*I’m still working through some technical difficulties at the moment, so please forgive the fuzzy background noise in this episode! I’m learning about how to achieve good sound quality with the equipment and location I have to work with.*
My husband and I were married in 2007. We thought we were pretty frugal, and tried to be wise with the very little money we had. And, in comparison to some people, we were. But we had a hard time relating to each other when it came to money. We weren’t sure what goals were best, and we often wondered where all the money went when we were trying to be thrifty and use self restraint.
That all changed in 2009 when we were introduced to Dave Ramsey. We took Financial Peace University.
It changed our lives forever. We finally understood one another’s feelings about money, and we had a plan! Dave Ramsey’s Baby Steps taught us what to focus on when, and channel all our resources to each Baby Step so that we weren’t scattering all our energy and money on every possible good idea at once.
- Baby Step 1: $1,000 cash in a beginner emergency fund
- Baby Step 2: Use the debt snowball to pay off all your debt but the house
- Baby Step 3: A fully funded emergency fund of 3 to 6 months of expenses
- Baby Step 4: Invest 15% of your household income into retirement
- Baby Step 5: Start saving for college
- Baby Step 6: Pay off your home early
- Baby Step 7: Build wealth and give generously
Right now we are on Baby Step 2 – Pay off all debts (except the house). The key to staying on track with our goals and paying off our debt, at least for us, has been keeping a budget! In this episode of the Making Hope podcast, I talk about how we budget and give some tips to getting started!
I also found this article to be very helpful. It reviews EveryDollar vs. Mint as budgeting tools.