I think one of the best weapons I can put in my arsenal to fight my debt is to educate myself on the different methods of tackling debt and creating a smart personal finance plan. Of course I started off with No More Havard Debt, but last night I read up on some of Dave Ramsey’s methods and today I was reading Frugal Dad because I felt skeptical about some of Ramsey’s baby steps.
Of course, I have mentioned how I have somewhat adopted Dave Ramsey’s cash envelope system. I was reading his baby steps methods last night and went to bed thinking about them and how they would actually work in my life. I definitely agree with baby step 1, which is to build an emergency fund of $1000, something I need to do. But, if you lived where I live, you would know two things: one, 1k would barely cover half of your (comparative to others modest) mortgage, and two, the drivers in this area require you to always have your insurance deductible readily at hand. So, if I and my fiance were to suddenly lose our jobs and I and/or him were to hit someone (or someone hit me, which has already happened twice in 8 months….), we’d be up a certain creek in a matter of days. I personally agree with what most people say, which is to build 3-6 months of back-up money. But, considering my current financial situation, I’ll build up the 1k and go from there. Hopefully by the time my wedding rolls around, I’ll have a better egg laid, but as Dave Ramsey puts it, “Baby steps.” Ramsey goes onto six consecutive baby steps to eliminating debt and building wealth. Right now, the journey for me is eliminating debt, I will worry about building wealth some other time.
Frugal Dad is an interesting read on Dave Ramsey’s steps. His main point in the post I read is that you can’t just blindly follow some “guru’s” advice because everyone says it works for them. You have to develop your own method of tackling debt and building wealth. I’m more inclined toward the Frugal Dad’s baby steps order (which of course were inspired from Ramsey’s). Frugal Dad is just a great website period, I recommend it for people who need ideas and information regarding personal finance.
Also, I like to look up financial planning and money tracking ideas on Pinterest. I found a pin from The Nest Effect that included ideas on how to create a personal finance folder. She created templates for different items, and I’m admittedly scamming off her ideas! I started creating templates last night to create a personal home management journal, because while her templates are cute and super appealing to me, they cost money to buy from her and I’m perfectly capable of opening my word processing program and making some myself for the cost of my personal time. Heck, if I can make them look nice and pretty, and think of original titles so that I’m not sued, I’ll put them up for free! Help ourselves to better help others. Or, I’ll try to find some printables somewhere else online that are free, at which point I’ll link them.
I plan on continuing to read up on personal finance and debt management while I continue on this quest to hopefully expedite the process some. I have no great words wisdom or earth shattering ideas that will eliminate my debt in a matter of months, but like all things in life, it will come with time and patience.