Goal 1: Finances the Dave Ramsey way

"If you live like no one else, later you can live like no one else."

Dave Ramsey

Goal 1: Get financially fit.
   A couple of weeks ago I mentioned in the book The Total Money Makeover by Dave Ramsey.  This book centers around a series of baby steps.  Step 1 is "Save $1000 fast".  I have finished this step, and it is an enormous relief to know that it is there.  If something were to break, I have the money at to fix most minor problems.  Step 2 is "The Debt Snowball".  I am working on this one now.  Depending on the amount of debt and income, it can take anywhere from a few months to a few years.  The idea is simple, write down all you debts in order from smallest to largest.  Make minimum payments on all debts except for the smallest one.  Scrape together all the extra money you can and use it to pay off the smallest debt.  When that is paid off, use the money you were paying on that to pay off the next smallest debt.  By the time you get to the last one you are using the same amount of money you were when you started, but paying off debt at a faster rate.  Step 3 is "Finish the Emergency Fund".  Dave says "kick Murphy out.".  You should ultimately have three to six months of expenses saved up.  That way if you loose a job you still have enough money to live on for three to six months.  Plus if your car dies, you could buy a cheap used car paid for in cash.  Step 4 is "Maximize Retirement Investing."  Step 5 is "College Funding."  Hopefully with this your kids will never know the pain of student loans.  Step 6  is "Pay off the Mortgage."  Step 7 is "Build Wealth Like Crazy."  If you finish all seven baby steps, you will have complete peace of mind when it comes to finances.
   I highly recommend this book along with Dave's book Financial Peace.  Dave also has a program available in many churches called Financial Peace University.  I have not taken this course yet, but would like to in the future.  Have any of you taken it?  If so, feel free to share your experiences.