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Avoid the Lies of Becoming Debt Free
Rachel Cruze’s podcast has been a great motivator for our financial goals. Hers combined with “The Dave Ramsey Show” has helped us stay motivated and on track with our goals.
Her recent episode 3 Things Society Doesn’t Want You To Know About Money has been a great reminder that we can do this. The biggest lesson I have learned that is emphasized is the importance of having a plan! If we don’t have a plan, we are planning to fail.
This is Dave Ramsey’s baby steps to becoming debt free and an everyday millionaire:
- Save $1,000 for Your Starter Emergency Fund
- Pay Off All Debt (Except the House) Using the Debt Snowball
- Save 3–6 Months of Expenses in a Fully Funded Emergency Fund
- Invest 15% of Your Household Income in Retirement
- Save for Your Children’s College Fund
- Pay Off Your Home Early
- Build Wealth and Give
Here are a few wise principles I have learned from the Ramseys:
- You have to change your mindset – Money is 80% behavior, 20% head knowledge.
- Stop believing the lies that debt is normal.
- Get a plan (7 baby steps) and stick to it.