Sunday, August 20, 2006
How Dave Ramsey changed my life (future prediction)
I've been reading Dave's budget book all weekend. I was hoping I'd find the Easy-Mac version of becoming a millionaire, but damn, I guess there's not one. Short of winning the lotto, which I'm to cheap to play.
Seems that we need to jump on the debt snowball. Only our snowball is bigger than our house. Mark and I have decided that we need to do something about the debt. Restructure the debt, because it ain't going away. After reading through most of Dave's book, I decided we'll probably do what we intended to do originally. Refinance our house, for about 3 years extra. I'm looking for advice; tell me what you think. We have two car notes, that when added together, almost total our monthly mortgage payments. These notes are never-ending because Mark and I put so many miles on our cars that we trade them in fairly quickly. Our goal is to stop doing that. Roll these into our mortgage, along with other small debt that we have (a couple of credit cards), and finance for 15 years (on our original 15 year mortgage that was down to about 12 years). I hate to add the three years, but it would free up about 900 bucks a month, which we desperately need for GAS! and to start saving. Our savings is basically non-existent. Dave isn't real clear cut on whether or not he agrees with this. Basically, we'll have equity in everything and still some in our house, but not as much as we currently do.
The most important thing, as Dave stresses in the book, is to change our spending habits, to
prevent incurring further debt. And that is what I'm determined to do.
No more ordering clothes and deferring payment hoping the deferment fairy will leave a shit-load of money on my doorstep.
No more overdoing kids' birthdays and Christmas.
No more vacations we didn't budget for (like this year's!)
No more eating out every single work day (I ate in 3 times last week!)
No more living like we're well off when we're barely scraping by.
Time to face reality, dig in and change our ways. Wish me luck.
I'll need it.
Posted by Renee