ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Dave Ramsey's Total Money Makeover: Debt Free Living

Updated on July 10, 2017

Dave Ramsey's Method to Debt Free Living has Worked for Millions!

Dave Ramsey is a financial expert. He became serious about debt free living after having to file bankruptcy years ago. He is now debt free and shares how he was able to do it by following these 7 steps to living debt free. My son and his wife took the Dave Ramsey classes and became debt free in as little as 3 years. They followed his advice to the T and it worked. But it didn't come easy.

It took more than just following the 7 steps listed below. It took hard work. They had to cut corners. They had to stick to their budget. They paid off credit cards, cut them up and threw them away. They paid off 2 new car payments, set up their emergency fund, and now they are saving money for their first house and giving to charities of their choice.

Follow These 7 Baby Steps to Become Debt Free

  • Save $1,000.00 and try not to touch it! This is your emergency fund.
  • Use the debt snowball method to help pay off your debt. Start by paying off your smallest debt first. There's a reason for this rather than starting with the highest interest rate debt and it's called enjoying success. Your hard work is paying off. When your smallest debt is paid take that payment and add it to the payment you're already paying on the next smallest debt. Pay this one off and start on the next.
  • Work on setting up a fully funded emergency fund by saving enough money to pay 3 to 6 months expenses. Reaching this goal is an important step to avoid disaster in case of a job loss.
  • Put 15% of your income into a retirement fund. For younger folks, becoming debt free before saving for retirement is a suggestion. It is certainly not set in stone as each person's finances are different.
  • Begin budgeting for your children's college tuition.
  • Pay off your mortgage early or begin saving money for your first house. This is where my son and his wife are in the Dave Ramsey debt free living strategy and they've only been married 3 years.
  • Build wealth and give generously. Investing in Dave Ramsey's course to learn about investing is something you may want to do. Attending his classes is even better. That group effort really works. Giving generously may sound like a tough goal to reach. You may be surprised how easy it is though when you are debt free.

Source

Budgeting Tools to Help

After setting up your $1,000.00 emergency fund set up a budget. Begin setting money aside from each paycheck for Christmas, auto repairs, travel and vacation expenses, dental and medical visits and any other expenses that you know will come up during the year. Rather than using a credit card for these expenses, budget for them.

Budgets and other forms can be found in the back of Dave Ramsey's book Total Money Makeover and online. You can download the budgeting form from his website above.

Dave Uses The Following as a Road Map to Financial Freedom

Source

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)