How the Total Money Makeover Changed My Life!!

I needed a change in my life. I was twenty five years old and swimming in a vast sea of debt. Then one day someone gave me a book to read. At first I was skeptical as anyone would be on the "self-help" books. But this book proved me wrong and turned my life around within a year. The "Total Money Makeover" changed my life and this is how.

Dave Ramsey has written a proven success model for getting your financial fitness in order. The "Total Money Makeover" is a step by step plan to guide you to financial stability. Dave teaches us through his book how to eliminate debt and put away savings in record amounts of time. This sounds crazy, but the principles are solid and as long as you stick to the plan...you cannot fail.

The first step to financial security is creating a emergency fund. This money is set aside for emergencies only. Not for vacations, or want items. It is simply for emergencies. Dave teaches us that we should have an amount that is equal to at least three to six months of our income put away in the bank. This acts as an emergency fund if someone loses their job or a major emergency would arise. This will ensure that if anything unexpected occurs, there will be no need to use a credit card or take out a loan-putting yourself further into debt. So many people are using credit cards for car repairs, or even Christmas shopping. This is a major no, no! The emergency fund in the first step to financial security.

The next step is to start paying off debt. This means credit cards, car loans, home loans, personal loans, school loans, etc. The quickest way to accomplish this is to start paying off one credit card at time until it is at a zero balance. Pay the minimums on the others until you get one wiped out. Then move to the next one. Eventually you will be freeing up cash every month so you can double and triple your payments as you wipe out each debt. Once all of the credit cards are gone, move to the bigger loans, until you have nothing left but a house payment. Then you can easily double or triple up on your house payment until it is done.

This is proven to work. But it will only be successful if you are able to be dedicated and keep your eye on the bigger picture.

Reading and following the guidlines in the "Total Money Makeover", by Dave Ramsey has changed my life.

I currently have no credit cards, no school loans, no personal loans. I have less than a year left on my car, and then I can start on my house. My husbands car is paid off and he also has no loans. The goal is to get yourself in a great financial position so you can live like no one else in the future. But for this to work, you must dedicate yourself and live like no one else today. Cut up those credit cards and put them in a box , as you pay off each loan-put those reciepts in a box. Keep them all together so you can visually see the progress you have made. It is quite a feeling to have the weight of debt lifted from your shoulders.

Now is as good of time as any to get your financial fitness in order. A sure fire way to do this is by reading "Total Money Makeover" by Dave Ramsey and following the necessary steps to ensure your financial fitness.