Bible verse: Keep your lives free from the love of money and be content with what you have. Hebrews 13:5
For those of you who don't know who Dave Ramsey is, you need to. He gives financial advice on TV and Radio. He is the expert on how to become free from debt.
Locally he's on the radio (106.3 FM) from 6:00-8:00 PM. Listen some time. You can learn alot listening to caller questions and hearing Ramsey's answers and advice. You can also call in or Tweet your own questions to him.
From his book, The Total Money Makeover, I'm going to list his 7 Baby Steps. Do these in the order listed and you're on your way to Financial Freedom!
1. Start saving an emergency fund of $1,000.
2. Pay off all debt using the Debt Snowball (This means that if you have several debts on credit cards, medical bills, student loans, etc.... start paying them off by concentrating on the smallest debt first, make minimum payments on all bills but that one and knock it out as quick as you can. Make the largest payment you can on the lowest debt and get rid of it. Then move to the next lowest bill. Do the same thing as above and keep going until you have all extra debt paid. Then don't charge anything else. Pay with cash only or a credit card ONLY if you are disciplined enough to pay it off IN FULL every month.
3. After you have accomplished the first two, then start saving 3 to 6 months worth of expenses, should you be laid off or lose your job. You could survive while you are looking for another job.
4. Invest 15% of household income in Roth Ira's or pre-tax retirement accounts, (ex. 401K, 457,403b)
5. Save College funding for kids
6. Pay off house early ex. make an additional principal payment each month, or refinance if you can get a lower interest rate.
7. Build wealth and give!
Invest in mutual funds and real estate
These are great goals and can be accomplished. Just start and go about it as suggested above. After you complete each step, you'll be encouraged and feel good about yourself. It just needs to be done in this type of structured way, so that you have clearly set rules.