Hubby and I started taking Financial Peace By Dave Ramsey at a local church. We love the course so much, now that we have started implementing the knowledge, we will be sharing Financial Peace Takeaways Weekly with you.
Financial Peace Takeaways
First and foremost, if you have a chance to take the course when it becomes available, I highly recommend it!
Nothing better than having access to the lessons and tips straight from Dave Ramsey and his team.
What I will be sharing are some of my takeaways, some of the adjustments I’ve made and bonus worksheets, if you’re like me and you are not crazy about syncing your bank account to an app or just want to be able to customize things.
Let’s dive into Baby Step 2
Baby Step 2
Financial Peace Baby Step 2 is to pay off all your debt except your house, using the debt snowball method.
You’re probably wondering what debt snow ball is, right?
Well, you start with the smallest debt and make minimum payments to other debt you have and go gazelle intense until you pay that (smallest debt) off and move to the next.
The key is that for example, you had 400.00 in monthly payments to debt, once you pay one off, you allocate that payment to the next debt, to move faster down the line.
My take on it is that I’ve been doing that, but sending 10/30.00 to the other debt accounts and an extra payment to the principal to my car loan.
The deal is, if you only send minimum payments, sometimes you end up with a higher balance on the account even if you didn’t use it, so sending an extra 10-30.00 per account, makes a difference.
He says to put a hold on savings until you pay off debt, but I don’t want to miss out on compound interest, so every single dollar of unexpected income, for example, from blog work, I put aside into my savings account.
I think that to be concerned about debt every month sets your mentality into scarcity mode, so as soon as I get a large client payment, I send the payment to the credit cards, just making sure our weekly basic needs are met.
That gives me peace of mind to focus on new projects, prosperity and abundance.
I’ve also created a debt snowball worksheet, which I update monthly along with my expenses, because it’s great seeing those debt numbers go down!
You can check it out here:
I also use a daily expense planner to track my expenses and income each day and the payments will get annotated in there to ensure all the payments were made before deadlines.
I love the name! Abundance Planner!
Click HERE to check it out.
I have another piece of advice, forget about how large your debt is, just focus on the process and trust it will work out! Just have faith!
The true freedom is when you have no debt!
Not ready to start the Baby Step 2? Save this post for later:
I can’t wait for you to tell me you started your journey to Financial Peace and how much debt you paid off!
As usual, give us a Trendy Shout!
Just thinking about doing my own finances stresses me out, but this sounds fairly straightforward. Thank you for the insight!
Finding financial peace is so important. We just got out of debt after years of the burden. So liberating!
This looks like a great and interesting course. I will have to check it out.
Interesting thoughts on financial peace! May give some food for thought~
Thanks for sharing this useful practicing finance tips here, it’s a good suggestion to ensure saving at the same time too. Cheers Siennylovesdrawing
With the current economic situation, we definitely need to get on top of our debts. These are great tips and look forward to taking the course
It can be hard for people to not get into the cycle, especially snowballing. So many people rely on credit cards to get by which isn’t something every month. Thank you for sharing this insightful info
I know a lot of people who could benefit from reading this. With the uncertainty of inflation and what the future holds I know so many are depending on credit cards and loans which is so dangerous long term. Thanks for sharing about this.
I’ve heard a few people talk about debt snowballing. Sounds like a great course which will be needed by many during these difficult times for sure.
This sounds such a great course and one many people could benefit from with the current cost of living and everything becoming more and more expensive. Any help to reduce debt
Great information! I currently don’t have any I need to work on, but when I do I will keep the snowball in mind.
This sounds like a great course. I’ll have to look in to this. I’m sure it will be really helpful.