So, one of the coolest things The Mister and I have done together is take Dave Ramsey’s Financial Peace University class through our church. Not only is it financially sound, it forces us to work together on budgeting, writing bills, and expenses. Finances…together. As my girl Martha would say, it’s a good thing.
Anyhoo, the basis of the class is his baby step process of getting out of debt. This class is good even if you don’t have debt, it’s nice to start off a marriage with the same idea of asset management. Plus, if you’re like us, we cleaned out our savings for the wedding and honeymoon, so regaining that loot is a big part of the plan. Here are the steps:
- $1000 in an emergency fund. That way, when life happens, you won’t be thrown off of your saving/getting out of debt plan.
- Debt snowball. Attacking your debt, one at a time, from the smallest to the largest. Pay off one debt, then once it’s paid off you can use that money to pay off the next. And on and on. Another way to help pay off the debt: get another job! That’s a bummer, but Dave says that if your actions have gotten you into a financial mess, then your actions have to get you out. Income is huge for this step.
- 3-6 months of expenses. Think about all of the folks who’ve been foreclosed on or lost their jobs or whatever other awful things can happen to people…what if they had that money in the bank? That’s a heck of a lot of money though, so we’ve got some work to do!
- Invest 15% in retirement accounts. These baby steps are meant to take place one after another. Meaning you’re not supposed to be investing while you’re getting your emergency fund together or working your debt snowball.
- College funds. Save for your kids’ future so that they don’t have to go into debt just to get an education.
- Pay off your house early. If you’ve got a 30-year mortgage, switch it up to a 15…then pay it off early!! (Yippee!)
- Build wealth and give. Dave is all about making money and getting into a completely comfortable, stable, and well-off place in life. But not just to brag about it, but to better your family situation…then better someone else’s! Like the Bible says: give and it will be given to you!
Have you guys done anything like this with your hubby’s? Will it effect how you spend for the holidays?