Monday, October 13, 2014

Dave Ramsey's 7 Baby Steps

HA. Ha. Haa.
It's funny because it's true and you laugh so you don't cry ;D  
But yes, debt. Ew. 

I'm like the opulence guy...

"I like the best. But I also like savings da money."

I definitely try to make smart financial choices, although of course sometimes I make mistakes. But I've had a budget that I've TRIED to stick to!!! For the last 3ish years, I've tracked every purchase and made payments on my debt. I have a little debt from my car, a lotta from school, and just a tiny amount from my recent gum surgery. 

I've always been pretty good at not getting financially out of control, but I've never really felt on top of my finances. As they say, "If you don't control your money, it will control you." That's how I'd sometimes feel. Like I was living paycheck to paycheck and trying to get my debt paid off and just not making any progress. :/

It was on my mind a lot especially because at work we were setting lifelong goals. I wanted to make sure I was being smart about my money, not just going along for the ride. Another quote I love, "Money is a a game. You have to figure out how to win it together."

I really, really, really liked this pin I came across. So simple. Yet, it's been making all the difference for me. In the last couple months I've been trying to get my financial house in order. 

I've made all the bills that I can automatic. I used to pay them manually, because I would sometimes get my paychecks late, etc. and I didn't want it to overdraft my account. But I sat down and planned out which bills would come out of which paychecks to make sure they were semi-evenly split between my two monthly paychecks. Then I set up auto pay for them all a few days after my paycheck is due. It's awesome, because I'm not worried anymore if my paycheck is a day or two late. It's nice to have that stress gone. Now I just have one manual payment per paycheck, and the rest just get taken out, including some automatically going into savings.

Because the first step is to build an emergency fund! This is so important. I've always felt wrong somehow about saving while I was also trying to pay off debt. Dave Ramsey says that's a common mistake, that people think it's one or the other, when really they should do a little of both. I love this, because I've had little financial emergencies where I just need a little more money, and I've borrowed from my loving sis, but I hate having to live with that worry. It already feels SO NICE to know I have just a few dollars in the bank just in case. My plan is to save and put half towards a $1,000 emergency fund and half towards other things, like dental work and fixing up my car and stuff.  Then, once those things are all taken care of all of my mula is going to go to debt repayment.

Seriously, it will be so nice to just be that financially stable:) But after a small savings and getting those odd expenses paid for, I'll be able to start really focusing on my debt. By then my gums will probably be paid off, so I'll focus on getting my car paid off then snowball that towards school. I should be out of debt in about 2.5 years, which will be awesome!!! My goal is by April 1, 2017, which will be my 27th birthday. (Weird...)

There are a few more steps after that which are just as important, but these first couple are what I'm focusing on for now. It feels so good to just have a plan and know that I'm getting in control of my finances and I can feel good about where I'm at, even if I currently have debt and even if I'm not a zillionaire. :)
Here's a link to Dave Ramsey's website if you want to check it out.

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