The Happy Nappy Bride

About weddings. About relationships. About the first year of being married.

Coupledom: The Financial Peace Edition December 2, 2010

Filed under: Building a life — Happy Nappy Bride @ 2:47 pm
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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:

  1. $1000 in an emergency fund.  That way, when life happens, you won’t be thrown off of your saving/getting out of debt plan.
  2. 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. 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!
  4. 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.
  5. College funds. Save for your kids’ future so that they don’t have to go into debt just to get an education.
  6. 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!)
  7. 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?


8 Responses to “Coupledom: The Financial Peace Edition”

  1. jameil Says:

    I think about stuff like this all the time. No. 1 is done. No. 2 is next. No. 3 is a part of no. 1. I’m stackin! No. 4, requirement at all jobs. I’m not trying to be working until I’m 65 or even 60 maybe. At least I don’t want to HAVE to work. Let’s say that. No. 5. We’ll cross that bridge when I get married but that’s definitely a necessity. 6. CAN’T WAIT TO BE ABLE TO DO THIS!! 7. Ditto!

  2. Frugalista Says:

    very great tips! We have our E fund. like you we wiped out the savings for the wedding and so the 3-6 month expenses is going to be a long time coming!! All of these steps would be so much easier if my salary could say….double.

  3. I have a personal savings account which will more than likely transform into our e-fund. I have an ING account as well that I had to draw down for the wedding and so am rebuilding as well. And we now have a joint savings account that I divert money to twice a month. I am working contract right now and we have a lot of extra money because of my rate so I am trying to sock away as much as possible.

    3-6 months of living expenses is my next goal. Plus we are thinking about selling my house which is another discussion all together.

  4. What a great list. We are well on our way with number 1, but just really starting number 2. As for retirement savings we have the typical, but during my husband’s open enrollment for his job, I signed us up for the stock options too. As for number 6, we are in the process of selling out house and moving into a condo, which will allow us to pay off 80% of our debt and considerably reduce our monthly expenses.

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