Part of our goals for 2012 has been to eliminate some of the debt we have accumulated. We have a few credit accounts that we are tired of paying on, we both have student loans, and we even owe the IRS a little bit of money from self-employment taxes. So, we are working on living more frugally so that the extra money can pay off the debt. It can be overwhelming, but we’ve are pretty sure we are using the right system for us.
We have been reading Dave Ramsey’s Total Money Makeover. I won it from a giveaway back in January, and it has been a real eye-opener regarding finances. I have never been that good with handling my own money (and our debt reflects that), but since reading this book, I have come to realize that part of my poor financial health was due to believe several misconceptions when it comes to money and credit.
For example, when I turned 18, I remember thinking I needed to get a credit card so that I could start building my credit. Now, I realize that isn’t a good thing! You can do other things to build your credit – and you don’t really need credit if you follow Dave’s methods. You can buy every thing with cash, which is what you should do to avoid paying lots of extra money in interest and other fees. I wish Dave’s books were taught in high schools – that information would be much more value to me now than geography or calculus!
We are currently still working on building up our emergency fund so that we can begin putting additional money toward our debt. I am anxious to see what we can get rid of by the end of 2012!
Have you read any of Dave Ramsey’s books or used any of his methods? Were they successful for you?