Advice: "Listen to what Dave Ramsey says. "Debt is dumb. Most normal people are just plain broke because they are in debt up to their eyeballs with no hope of help. If you're in debt then you're a slave, in the sense that you do not have the freedom to use your money to help change your family tree. According to a recent USA Today article about debt, 78 percent of baby boomers have mortgage debt, 59 percent have credit card debt, 56 percent have car payments. It takes a lot of will, discipline, courage and help to slay the debt monster." Below are his "Baby Steps" on the road to financial freedom.
* $1,000 to start an Emergency Fund
* Pay off all debt using the Debt Snowball
* Three to six months of expenses in savings
* Invest 15 percent of household income into Roth IRAs and pre-tax retirement
* College funding for children
* Pay off home early
* Build wealth and give! Invest in mutual funds and real estate
This is tough teaching in today's "get it all right now society" but I believe if we can follow his advice, it can lead to a new kind of freedom.
2 comments:
My wife and I are on our way to a Crown Ministry meeting as I type...
Good post! So true.
Wow - a wireless internet connection in the car. Impressive. :)
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