Thursday, April 10, 2014

Getting Out of Debt!!

My husband and I are so excited to start The Total Money Makeover by Dave Ramsey.  This is NOT a sponsored post, but I love it so much that I think everybody, with any sort of debt, needs to do this plan.  There are affiliate links in this post for your convenience.  Here is the book in case you want to buy it.  I checked it out at the library and then bought the audio books for my husband because that way he just listens to them on the way to work.

It is really a very good book, and a good plan.  It is something that you read and think, "well duh!  That makes a ton of sense.  I wish we would have done this 10 years ago!"  But there is no time like now and that is where we are.

The first step in his plan is building a budget.  It is amazing how much money goes in and out of our accounts and we have no idea where it goes, or if there are things that we buy that we really can't afford.  It is really crazy when you sit down to do this if you have never done it.  I got another one of his books called Financial Peace and it gives a little more details on building a budget.

There is a Monthly Cash Flow sheet in the back of the books that you can use.  For me it was easier to alter it to fit our actual bills and put it in excel format.  Then Financial Peace says to build your monthly budget and then do a budget per pay period.  My husband gets paid every week so we have to build essentially 5 budgets every month!  And the budgets need to be Zero budgets where every cent has somewhere it is going.  There shouldn't be any money floating around without a home.

I will keep everybody posted on our financial progress.  We are so excited to get started even though we know it will be hard and there most definitely will be sacrifices (we are canceling our cable this week!), but if it was easy, everybody would be debt free.  The hardest part is getting used to the idea of not buying things you want or doing things that you want to do.  If it isn't in the budget, it just can't happen.  I know the first few months on a budget won't be perfect and it will be a trial and error phase until we get the ball really rolling, but just the idea of not dreading paying bills every week and living paycheck to paycheck is enough to make us want to give it all we have to make it work.  I hope you will at least check out the book, or you can listen to his radio show at and click on the radio show on the left.

Good luck and happy budgeting!

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