We started
Financial Peace University a few weeks ago. Dave Ramsey is pretty much a genius. He's got a radio talk show, people call in and tell him about their financial problems and he has the best advice. I love listening to his show. Colby brought home a flier from preschool in December for Dave Ramsey classes. It took some convincing for Jason to agree, but he's definitely on board now. There are 7 baby steps to being totally debt free. 1) Have $1000 in emergency funds. 2) Pay off all debt except mortgage. 3) Save 3-6 months of monthly income. Somewhere down the line is paying off your house early and saving for college. That's all we've learned about so far. And he has a process planned out for each step. It's incredible. The guy who leads our class (you watch a 1 hour dvd, then have discussion for an hour) started 3 1/2 years ago. Since then they have paid off $57,000 in debt, have their 6 months savings, and he will be paying off his house in 18 months. I think this should be taught in high school. How different would life be if everyone knew how to handle their money? Dave is all about saving up to make purchases--cars, couches, tvs, etc. You can't get what you want right when you want it, but isn't that how most people get into debt in the first place?
I
HIGHLY recommend the class. You can find locations from that link. The one we're going to is at the church where Colby has preschool. We were able to get the supplies
much cheaper through them, since they bought in bulk, and they provide free child care. For 3 kids, two hours every week for 13 weeks? It's almost like a date night, And well worth the $80. He also gives advice about how to teach toddlers to teenagers how to save and the concept of earning money.
Our budget class was Thursday, so with a new budget in place we're going to stick to it. We've tried budgeting before, but without much conviction. These classes are going to change our lives.
Example: Instead of paying for haircuts for Jason and Colby we bought some hair clippers at Costco ($20, that's probably less than the cost for both of them to get haircuts once each when you include tips) and they both had haircuts last night.
(I've been trying to grow out Colby's hair, but it's just too mangy most days. Maybe when he's a little older and will wash his hair every day.)Before & After
So there's my blurb. I'm telling you, Dave Ramsey is my new best friend!
17 comments:
I keep meaning to look him up - maybe I'll try to work for Dave Ramsey when I graduate. :) It's pretty much exactly the kind of thing I want to do!
And I agree 100% that they should teach this stuff in High School. I've been saying the same thing for a few years...
Oh, except he's located in Nashville. Oh well, it was a good idea while it lasted...
I'm totally going to find somewhere I can take his class. I love him!!
copy and paste this link to Ramsey's website to find a class near you
http://www.daveramsey.com/fpu/locate-class/
Be prepared that most of them held on weeknights in Christian churches, but I don't think there's any proselyting involved. For it to work, you have to go with your spouse.
I love listening to Dave Ramsey and would love to take the classes. I always found it ironic that his classes are about financial freedom and people taking the classes obviously are looking to be more secure financially but then the books cost almost $100. Anyone?
I love what I have heard- I was a die-hard rich dad/poor dad fan back in the day. I think a lot of that advise destroyed people though, so I am really glad that I did not use what I learned (trade in your houses for hotels!). The Dave Ramsey approach seems very logical, but I agree, it is a little expensive and kind of... unkind to the working woman's schedule ;-)
Colby's hair looks fantastic. I have to say though, I tried cutting my ex-husband's hair a couple times and it was terrible. TERR.IBLE. A talented hair-dresser, I am not.
i keep noticing the signs at the former alameda triplex. dave is going to be there in feb. dad and i will have to go. love colby's haircut. but please, no cuts for eva:) you have convinced me. mom
Here's a thought, because it's what they do in microfinance...the fact that you have to pay a seemingly steep fee upfront could be because they want you to feel that you are making an investment (because you are), and you're going to take it a lot more seriously because of it. If you paid 5 bucks to take the course, you may or may not do all (or any) of the readings, you probably wouldn't think anything of missing a class here or there because other things come up (as they always do), and you just wouldn't be 100% committed. It's psychological. If it didn't hurt a little, would you really take it as seriously?
Does that make sense? It's a big reason why they make microfinance clients build up a savings account before they're allowed to take out a loan.
His ideas are quite simple really. Most of it is common sense. And just like any other method, if you buy into it and believe in it, it will work.
The church has taught for years to live below your means and have a good savings account and plan for the future. All you need to know is this-stop using credit forever, stop spending money on nonessentials, pay off your debt.
I know, I thought the same thing about spending a big chunk. But another thing about FPU is you become a lifetime member and you can go to any class any time and not have to pay to refresh your financial knowledge. Probably half of our class are repeat members. Where we are taking the class they told us we could pay it off as we went along, monthly, whatever we wanted.
Something about this class is it gives you the process, when you think about all these things you should be saving up for little by little, (clothes, Christmas presents, taxes, car repairs, doctor visits, etc.) it seemed so overwhelming to me, but the book has budget sheets that make it seem so much simpler. It's just so easy to not think about that stuff and then have to put it on the credit card when it comes up. (Like Colby's visit to the dentist last week.)
Yes we love Dave as well. We have a long way to go, but it has been great for us.
Colin, the books aren't $100. You can get his books for really cheap if you just want the books, like $10. The class is what is a bit more expensive. But I still want to go...
Come on guys, you are talking about $100 like it is the down payment on a house. How quickly do we blow $100. Take the fam out to Chilies and go to a movie and you are pretty much there.
It is a real great but sad thing that we have to go to a 12 week class to learn something so simple. To not spend more than you have and save for a rainy day. I sometimes wonder how two generations ago did it when there was no such thing as credit cards and women couldn't get a credit card unless they were married. The accessibilty to instant credit is astounding. A blessing and a curse all at once.
Jason
Hear, hear!!
And Dana, I think the way it worked without credit was that when you ran out of money, you just stopped doing things, and that was that. Ah, the blessings and curses of leverage. My finance classes have taught me more about it than I ever thought I needed to know.
We love Dave too! We got to go listen to him live last year, and since then are starting his baby steps. We got our emergancy fund, and are still working on the debt snowball. Good luck to you guys.
when we got married, a short almost 37 years ago, few people had credit cards. hmmmm.....
Your title made me laugh becasue i always say I hate Dave Ramsey ,I have a love-hate realtion ship with him! but when I call him in 2years and 8 months to say I am dept free and have my 6 months savings becasue of him, then I will LOVE him. But untill then I am greatfull for him but he is not my fav person everytime i want to by something:) JK We are BIG fans of the Gazelle Man! Good job guys! That is awesome you doing his program/ way of life!
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