Debt is dumb!
Posted on October 8, 2005, under General.
I’ve been reading the book The Total Money Makeover by Dave Ramsey. This is the first personal finance book I’ve actually enjoyed reading! Mr. Ramsey is a great author and his passion for good money management shines through the book as a he deals with serious subjects in a practical, but enjoyable way. You can read a sample chapter of the book online, although I would say the most enjoyable chapter so far has been the one dispelling common myths about using debt and trying to ‘game’ the system for personal gain. It’s well worth the read, in my opinion.
So we are now working our way to being debt free. We plan to have all our debt (including both cars), except the mortgage, paid off in 2006. Then, we’ll build up our savings from there and keep working on the “7 Baby Steps” path:
7 Baby Steps
- $1,000 to start an Emergency Fund
- Pay off all debt using the Debt Snowball
- Three to six months of expenses in savings
- Invest 15 percent 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
Gaining personal wealth isn’t complicated, it just takes self-discipline and work. The great part about Dave Ramsey’s show is that he helps you have a fun time doing it.
You can catch the “Dave Ramsey Show” on your local radio station, listen online, or subscribe to the 1-hour podcast.
Politics of Envy » Hello..and you are? on July 6, 2008
[...] have had our eyes opened by Dave Ramsey on how we could manage our money much better, and not only get out of debt, but stay out of debt. We’ve been on the plan for several years now, and we could not be more [...]