need advice also wanted to know more about Dave Ramsey program

**nikip** · 08-09-2008, 08:28 PM

I read some info about Dave Ramsey. I am experienceing some financial problems and need a way out. He seems to have some excellent ideals. I wanted opinions. I work a job all commission and my hubby does not make alot of money but we are doing all we can to try to get out of this financial problems. He is in school now and working but we are still barly makeing it to pay the house and car etc. I want to go back to school online and continue working so that thing will get better when we both graduate do anyone have opinons on should we just wait on school altogether or should we stay trying to go to school for a better future so far just about everything is behind but we filll that if we keep taking jobs that barly pay anything we will never get out of this rut. Any suggestions

**jas** · 08-09-2008, 08:36 PM

Dave Ramsey is by no means a quick easy way out. Will it work? yes. Will it be hard? For sure.

There are many people on here that have been using DR principals and have great advice.

I just re-read the book over the last three days and am just getting going.

**Jamauk** · 08-09-2008, 08:51 PM

If you are comfortable with it, you could post your income/bills here and people will be able to give you better feedback.

If you are not comfortable with it ~ that's ok too.

Since DH is already in school, is it possible for you to pick up a second job until he finishes? Then you could go back to school once he gets a better job? Just a thought.

Welcome to the board, btw!

**Momof4cats** · 08-09-2008, 08:51 PM

How are you going to pay for school? I can tell you right now that Dave will say pay cash. Dave would also say to take care of the bills first, get yourself out of the rut, before adding on such an expense. I'm thinking the time spent in school would be of better use with getting a second job and paying things off.

**Greebo** · 08-10-2008, 07:41 AM

As Jama said - if you can post your current financial picture, that will help us understand your situation. Info needed:
- Income - amount and source(s)
- Monthly expenses - rent, groceries, utilities, etc.
- Debts - list balance, interest rate AND minimum payment
- Assets - things you own, home, cars, etc.

The Dave Ramsey plan is a no nonsense, no kidding around, no lying to yourself program of slash and burn economic correction. For people who are behind and sinking fast, the measures recommended are extreme but necessary.

The plan is a multi-year plan - usually about 2-3 years - of living like nobody else so later you can live like nobody else. It's a transition from out of control spending to financial peace. It takes hard work, dedication, and a complete change in how you run your lives.

What it doesn't take is a lot of smarts. Its simple, common sense steps, that are only hard because its hard to learn to say NO to our desires, even when its what we have to do to have any kind of reasonable future.

The elements of step 0 in the DR plan are:
0.1) Develop a budget
0.2) Go on a CASH ONLY basis - no more debt - but up the credit cards, etc.
0.3) Get current on all your bills
0.4) Stop the bleeding - get rid of anything that you can't (or couldn't) afford. Cars with loans on them, houses with house payments too high, etc.

Then you move onto the "baby steps" - which are financial steps you perform in order, one after the other.

1) Baby Emergency Fund - save $1000. Put it somewhere safe. It's not for pizza, its not for clothes, its for things like the tranny goes out on a car you need.

2) The debt snowball. List all debts in order of lowest balance to highest. Pay minimum payments on all but the smallest. Put every single dollar you can AFTER your basic needs are met (food, utilities, rent, transportation, clothing) to paying off that smallest debt. When that debt is paid off, apply the payment from that debt to the minimum on the next smallest debt. Do all you can while doing this to increase income and keep momentum going. This applies to all debts but the house, if you own.

3) Fully funded emergency fund: Save 3-6 months of income for emergencies.

There are 4 more steps, but they are downstream a ways for you, I suspect, so you don't need to worry about them yet.