Dave Ramsey

Something fun to keep you motivated is to calculate how much money you are saving by paying those suckers off.

 

between both my cars and all my credit cards it is about $600 per month just in interest.....

I am paying about $2,300 per month towards all of those debts which is about $1,000 over the minimums. I should have it all paid off in two years. Then I will have $2300 more per month to save or do whatever I want with.

 

2300x12=$27600. You could have some fun with that. Congrats man and keep it up.

 

First thing I plan to do when that money is freed up is to build my emergency fund that Dave talks about. Having no debt besides my house and having 6 months of expenses in savings would take so much stress out of my life.

I am currently renting a cheap house from my sister but once I get all this paid off and the emergency fund in place I am going to save up a nice down payment for a nice house that I plan to stay in the rest of my life.

 

His concept of not going into debt and saving money is truely groundbreaking.

 

kshead already beat you on this truly inspiring point in this thread.

 

It helps to hear someone say it to you though. It is kind of like going to church. You may not learn much you did not already know but it helps you do the right thing when you hear other people reinforcing it.

 

The Dave Ramsey get out of debt rental house, thats how you know your own the way to debt freedom. The emergency fund is the greatest thing. Once you get it built up, no matter what the emergency is, you will have it covered. It will take a lot of stress out of your life knowing if the car, the fridge or something of major importance needs repair, you have it covered.

This is a quote from Dave's site which really shows the importance of a emergency fund, I know Wolfpac can relate to this also...

"A good, old-fashioned Grandma's rainy day fund will keep you from going into debt when life hits you. Money Magazine says that 78% of Americans will have a major negative event in any given 10-year period. One is headed your way, so be ready for it. The reason you have the emergency fund is to prepare for the unexpected. When the unexpected happens, you will sleep more soundly at night and not sweat it during the day. Why? Because you will be ready."

 

The house belongs to my sister and is close to my parents house. I am paying less than $500 per month for rent. The house has 4 bedrooms and 2 baths. Since I am close to my parents, my mom keeps the two small children during the day. I pay her $100 per week to do this. Daycare for 2 kids would be much higher. The house is also a good bit closer to where I work saving me gas money.

The house is pretty humble and I would not want to stay in it forever but it meets our needs and is cheap.

 

Thats an awesome deal.