A couple things I learned from Dave Ramsey's The total money makeover:
1.) Marry someone who loves numbers, and enjoys taking care of the budget!(thanks honey!)
2.) Do not display your love for eachother for all 10,000 people to see at a christian financial conference. It's just plain weird!OK, really here are some key points to remember (BABY STEPS)
1.) Get 1,000 to start an "Emergency Fund"
"68% of Americans could not cover a 5,000 emeregency with cash without having to go into debt for it."
2.) Pay off all debt using the "Debt Snowball" from smallest balence to the largest to help keep you motivated and stay on track. Every time you pay a debt off, you add its old minimum payment to the next debt in the snowball.
3.) Build 3-6 months of expenses in savings. (use money markets b/c the often had no penalty for early withdrawals, and have check-writing privileges)
4.) Invest 15% of household income into Roth IRAs and pre-tax retirement. "It has been said that Albert Einstein called compound interest the eighth wonder of the world" $100 a month from age 25 to 65 at 12%= 1,176,477!
5.) Prepare for college funding withe an Educational Savings Account funded in growth stock mutual funds. The average college student graduates with $42,406 in student loan debt. We just paid ours off this past year!!
6.) Pay off your home early
MYTH- It is wise to keep my home mortgage to get the tax deduction
TRUTH- Tax deductions are no bargain!
Best option is a 15 yr fixed, and payments should be no more than 25% of your take home pay.
example: a $200,000 mortgage at 6% interest
30 yrs: you pay back the loan amt, in addition to $231,683 in interest
15yrs: you pay back the loan amt, in additioan to $103,797 in interest
cash: you pay 0% interest (wouldn't this be nice!)
7.) Build weath and GIVE
"No one would remember the good samaritan if he didn't have money" Margaret Thatcher
I would highly Dave Ramsey books/events to EVERYONE!! They have a great children/teens series also. If you are thinking about getting married or engaged, this is a must!!!
1 comments:
Hey Rashel, we were totally at this SAME conference!! Actually, it was my 2nd Live event and I was with my sister-in-laws (Tim and had gone to one about 6 months earlier in Grand Rapids). This has totally changed our lives! So glad you guys were able to attend (and loved it!)
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