Dissing Debt-Fast Money

Baby Step One in Dave Ramsey's plan is getting $1,000 quick fast and in a hurry. 'Gazelle Intense' Dave calls it. Do whatever you can to get $1,000 ($500 for young adults and teens). Some people sell all that they don't use and some sell their skills. Come on, do you really need boots with fur in Florida? If you are done having children, sell those out grown clothes, and furniture. My parents moved from Michigan to Virginia and gave away over 8 winter coats. Ummm, that was lost money! Can you sew? make a dress for someone. Get the money, get it fast and get it secured!!! That is the beginning of your emergency fund.

Hubby and I were the kind of couple that kept building savings, but not paying debt. That isn't the smartest idea. I had $1000 in credit card debt with $2000 in the savings account just collecting 1% interest. What was I thinking? If you are like me, put aside the $1000 for the emergency fund, and use the rest to pay your debt. Now, don't go cashing in 401Ks and mutual funds. I am referring to a plain ole savings account that held onto my money.

I have a coworker who is trying to get savvy with her money in 2016. I applaud her because she needs to. Her 3 children rely on her to make the best choices with what she has. They are also learning from her. They see that a new handbag comes first and then the light bill, for example. That's the wrong lessons to teach. During this transition, parents should not keep financial secrets from there children. Say out loud that "I can't get those burgundy jeans until I get my $1000 savings and then pay down my Sears card." They will first learn that it's OK to be strict with yourself, then second that there is a prize at the end of each struggle. For those that do not have a spouse or children yet, these lessons will set you straight before that phase of life comes your way.

One question that I have received was how long should it take me to get $1000. Some people can get it in a month and others will take a few months. Keep paying your bills, but cut extra spending where ever possible. There's no time limit, it's only the tensity that matters. If you aren't moving like you're in a hurry, then your not and that's the problem. Dave said it's your MENTAL that's the problem, not your bank account folks.

Once you get the money, don't spend it. Place it in an unreachable place. Dave Ramsey recommends a mutual fund, savings account or in a picture frame. Its for emergencies and guess what? Life will dish out one and having $1,000 to put towards it will make life a little easier.

Get gazelle intense, and get your emergency fund started.


Above is the video of each of the 7 steps. Watch it and then come back to each week to learn how to implement his plan and get some tips. You can also follow the link below to watch it.
https://youtu.be/bU7HEIs3IWw

Comments

Popular Posts