Jones and I have made the decision to do Dave Ramsey’s Total Money Makeover, but what next? Furthermore, I don’t want this to be something we start and don’t finish. We cannot afford to continue making bad financial decisions. As our earning years diminish, we need to maximize our resources. We’ve got to keep it moving in the right direction.
Money doesn’t grow on trees nor does it fall from the sky. It takes hard work to earn it and it will take hard work to manage it. Darcy Jones
Another thing to think about is this: The family conference call is Sunday, August 4 at 5:30 PM. I’ve been doing all this talking, texting, and exhorting about the Dave Ramsey Total Money Makeover, I’d better have something to show for it by the time we all connect. I’ll need to report some kind of progress on me and Jones’ money makeover. In the meantime, here are five steps you need to take to get your money makeover started. They worked for me and Jones. Tweak them to fit your family’s needs
1. Read the book.
Buy it or borrow it from your local library. If you don’t like to read, catch the Dave Ramsey Total Money Makeover videos on YouTube. You really need to get a good feel for the Total Money Makeover. You need to understand Dave Ramsey’s philosophy and what he wants for you. You also need to know why he is so passionate about the Total Money Makeover. And, the case studies provided tell you about real people who have worked the plan and how the plan worked for them. Their stories inspired me to get started. Here are two videos to get your started. Dave Ramsey’s Budgeting Money Makeover and Dave Ramsey’s Baby Steps Money Makeover. Just click on the links provided and get to work..
2. Organize your bills.
When I got the bills organized and listed them all on paper — I was amazed. Amazed at how much debt we had. Amazed at how much money was going out the door and how little was coming in to compensate. We were nickeling and diming our financial future away.
3. Take a good look at your income.
You need to know exactly what’s coming in as well as what’s going out. Find extra money if you can and put it on your debt! It’s tempting to splurge found money on some pricey new toy, but don’t do it.
4. Get caught up on your payments.
It’s important to start off on the right track. You need to be up-to-date on payments to all your creditors. If you are having a problem with this, think about what you can cut to “find” money. I decided to cut out my gym membership. I’ve only been to the gym two or three times in the last two years but I’ve been making regular payments of $34 a month. That’s $816. Those were expensive visits. Besides, Jones has a family membership to the YMCA. I can always go there.
The other thing you need to do is this – stop borrowing money. It took me a minute to get what Dave Ramsey meant by this. My first thought was that I rarely, ever borrowed money – maybe a few bucks from Jones, but that was about it. Then I got it. He meant no credit cards, no loans, no nothing that I could n’t pay cash for. Now that’s a paradigm shift. I’m still working on that one.
5. Create a budget.
Tell your money where you want it to go. You can do that with a budget. Otherwise, it just goes and at the end of the month, you are wondering where it went. Then, read about the Debt Snowball or find it online. Plug your data into the free trial to find your debt free date. Jones and I did and we were pleasantly surprised. Our debt free date was closer than we imagined.
These five steps will get you started on your money makeover. Use the work sheets in the book to help you get moving.
Read to Learn said, “We will all start the journey from a different place, but the destination is the same – financial freedom.”
Every dime counts.