Dumping Debt: Part 3

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!
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Dumping Debt: Part 1

I’ve been a little hesitant to write this post, not because I don’t want to share this information with you, but because the Internet is swamped with this info. So, at the risk of sounding redundant, here goes…

When I graduated with my Bachelor’s in Communication Studies from UNCW in 2009, I left school without any school debt. I’d lived at home and worked my way through school; therefore, I paid off my small personal loans as I made money working through school. However, when I returned to school in 2011 for my Master’s in Human Services Counseling, I was working full time, and although I began while still living at home, I got a little rambunctious and prideful and moved into my own apartment while earning my M.A. I began to take out student loans for school, and even put a little on my credit card—books, new computer, a bloggie camera that I needed for a class—on top of this, during the summer I put a trip to Puerto Rico on my credit card, when a friend got married there. Yeah, I know, bad idea!

So, where am I going with this? Well, last year my mother gave me Dave Ramsey’s Financial Peace University Kit for my 30th birthday. At first, I thought “really?!” Hahahaha, but once I started reading the book I realized the man made great sense! He breaks everything down into steps…

7 Baby Steps

  • Step 1: Save $1000 Emergency Fund
  • Step 2: Debt Snowball
  • Step 3: Save 3-6 months of Expenses
  • Step 4: Invest 15% of Household Income
  • Step 5: College Funding for Children
  • Step 6: Pay off House Early
  • Step 7: Build Wealth & Give!

So far, I’m still on Baby Step 2. I think I’ll be here for a little while, but I’m already proud of myself for creating and sticking to a monthly budget, not using my credit card for Christmas gifts (that was a big one for me, because I’d been doing it for the last couple of Christmases), and already having paid $446.48 towards lowing my credit card bill since I’ve started. I’m slowly but surely getting there. If you’ve never heard of Dave Ramsey or Financial Peace University (FPU) please be sure to check them out. I’ve added the book for FPU to my suggested reading list on my Resources link.