Insurance
3. Health Insurance
4. Disability Insurance
5. Long-Term Care Insurance
6. Identity Theft Protection
7. Life Insurance
He states also in this lesson...if you do not have a will yet, MAKE ONE!! A will is not for your benefit, but for the benefit of those left behind.
He stresses the importance of long-term care insurance as well...but also states, that if you are younger than 60 DO NOT get long-term care. Once you turn 60, you need to immediately get it. For those 60 and older, the last 6 months of your life are the most expensive months of your lifetime. Long-term care insurance will insure that your family members are not stuck with the bill or left pennyless.
He also mentioned that cancer insurance, accidental death etc. tend to be a rip off...as most health care or life policies will cover these instances.
It was kind of a downer night...talking about death and "what if" situations, but it is also something you have to face if you want to be financially at peace.
Tuesday, February 17, 2009
Financial Peace University
As I missed last week's post I'm going to sum up two classes worth...but I'll do it quickly!
Last week's class--"Credit Sharks in Suits."
Key points:
--Just because you have a great FICO score does NOT mean you are winning financially.
--Essentially to have a good FICO score, you must be in debt...just great at making your payments!
--www.fico.com
--Make sure to check your credit score at least once a year
--If you are victim of identity theft, do not let the banks/credit cards make you believe you are the criminal. IF you are a victim of identity theft, you owe nothing, you pay nothing!
--Always set your priorities by the Four Walls. Pay these four things off FIRST then worry about paying off your credit (by using debt snowball):
1. Food
2. Shelter/Utilities
3. Clothing
4. Transportation
This week's lesson: "Buyer Beware."
This was a lesson on how marketing and advertising agencies are paid big dollars to convince YOU the consumer to purchase their goods. I found this to be a flashback of my college days...we all got a kick out of the segment that talked about supermarkets and how they purposely place items on shelves, etc. That IS what Vestcom does. So...buyer beware!!
Because you can always spend more than you make, you must develop a power over purchase by practicing five steps. When making significant purchases, make sure to go through these five steps to gain "power over your purchase."
1. Wait overnight before making a purchase.
2. Carefully consider your buying motives. No amount of "stuff" can ever equal contentment or fulfillment.
3. Never buying anything you do not underrstand (i.e. insurance, finances...I know a GREAT broker if you ever want to understand!!)
4. Consider the "opportunity cost" of your money. What will you have to give up to make that purchase?
5. Seek the counsel of your spouse or accountability partner.
I'll finish this summary with a quote Dave Ramsey said in tonight's lesson that really hit me. For those of you know how much I love to plan--you know how difficult this simple concept can be for me, sometimes. But this is a goal I'm living right now...day by day.
"Happiness is where you are RIGHT now. Own it."
Last week's class--"Credit Sharks in Suits."
Key points:
--Just because you have a great FICO score does NOT mean you are winning financially.
--Essentially to have a good FICO score, you must be in debt...just great at making your payments!
--www.fico.com
--Make sure to check your credit score at least once a year
--If you are victim of identity theft, do not let the banks/credit cards make you believe you are the criminal. IF you are a victim of identity theft, you owe nothing, you pay nothing!
--Always set your priorities by the Four Walls. Pay these four things off FIRST then worry about paying off your credit (by using debt snowball):
1. Food
2. Shelter/Utilities
3. Clothing
4. Transportation
This week's lesson: "Buyer Beware."
This was a lesson on how marketing and advertising agencies are paid big dollars to convince YOU the consumer to purchase their goods. I found this to be a flashback of my college days...we all got a kick out of the segment that talked about supermarkets and how they purposely place items on shelves, etc. That IS what Vestcom does. So...buyer beware!!
Because you can always spend more than you make, you must develop a power over purchase by practicing five steps. When making significant purchases, make sure to go through these five steps to gain "power over your purchase."
1. Wait overnight before making a purchase.
2. Carefully consider your buying motives. No amount of "stuff" can ever equal contentment or fulfillment.
3. Never buying anything you do not underrstand (i.e. insurance, finances...I know a GREAT broker if you ever want to understand!!)
4. Consider the "opportunity cost" of your money. What will you have to give up to make that purchase?
5. Seek the counsel of your spouse or accountability partner.
I'll finish this summary with a quote Dave Ramsey said in tonight's lesson that really hit me. For those of you know how much I love to plan--you know how difficult this simple concept can be for me, sometimes. But this is a goal I'm living right now...day by day.
"Happiness is where you are RIGHT now. Own it."
Thursday, February 12, 2009
Happy Birthday Will!!
Wow. I can't believe you're already NINE years old!! Where does the time go? It stills seems like yesterday that I was in the hospital room admiring my brand new nephew...now, you're NINE!
HAPPY BIRTHDAY!!! WE LOVE YOU!!
P.S. To my regular bloggers, I KNOW I have slacked big time in the blogging department this week. Souper Monday and Financial Peace University have both been neglected. I'll pick back up next week!!
Tuesday, February 3, 2009
FPU--Dumping Debt
In tonight's Financial Peace University, Dave Ramsey discussed "Dumping Debt."
The whole lesson was about "Debunking Debt Myths."
