I'm not one to hide the fact that Frank and I have debt. We know exactly how it happened. We just weren't smart when we first got together. Surprisingly though, before we did start dating we both were doing okay with our money. I guess that fun stage really hit us hard! It also doesn't help when you move across the country and then make 4 cross country trips in 2 1/2 years.
In the past we're tried different "plans" to get us going in the right direction, they just don't seem to stick. For a few years now I've heard of Dave Ramsey and how much people loved what he had to say. For some reason I never gave him a second thought. About a month ago I decided to go look through his website to see what he had to say. I was hooked. One of the things I loved is that he reminds you over and over that getting out of debt is not easy! And it is not fast. I hate when I see advertisements to get out of debt fast, I know there is a catch to it.
Right now we are starting with Dave's snowball effect. The first step is to get $1,000 into savings. Seems easy right? Why on earth for us it's a challenge I'll never know. It seems whenever we get a good amount in there an emergency of some sorts comes up and we have to go to dip into savings. I'm praying that we can get through with this step soon. It's driving me crazy. The next step in the snowball effect is paying of debt. This is where are 3 year plan comes into play. We hope to have both our credit cards paid off and to pay my mom back. I also hope to have most of the truck paid off, but I'm not sure if it will happen.
In order to help us even more we are doing the cash to envelopes system. In a way we've been doing this for a long time, just not in the proper organized way. When you sit down and start giving every dollar a "name" you realize just what you are really spending your money on. It's a little sad if you ask me. This coming pay check with be our first time with the cash to envelopes so we're hoping it goes okay. We both know it's going to take a few months to figure out how much to budget for in each category, but we are really determined! There's no reason why we have to carry this debt around with us forever and just add on to it. We'd much rather have financial freedom and no worry.
I know there are a few bloggers who use Dave's methods, so...
What do you think of them? Have they helped you and your family?