Sunday, December 20, 2009

Dave Ramsey setting me on the road to financial freedom

I have been listening to Dave Ramsey for the past month and have really started following his program.

If you haven't read The Total Money Makeover, you really should. His baby steps are truly life changing. I am on baby step #2 which is pay off all debt excluding the house. I even have my fiance on board. In January we are going at this debt with gazelle intensity while also cash flowing our wedding in Jamaica.

As a couple our debt stands at close to $100000. I have roughly 80000 in student loan debt while my fiance has $20000 in debt. We are giving ourselves 2 years to pay it off.

Right now in my debt snowball I have my undergrad loans and my first masters loans. According to my snowball and my own type A tendencies one will be paid off this month, one in May, one next December, and one in November of 2011.

That does not include the loans from the second masters. Just getting rid of half my student loans will make my financial life a lot better.

Baby Step 3 is to save 3-6 months expenses in an emergency fund
I love that idea but I am going to follow Suze Orman and save a little more than 6-8 months, which for me would be $20000.

Slowly but surely I'm on the path to financial freedom!

until next time, think prosperous thoughts

YBP

3 comments:

Small Budget, Big Style Chick said...

That's awesome that you're on track with your goals! I've heard a lot about Dave Ramsey but I think I'll look for his book on my next trip to the library.

YBP said...

yes, you have to get it. It is really life changing!

Broke by Choice said...

I read Total Money Makeover in 2007. As you said it is truly life changing. I have been fortunate to pay $57K (including interest) on $105K in debt. If you stick to the plan you and your fiance will be debt free in no time.

Good luck!