One of the myths that caught my attention (and got me to thinking about our Government...past and present) was:
"Debt is a tool and should be used to create prosperity."
Um??? I won't get into that any further...but it sure caught my attention. Maybe our Congress should take a class or two (and please, don't take any political offense to that statement, I'm speaking of Republicans and Democrats alike...) from Dave Ramsey. Paying special attention to the BUDGETING class and the DEBT class.
So, off the soap box and back to the class...he summed it up with this:
Steps To Get Out of Debt:
1. Quite BORROWING more MONEY. (just say NO to credit cards)
2. You must SAVE money.
3. PRAYER really works.
4. SELL something. ("Sell so much stuff that the kids think they're next")
5. Take a part-time JOB or work OVERTIME. (don't become a workaholic...but if you work like no one else, one day you can work like no one else.)
Pay off your debt using the debt snowball. List your debts in order, from the smallest balance to the largest. As you start to eliminate debt, you'll start to build "serious momentum." The idea of the snowball is simple: pay minimum payments on all of your depts except for the smallest one. Every time you pay off a debt, you add its old minimum payment to your next debt payments. You can go from paying $25/month to $$50/month on a credit card statement and see your debt start to disappear!
I have truly enjoyed this class and look forward to passing on the kit to my family (Cherie--you're DEFINITELY getting all that I can get my hands on as I KNOW you and Dave will eat this up!!!)
I hope everyone has had a fabulous Tuesday! I'm off to play with my budget, watch some Gossip Girl (it's bowling night--so TOTAL control of the tv) and blog stalk. Gotta love that multi-tasking, eh?
The whole lesson was about "Debunking Debt Myths."
One of the myths that caught my attention (and got me to thinking about our Government...past and present) was:
"Debt is a tool and should be used to create prosperity."
Um??? I won't get into that any further...but it sure caught my attention. Maybe our Congress should take a class or two (and please, don't take any political offense to that statement, I'm speaking of Republicans and Democrats alike...) from Dave Ramsey. Paying special attention to the BUDGETING class and the DEBT class.
So, off the soap box and back to the class...he summed it up with this:
Steps To Get Out of Debt:
1. Quite BORROWING more MONEY. (just say NO to credit cards)
2. You must SAVE money.
3. PRAYER really works.
4. SELL something. ("Sell so much stuff that the kids think they're next")
5. Take a part-time JOB or work OVERTIME. (don't become a workaholic...but if you work like no one else, one day you can work like no one else.)
Pay off your debt using the debt snowball. List your debts in order, from the smallest balance to the largest. As you start to eliminate debt, you'll start to build "serious momentum." The idea of the snowball is simple: pay minimum payments on all of your depts except for the smallest one. Every time you pay off a debt, you add its old minimum payment to your next debt payments. You can go from paying $25/month to $$50/month on a credit card statement and see your debt start to disappear!
I have truly enjoyed this class and look forward to passing on the kit to my family (Cherie--you're DEFINITELY getting all that I can get my hands on as I KNOW you and Dave will eat this up!!!)
I hope everyone has had a fabulous Tuesday! I'm off to play with my budget, watch some Gossip Girl (it's bowling night--so TOTAL control of the tv) and blog stalk. Gotta love that multi-tasking, eh?
Tuesday, January 27, 2009
FPU cancelled due to inclement weather...
Well, my Dave Ramsey's FPU was cancelled tonight due to inclement weather. The inclement weather thus far has been nothing but rain (but no complaints here!!).
On another note, Ty has been a bad, bad boy!! We were watching Big Love on DVR and I looked down to see my pup CHEWING on our computer cord. That now no longer works.
Tim was NOT pleased with the results!!
Ty has been spending the rest of the evening sucking up to Tim...who keeps reminding him that he just cost him a computer cord.
On another note, Ty has been a bad, bad boy!! We were watching Big Love on DVR and I looked down to see my pup CHEWING on our computer cord. That now no longer works.
Tim was NOT pleased with the results!!
Ty has been spending the rest of the evening sucking up to Tim...who keeps reminding him that he just cost him a computer cord.
Tuesday, January 20, 2009
FPU, Historic Day and More...
Well, today was my third session of Dave Ramsey's Financial Peace University. This week was more intense than the previous two lessons. The homework assignment is definitely the most intense we've had thus far...we're supposed to develop a monthly budget where every single dollar of your income should be allocated to some category. When we're finished with the budget, the total household income minus total expenses should equal zero. Shoo! I'll be working on that for a minute...and hmmm...to even track down Tim to contribute his input?!? Should be interesting.
Some key points of the lesson (because we mainly focused on the actual budget making) were:
- Budgeting is not a method by which you make other people behave. Budgeting is a method by which you make money behave.
- People don't plan to fail, they fail to plan.
- Money flows from those who don't manage it and to those who do.
Next on the agenda...
Today was undoubtedly an historic day. Barack Obama became the first African American man to be come POTUS. Regardless of your political affiliation or views, it is a moment in time we'll all remember.
Finally, yesterday Tim and my brother went to see Bloody Valentine in 3D. Tim brought the glasses home and decided Tyson should model. Thought I'd show off our precious 3D glasses model:
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