Last week I shared some quotes and reviewed The Total Money Makeover. I mentioned I would go through the baby steps, but before that I wanted to share a success story. Throughout the book, Dave shares these stories of people from different walks of life who have successfully gotten out of debt as a way to motivate. Here is one of my favorites:
I think I like this story because I can sort of relate to it. When I see something I want [which is a lot of things] it consumes me until I get it. I can't WAIT and I just have to have it. The concepts of this book have taught me to wait on those wants. The baby steps changed my attitude and taught me discipline. Like this family I know it has helped our communcation especially when it comes to finances.
So, are you motivated? The baby steps are simple, but it takes dedication and discipline to follow through, especially with the debt. Here are the baby steps:
1. Save $1,000 to start an Emergency Fund
2. Pay off all the debt using the Debt Snowball
3. Finish the emergency fund saving $3,000-$10,000
4. Invest 15% of household income to Roth IRA's and retirement
5. Save for the kiddos college
6. Pay off home early
7. Build wealth, have fun, and give!
You can find a more detailed review of these steps at here at Frugaldad.com and a slight alternative to the plan.
I know money talk is a taboo issue but like I said in my post last week, I want to share this book because I am so thankful someone shared it with me. Even if it helps one person who read this to get financially fit, it was worth sharing.