Hundred Dolla Billz$

Life & Money

I know this topic isn’t fun or really that exciting but I do believe it’s important to think about as money is one reason why you work. Course there’s tons more to say here but here’s a mini nugget on breaking the chains of debt.   

 Get out of debt the same way you learned to walk, one step at a time.

 Just know if you are in debt – you don’t have to stay there.  I truly believe you can go from the negative to the positive with a few practical steps.  And whether your debt is credit card, student loans, or trips to St. Tropez, all things are possible.

 I’m a believer in Dave Ramsey.  Check him out: (www.daveramsey.com).  He’s has the number 3 ranked radio show in the US and he’s helped millions of people become debt free.  I’ve personally done his program and become debt free.  So if I can do it, you can do it!  Dave is a no-mess-around type of guy and his motto is “Live like nobody else, so you can live like nobody else.” #Yes

 
Here are 7 steps to Dave’s total money makeover (a plan which I have in fact carried out, I’m currently on Step 4):

 Step 1 – Save a $1,000 Emergency Fund.  An emergency fund is for those unexpected events in life that you can’t plan for: the loss of a job, an unexpected pregnancy, a faulty car transmission, and the list goes on and on. It’s not a matter of if these events will happen - it’s a matter of when.

 
 Step 2 - Pay off all debt using the Debt Snowball.

List your debts - excluding the house - in order. The smallest balance should be your number one priority. Don’t worry about interest rates unless two debts have similar payoffs. If that’s the case, then list the higher interest rate debt first. 

The point of the debt snowball is simply this: You need some quick wins in order to stay pumped up about getting out of debt! Paying off debt is not always about math. It’s about motivation. Personal finance is 20% head knowledge and 80% behavior. When you start knocking off the easier debts, you will see results and you will stay motivated to dump your debt.

 Step 3 – Save 3 to 6 months of expenses in savings.

 Once you complete the first two baby steps, you will have built serious momentum. But don’t start throwing all your “extra” money into investments quite yet. It’s time to build your full emergency fund. Ask yourself, “What would it take for me to live for three to six months if I lost my income?” Your answer to that question is how much you should save.


Use this money for emergencies only: incidents that would have a major impact on you and your family. Keep these savings in a money market account.

 
 Step 4 - Invest 15% of household income into Roth IRAs and tax-advantaged retirement accounts.

 When you reach this step, you’ll have no payments—except the house—and a fully funded emergency fund. Now it’s time to get serious about building wealth. 


Dave suggests investing 15% of your household income into Roth IRAs and pre-tax retirement plans. Don’t invest more than that because the extra money will help you complete the next two steps: college savings and paying off your home early. 

 
Step 5 
- College funding for children.  Save lots of dollarz for your kids. 

Step 6 - Pay off your house early.  No house payment? Amazinggggg.

Baby Step 7  - Build wealth and give.  And this is a legacy-building characteristic.

 More on Dave: www.daveramsey.com 

I do suggest listening to his radio show (also listed on his website) at least once a week. Uber helpful.

 Live like nobody else, so you can live like nobody else.

 XO,

Bex