baby step 2

Getting rid of debt Dave says begin with your smallest debt and begin to pay it off, paying minimums on everything else first (provided you are current on all your bills, if you are not get current first.) Allot an extra amount a month you can afford to add to this debt. If you must, work an extra job, sell something on craigslist or ebay, have a garage sale. Anything extra should go to this. Suggestion: have a car payment that is 25% or more of your bring home pay? Save up some money, buy an old car with cash if you have one car, if you have two and are able to sell one, sell your most expensive car and pay off that debt. That will give you 25% more to put towards your other debt. Then start a fund for a car replacement.

TAX TIP

GIVE GIVE GIVE When you give to a charitable organization or donate items, you receive tax credit up to givings equalling 5% of your yearly Gross Pay. (which is the amount before taxes). If you have an old car you are planning to trade in, think of donating it instead. You may only get a few thousand for your trade, but you can claim the full value of the vehicle on you donation, and you will be helping out someone without a car. If you have clothes or toys you are going to throw out, give it to a thrift store or a local shelter, you can claim it as well, just remember to write it down.
Remember a closed fist cannot receive anything back, but an open hand can give and receive equally.

scared to have cash

Many people are scared to follow Dave Ramsey's advice and start carrying cash. They are scared to have $1000 liquid cash in their home, thinking someone will break in and take it or rob them of it. People, no one knows you are carrying cash except you. Also, if someone is to break in your home, you should want them to only take cash. People are foolish to think it is better to have credit cards or check books taken. Banks have given a false sense of security that if this happens, your money will be refunded to you. This may be true, but in the meantime, you have bounced checks, overdraft fees, ruined credit. An affidavit of forgery must be filled out before any of this is restored and this may take years to fix your credit (if it ever does). Plus you run the risk of further identity thefts. If cash is taken, it can still be refunded to you. A simple police report and a call to your home insurance provider can take care of this. Then that's it, no other fees or feelings of fright because a stranger, a theif knows your name. Save yourselves the trouble, buy a safe, bolt it to the floor in your home out of the way and lock your things up. Reinforce your home security by installing a "texas deadbolt" (which goes deep within the door frame, that way if someone is going to kick your door they have to kick in the whole frame) Install an audible alarm (don't bother signing up for monthly alarm service, in six minutes you'll be cleaned out and the police won't get there any sooner and the damage will be done). Lock all sliding glass doors and reinforce them with a bar to keep them from sliding open. Keep all ladders unavailable to upstairs windows and keep your hedges cut down low. Purchase flood lights set on motion, an inexpensive camera system at your front door would be nice. You can get one at Lowe's or Home Depot for as little as $100 dollars. A case is more likely to be solved with id of a theif. Probability of the theif being known to the police is high and many times they are recognized by the Investigator, and often times, even by you.

the cable monster

Cable - A "utility"? Unneccesary in this day of the internet. Cable can run out the roof expensive. Try to unplug yourself. Start by simply reducing your costs, or go cold turkey and cut it off completely. It can save you hundreds of dollars a year. There are many shows that you can watch on the internet for free. At www.hulu.com, there are tons of episodes, extra clips, movies to watch. Youtube is also a good site. Watching an episode here and there off the internet and cutting yourself down to DVD's or old VCR tapes can make a world of difference.
Our cable bill was $66 dollars a month; basic expanded cable, plus internet, cutting the cable at $40 dollars and only paying $26 for internet, I will save $480 this year. If I were to go real cheap and cut our internet, or change it over to dial up, I would save $792 this year.

Learn to balance your checkbook

In the day of Debit cards and automatic transfers, learning how to balance your checkbook is a must. Many believe that online banking has replaced balancing your checkbook but contrary to this belief, it is still an important role. Writing down you starting balance at your next pay, automatically subtract all automatic drafts you may have during the month, including bank charges and fees, then continue to subtract and write down any debits, cash withdrawals, atms and fees. Never let it get past zero.

Baby Step 1

Dave's baby step one: Save $1000 emergency fund (if you make less than $20,000 a year, save $500) make this a liquid fund, which means make it readily available. It may take a while to build this up, that's ok. It will save you in the long run. Never use credit cards for this, emergencies on credit cards turn in to excuses to live beyond your means.

Money Tip

Pay your car insurance in full instead of monthly, you will save yourself money in the end.

If your car insurance is $703 every six months and you pay $125.00 every month plus convenience fees, you will end up paying $750 plus those extra fees instead. If you have a convenience fee of $3 a month you will have a savings of $83. Thats $166 a year. What could you do with an extra $166 dollars?

Member of Generation Why

Everyone has the cool generation except mine. There's the baby boomers, the generation x, and then there is mine - generation Y which really should be generation why. It seems everyone I talk to was an accident, un-loved or not shown love (why me why me) I'm owed so much, my mommy and daddy separated and I just cant take it... let me give my child everything so they will never want for anything. Troubled american society... we are losing our children America, not because of anything our parents did but what we are doing. We are teaching them to live outside their means, spending more than they have (like the US Government does), when they are out of a "good job" we give them economic stimulus with money we dont have to give them just so we feel better about our economy and will spend more money that we dont already have. There are illegal aliens in this country who get up every day go stand in line to do what? WORK. not stand in line for hand outs at our local food banks, but work. Americans, our generation is ruining things. We teach our children that they can have whatever they want (and show no respect while they get it) and we are getting into debt to do it. Generation Y, I work where everyday I get reports from elementary schools where gang activity is going on, gangs in elementary school, it is popular to take what you want no matter whom you hurt in the process. They have handbooks on gangs they pass out to these kids, HISTORY OF GANGS, they are books that our children read! Take back your children. Teach them the value of a dollar, teach them respect and love. Dont whine that you didnt have anything or the love you needed to be a good parent, forget generation why and teach our generation X's a thing or two about a life of commissions, not allowances. Teach them to work, earn their money, spend only what they make, never take from others. Train up a child in the way he should go and he shall follow in your footsteps.

Tax Tips

Tax Tip one: Write everything down! Save every receipt. When you begin to keep an accountability log, you know where your money goes and if you get rewarded for it through your deductions. Keep a log in a journal notebook. Write down every doctors bill, mileage to go see your doctor, prescriptions, charitable givings (including items donated), items not reimbursed for your work, mileage traveled for work not reimbursed (except your normal daily drive), cell phone bills and home telephone bills if required for work and not reimbursed, (basically anything required that they dont pay you for), tax preparation and books about taxes, health insurance premiums, and day care expenses.

Starting The Dave Way

When I got married, my husband had debt, no I mean serious debt. It was now up to me to try and fix it. At 22 you haven't a clue about money, so I tried everything, including getting into a lot of debt to try to pull us out. Five years later, a three year old later, thirty two thousand down, and sixteen thousand back up, I found Dave Ramsey. I'm on my way to losing my debt. I must live a life of accountability, every dollar accounted for. I have started a budget and am sticking to it. In my first month with Dave, I had saved a thousand dollars for emergencies, no credit cards for emergencies but cold hard cash. I had saved another 1500 for when I knew our money would be tight. Now here I am, going on a journey of money redemption, please join me. Check out Dave on his website, you'll find it in my supported links, it will change your life.