Three years ago my mom gave me Dave Ramsey’s Financial Peace University (FPU) kit for my birthday. While I was a little skeptical, at first, I read the book and listened to the CDs on my way to and from work…and I allowed Mr. Ramsey to change my perspective on how I handled money.
So, when my boyfriend (now hubby) and I were getting serious, we watched the DVDs together. I could tell he was a little skeptical, as well. However, he gave it a try. He saved up and purchased my engagement ring with cash, and when we got married, we did so, debt-free (you can read about that here); even our honeymoon was paid in cash! During our first 7 months of marriage we worked hard at paying down our debt, which included his car and my student loan.
In November, we discovered we were pregnant! Being just one payment shy of having the hubby’s car paid off, we went ahead and made the final payment, and then pushed pause on our debt-snowball; only making a minimum payment on my student loan each month. Then, we saved during the pregnancy. We did purchase a used car, with cash, when my car went out of commission earlier this year, but then we continued to save. After this mommy and baby came home from the hospital, we used the money we’d saved to pay off the hospital bills, and put a huge chunk down on my student loan.
And on October 31st, 2017, we made our LAST student loan payment, making us DEBT FREE at last!!
Now, we’re on to Step 3, and then on to what Dave calls Step 3B, which is a down payment for a house. And guess what! YOU can do it too! It takes hard work and self-discipline, yes, but it’s possible!
Have I mentioned that after baby girl came, I left my job!? I’m now a stay-at-home mom, because we made good financial decisions based on Dave Ramsey’s principles!
Do you have any dreams or goals that you continually push aside, because your finances prevent you from chasing them? Perhaps you should check out Dave Ramsey’s FPU. You won’t regret it.
7 Baby Steps
- Step 1: Save $1000 Emergency Fund
- Step 2: Debt Snowball
- Step 3: Save 3-6 months of Expenses << This is where we are now!
- Step 4: Invest 15% of Household Income
- Step 5: College Funding for Children
- Step 6: Pay off House Early
- Step 7: Build Wealth & Give!
Congrats! Besides save for your emergency fund, what do you plan to do with the “extra” money?
The emergency fund is our priority, but we’re also trying to save for a down payment on a home and moving expenses.