Dave Ramsey Review

Dave Ramsey Classes

2012-07-26T21:44:00.001-07:00

Financial Peace University DVD Review

In these tough economic times it’s more important than ever to have a solid financial plan and to be able to live as debt free as possible. It’s never fun to be under a mountain of debt, even less fun when the economy is as tight as it is right now.

Can Financial Peace University help you? I think it would help most people to be honest. There are a lot of things about being financially responsible that we just don’t get taught during our growing up years.

The first few weeks of the class sets up a framework for you to build on in the coming weeks of the class. Before you can fix your debt problems it’s important to know why you got into debt to begin with. Learning how you and your spouse (if you have one) relate to one another about money and the differences you may have is an important step toward getting out of and staying out of debt.

What will you learn in Financial Peace University?

Setting up an emergency fund – small at first, then added to later as you are out of debt

Money in marriage – different outlooks on money and the importance of regular meetings to discuss budget and finances

Setting up a plan for your money

Dumping Debt – using the envelope system and the debt snowball system, categorizing your debt

Making responsible purchasing decisions

Planning for the future

Reasons why we get out of debt and save

Overall, I think the Financial Peace program is a good one that I could recommend to just about anyone. Whether you are looking to get out of debt, avoid getting into debt, or just have better control of your finances.

Dave Ramsey's Total Money Makeover Review

2012-07-26T21:26:00.000-07:00

If I were to sum up Dave Ramsey’s Total Money Makeover book I would say that it helps you set up a good framework to get yourself out of debt and back on a firm financial footing.

At the heart of the book is his ‘baby steps to financial freedom’.

Save $1000 in an emergency fund
Start the debt snowball
Save 3-6 months living expenses
Invest 15% of your income towards retirement
Save for the kids’ college
Pay off your home
Build wealth – invest, donate, enjoy life (without going into debt)

This book is consistently in Amazon’s top three financial books list. If you are struggling with debt, or if you are just starting life out on your own and don’t want to be in debt, you might want to give this book a read. The financial advice is solid and works. The motivational stories in the book tell of people who were in really dire financial straits and managed to pull themselves out of debt.

Dave Ramsey Envelope System - Simple Is Sometimes The Best

2012-07-06T10:30:00.000-07:00

You have a budget, but do you still find yourself spending too much? The Dave Ramsey envelope system can keep your finances organized and help you learn to spend your money in better ways.

What you need is a simple system to help get things under control. Back in the day people used envelopes to help control their monthly spending. That system has fallen out of use as more and more people just swipe the old debit card. The envelope system is a key part of the Total Money Makeover because it works well.

What Are The Basics For Starting The Envelope System?

Budget each paycheck – I know, that’s a nasty word for some people, but you have to budget if this is going to work for you.

Divide your money – There may be bills that get deducted from your bank account or that you have to pay by check that you won’t be able to have an envelope for, but you can make envelopes for everything else such as food, gas, clothing, and entertainment.

Fill up the envelopes – After you have budgeted your cash expenses, fill each envelope with the money you have allotted for that item. For example, if your amount for clothing is $100, then put that amount in the envelope.

When it’s gone, it’s gone! Once all the money in an envelope is spent, you have no more money for that category until the envelope is ‘recharged’ on the next budget cycle. This doesn’t mean that you can just go to the ATM and grab more. No fair using your debit card either. While you can’t get into debt using your debit card, it does make it way too easy to overspend. There is something about spending cash that hits your psyche and helps you curb your impulsive spending.

Give it some time. It’s going to take some time to get the envelope system perfected. You can make some adjustments to the system if you need to for your pay periods and add the small things you found that you forgot in the original run through. Once you get the hang of the envelope system you will see how it benefits you and your plan to be debt free.

The Dave Ramsey Debt Snowball - Does It Work?

2012-07-06T01:37:00.003-07:00

People don’t get into debt because they don’t understand how debt works. They understand that if you don’t pay off your credit card every month you will have debt and interest to pay.

The debt snowball strategy has gotten a lot of attention over the years. The strategy is that you list all your debts and what the monthly payment is. If you have extra money to put towards debt, start with the smallest debt first and pay it off.

When that debt is paid off you just add the amount you were paying them to the second smallest debt. This way as you are paying off your debts, your payments being paid to the other debts increases like a snowball rolling down hill.

Why does this strategy work? It has to do with having small successes to help you stay motivated. It might make more sense financially to put your money towards the debt that has the highest interest rate first, right? By paying off the smallest debts first, the number of debts you have decreases. These small successes give you hope that you can actually be out of debt and also increases your motivation to get and stay debt free .

The brilliant part of the whole strategy is that it accounts for human psychology. Remember how I said earlier that people don’t get into debt because they don’t understand math? People aren’t stupid, they just make bad choices sometimes when it comes to money. As they pay off those small debts they feel they are accomplishing something and it drives them to do more. Whether you agree with the debt snowball strategy or not, the facts are that it does work.

Just Who Is This Dave Ramsey Guy?

2012-07-06T01:26:00.000-07:00

Who is Dave Ramsey? In case you are unfamiliar with him, Dave Ramsey has been teaching people how to get out of debt for some time now. On the radio since 1992, Dave has been teaching the masses how to take baby steps to gain financial freedom. In addition to the radio program he spreads his message through his Financial Peace University program, live events, and his books.

When it comes to what he teaches, some people swear by what he says, while others think he is some kind of fake. So, which one is he? I think you will have to make that decision for yourself.