Finding Financial Peace
I was scared and frustrated. I think we both were. We were living a pretty good life from the outside, but financially we had no idea what we were doing. I shared with you in the past that we were living paycheck to paycheck with quite a bit of debt underneath us, close to $30,000. We were considered “normal” with our student loans, credit card debt, cars and boat, medical bills and without a savings. We wanted a change, but just didn’t know how. Finding financial peace is what we were searching for.
By the grace of God we found an answer. We found a way to break free from the chains and make a future for our family. We were so thankful to find a Financial Peace University class right inside our home church. I want to share our financial journey with you in the hopes that you will find financial peace, too.
I am partnering with Dave Ramsey, to give one of my readers, a chance to win a Financial Peace University Membership Kit valued at $369. In exchange, we’ll be receiving Rachel Cruze’s new book, Love Your Life, Not Theirs. But before we get to what’s in the kit, let me share with you where our family is now.
Our Financial Peace Update
Dave Ramsey’s class consists of the 7 Baby Steps. The first step is to save a $1000 emergency fund. We had a little extra cash, but if we didn’t set a thousand aside, we would have blown through it quickly. This step has saved us a couple of times. We are currently on step 2, which is the debt snowball. This consists of putting all debts in order from smallest to largest, pay the minimal payment on all of them, except for the smallest. Put extra money into the smallest until it’s paid off. Then, use that payment money towards the next lowest debt and keep paying them off.
Will it Work for Me?
The one remark I always receive when explaining step 1 and 2 is, “but we don’t have the extra money to create an emergency fund or put towards debt.” We thought the same thing. So here is what we did. First, we created a budget. Every month (usually more often), we sit down and figure out where we want our money to go first. We know we need to pay bills, pay for gas and eat. Sometimes we need school clothes or go to the dentist, so we add those types of necessities in each month, as well. Then we add in the fun category. Everyone thinks you can’t have fun on a budget, but it’s not true.
After we created our budget for the first time, we realized we had more money left over then we thought and we were living way beyond our means. The next thing
we I did was prepare for a garage sale. I went through everything in the house and received donations from family and friends. With over a month of planning and local advertising, I made almost $500 at my garage sale!
With the $500, I negotiated with the collections company AND paid off our lowest debt. This helped us get our debt snowball rolling. Being a stay-at-home mom, it felt great to be able to contribute financially. Since October, our family has paid off close to $10,000 including a collections bill, student loan, hospital bills and a car. And for the first time in our lives, we are tithing with an open heart.
Our Financial Peace University class has been one of the biggest blessings for our family. Not only have we learned how to get out of debt (and stay out), we’ve learn other lessons, too. These include how to pay for cash for our car (never lease), when to rent and when to buy, the 15 year mortgage plan, what insurance we need (and what we don’t need), Roth RIA’s, 401k’s, college for our kids without student loans and so much more.
Dave Ramsey wants to bless one of my readers with a Financial Peace University Membership Kit. With this kit, you’ll receive everything you need for your local class to finding financial peace, including:
- Online Access to all Nine Lessons
- Member Workbook
- Dave Ramsey’s Complete Guide to Money
- Envelope System
- Budget Forms Folder
- Progress Poster
- And resources to help you along your journey
Use the Rafflecopter form below to enter. Don’t forget to stay connected with Dave Ramsey on Facebook, Twitter, Instagram and Youtube for financial tips, resources and discounts.