A Degree in Money Smarts: Financial Peace University

Financial Peace University is a personal finance class created by Dave Ramsey, author of The Total Money Makeover. The FPU class is taught by Dave Ramsey via video and is offered in communities all across the country. It is an excellent class that teaches you how to handle all aspects of your money. Whether you are struggling financially or financially secure, this life changing program will improve your financial situation.

The class will teach you why you should avoid debt. You will learn Dave Ramsey's baby steps to financial success. The first step is to save a Baby Emergency Fund of $1,000 so you can avoid borrowing money for unexpected emergencies. The next step is to pay off all your debts using the Debt Snowball method. This method will have you list all your debts, except for your home mortgage, from smallest to largest. You will then make minimum payments on all the debts except for the smallest. You will attack the smallest debt will gazelle intensity using any funds you can accumulate to pay down this debt. Once it has been paid off you will then attack the next smallest debt until all your debts are paid off. This method does not take interest rates into account because Dave believes that personal finance is 20% knowledge and 80% behavior. Even though intellectually it makes more sense to pay off the highest interest rates first, emotionally it is more motivating to feel the sense of accomplishment gained from eliminating the smallest debts quickly.

Once you have become debt free except for your home mortgage, you will save your Fully Funded Emergency Fund of three to six months of living expenses. Then you will begin your retirement savings followed by saving for your children's college education. You will then pay off your home mortgage early and finally build wealth and give. The whole idea is that if you do not have any "payments" you can use all of your income to build wealth and give. Dave's motto is to live like no one else now so that you can live like no one else later. His ideas are really all about common sense.

The class meets once a week and runs for thirteen weeks. Each class is two hours long. The first hour is spent watching a video of Dave teaching about that week's specific topic. The next hour is spent in discussion about that topic with your class. Your class leader helps facilitate the discussion. You share your financial successes and struggles with each other and benefit from the accountability.

The thirteen topics covered in the class are Super Savers, Cash Flow Planning, Relating with Money, Buying Only Big Big Bargains, Dumping Debt, Understanding Investments, Understanding Insurance, Retirement and College Planning, Buyer Beware, Real Estate and Mortgages, Careers and Extra Jobs, Collection Practices and Credit Bureaus, and The Great Misunderstanding. Each class offers in depth information. Super Savers teaches the importance of saving money and living below your means. Cash Flow Planning teaches the importance of having a budget and how to put one together. Relating with Money teaches how to work with your partner to handle money. Buying Only Big Big Bargains teaches us how to negotiate to get the best deal on every purchase. Dumping Debt teaches the importance of getting out of debts and shows the steps for how to do it. Understanding Investments teaches all about stocks, bonds, mutual funds, CDs, annuities, and how to invest money. Understanding Insurance teaches about the different types of insurance we need including health insurance, homeowner insurance, car insurance, life insurance, and disability insurance. Retirement and College Planning teaches how to invest for retirement and college. Buyer Beware teaches us to recognize that financial products (debt) are continually being marketed to us. Real Estate and Mortgages teaches us what kind of mortgage to get and how to buy or sell a house. Careers and Extra Jobs teaches the importance of choosing a career you love. Collection Practices and Credit Bureaus teaches us how to check our credit report and deal with collection agencies. The Great Misunderstanding teaches us the importance of taking good care of the blessings we have received.

To find a Financial Peace University class in your community, log on to www.daveramsey.com and click on Financial Peace University. Once you find a class you will need to purchase a Membership Kit. The Membership Kit includes the Financial Peace University workbook, all thirteen lessons on cd, Dave's best selling Financial Peace book, and the FPU envelope system. The Kit is available on-line for $139.00 and may be available through your local FPU instructor for a discount.

Financial Peace University is entertaining and informative. It is a wise investment in your financial future. Follow Dave's advice and "don't be normal; normal is broke!" The Financial Peace University class will show you how!