Dead on the money Jeff.My old man always told me " It don't matter how much you make boy its how much you get to keep ! " Now at age 45 and with the ever present threat of more and higher taxes I see how right he was once again.Sometimes I wish I could go back in time 20 years and run into to myself and just slap the h$#l out of me !
Well I fell on my face before but I stopped that cycle, it's funny, alot of people think I rub this in their faces when I talk about debt, it's the absolute opposite... you don't see anything I have that is not paid for, I have very basic stuff, a very normal house, very normal practical cars, I do have toys but I saved up to get them and paid for them all with saved up cash money that I earned, I like for others to experience the joy of not worrying about if they get cancelled or an unexpected car repair comes up, be capable of taking a trip anytime you want, just go... not having to worry about how the bills will be paid next week...
Here's the process:
From Dave Ramseys Website
http://www.daveramsey.com/new/baby-steps/
Baby Step 1
$1,000 to start an Emergency Fund
An emergency fund is for those unexpected events in life that you can’t plan for: the loss of a job, an unexpected pregnancy, a faulty car transmission, and the list goes on and on. It’s not a matter of if these events will happen; it’s simply a matter of when they will happen. Learn more
Baby Step 2
Pay off all debt using the Debt Snowball
List your debts, excluding the house, in order. The smallest balance should be your number one priority. Don’t worry about interest rates unless two debts have similar payoffs. If that’s the case, then list the higher interest rate debt first. Learn more
Baby Step 3
3 to 6 months of expenses in savings
Once you complete the first two baby steps, you will have built serious momentum. But don’t start throwing all your “extra” money into investments quite yet. It’s time to build your full emergency fund. Learn more
Baby Step 4
Invest 15% of household income into Roth IRAs and pre-tax retirement
When you reach this step, you’ll have no payments—except the house—and a fully funded emergency fund. Now it’s time to get serious about building wealth. Learn more
Baby Step 5
College funding for children
By this point, you should have already started Baby Step 4—investing 15% of your income—before saving for college. Whether you are saving for you or your child to go to college, you need to start now. Learn more
Baby Step 6
Pay off home early
Now it’s time to begin chunking all of your extra money toward the mortgage. You are getting closer to realizing the dream of a life with no house payments. Learn more
Baby Step 7
Build wealth and give!
It’s time to build wealth and give like never before. Leave an inheritance for future generations, and bless others now with your excess. It's really the only way to live! Learn more
I am proud to say I am on Baby Step 7!