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My Dave Ramsey Story

Most of America who listened to Dave Ramsey changed their money habits - slowly turning over a debt-free lifestyle. My story is rather different. I have never been in debt yet Dave Ramsey's Total Money Makeover principles helped me. I have always been a good steward of my money. I graduated college with no debt to my name. My husband did the same thing too. So, of we started our lives with just 2 car notes and 2 great young professional's positions: me as an engineer and my husband as a computer programmer. Honestly, we had alot of money to our name at the end of the month. Being the geek that I am, I was the natural administrator to manage our finances. We did everything we possible could. We invested in 401K, set up Roth accounts and even bought stocks. Fast forward a few years, we lost all but $2,000 in the stock market. Ouch! We just floated along with no solid directions to our financial lives. Our parents weren't Americans, so they know nothing much about how to build wealth here. All they know is to save, save, save.

In 2004, I was flipping through radio stations and I heard Dave Ramsey speaking every emotionally (screaming really) to this man who wanted to help his family by borrowing money. Long story short, I was hooked and became a Dave Ramsey fan. If I had been introduced to Dave Ramsey 6 years earlier, I know my financial life would have changed. It's not bad today, but it could be better.

We used to put everything on the credit card and pay it off. Months after months, it would be several thousands of dollars running through our checking out. We bought lots of stuff we didn't need.

After implementing the Baby Steps, we started using cold hard cash. The power of spending becomes different. I think twice when I put things in the cart at Walmart now - if I really need it. What I want doesn't really matter. That's the way I know I can build wealth. Is to make the sacrifice NOW, so that later, I can live like no one else.

Sad to say, most of the people around me (my good friends and family) are debt-less people. And debt-less people dont see the problem of spending with a credit card versus cash. They think it's the same. I can talk to them until I'm blue in the face, but in the end, it's their money.

Heck, if all of America is like Dave wanted it, we'd be another Japan - where people save more than they spend. This country thrives on credit, thrives on consumers spending. I guess, I just plan to influence those around me.

If you want to turn your financial life for the better, I strongly suggest the Total Money Makeover book. It has changed my life and how I handled my money and so can you. (Gist: Handling money is more about emotions than it is about the mathematical aspects of it.)

Financial Freedom is my next exit. Where is yours?

Posted by Loreena Yeo - Realtor(R)/Broker proudly serving Frisco TX Real Estate on 07/15/2008 06:19 PM

Comments (12)

dave ramsey

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12 Comments on My Dave Ramsey Story

Love Dave Ramsey.

Watch his show every week.

Great ideas and he just really tells it like it is.

07/15/2008 06:25 PM

by Linda Lipscomb RE/MAX Lexington Henderson County TN

Love Dave Ramsey.

Watch his show every week.

Great ideas and he just really tells it like it is.

07/15/2008 06:26 PM

by Linda Lipscomb RE/MAX Lexington Henderson County TN

Great story - Dave Ramsey has very simple (not easy) principles to live by that all of us need to learn and prosper by.

07/15/2008 06:26 PM

by James C. Johnson (Legacy Real Estate)

Loreena, haven't read his book, but if it is practical as Dave Ramsey's radio show I am sure it is a good one.

07/15/2008 06:29 PM

by Gary Woltal - REALTOR® Dallas Ft. Worth (Keller Williams Realty)

I love his stuff, it really makes sense and wonderful rules to abide by. It sure pays off in the long run.

07/15/2008 06:41 PM

by Bradenton Real Estate - Linda Reynolds

I know of people who have gotten out of debt thanks to Dave Ramsey. He is great.

07/15/2008 06:44 PM

by Shirley Parks San Antonio Real Estate & Luxury Homes (RE/MAX Realty Advantage, San Antonio, TX)

Dave is FANTASTIC! My wife and I bought his book over 1 year ago. His "Financial Peace University" is helpful as well. It's basically the book, but in a class format. Many areas host the university for free. Once you buy the program (which you must pay with a debit card or cash... true to his methods) you have access to take the classes. They are once a week and it's really good to get other people's perspectives.

Anyway, I sold my truck and paid cash for a car that runs great, but is paid off. We put our kids on his program as well. They have a little more respect for money, not that is theirs. They make money by doing chores around the house. They have a certain $$$ amount per chore. They also get deductions when they do something on the 'deductions' list.

When they make money, they put so much towards their savings, so much towards 'blow' money, and so much towards tithing. If you have not read the book or taken the class, I strongly suggest that you do. It's VERY easy, because it's just black and white. No gimmicks, but you MUST be focused and you MUST stay true to your budget. If you are going to blow $500 a month on nothing, put it in the budget.

Anyway, this is not my blog and I have typed enough. Thank you for referencing Dave, Loreena. His method is very realistic and very effective. Im not 'debt free' yet, but I am working towards it.

Make every day great!

John Cannata - Reliant Mortgage

07/16/2008 12:27 AM

by John Cannata (Reliant Mortgage Ltd)

A lot of what Dave preaches follows sound money management principles.... yet he seems to go a little overboard with some of it....

Maybe that shock value is a good thing.

07/16/2008 12:40 AM

by Tom Burris | FHA VA & Conv. Texas Mortgage Loans (DallasLoanGuy.com)

I'm currently downloading the daily podcasts onto CDs (which I'll share with you!) as I read this! His philosophy truely is life-changing. I do the thing at Wal-Mart - if it's coming out of my wallet, it better be something I need!!

07/16/2008 05:06 AM

by Jennifer Allan, Author of Sell with Soul (Sell with Soul)

I have heard his show when visting the south. Then he finally came to the Detroit MEtro media market so I need to find time to listen in, as I have only heard great things about him and his principals. Thanks for the book recommendation, I will pick it up at Sams.

07/16/2008 06:28 AM

by Missy Caulk Ann Arbor Realtor Ann Arbor Real Estate (Keller Williams Ann Arbor)

It works and it's not some get-rich quick scheme. I just made my last home equity loan payment this afternoon. I'm officially DEBT FREE and it started with this book. It's not rocket science, but it means not driving a Lexus I can't afford. (I suspect few Lexus drivers can actually afford their cars, but that's another story.) If you're sick of seeing your paycheck go to someone else, do it. If you don't like it, you can always go back to being broke.

07/16/2008 04:38 PM

by Dan Ewing (random blog surfer from Lexington, KY)

I am just starting to follow Dave Ramsey's program - It is weird because it was stuff I already knew (well, most of it) but Dave makes it easier to follow. After watching his DVDs in the program at my Church, he is like an uncle. A cranky uncle, but endeared, nonetheless.

07/23/2008 06:18 PM

by Regina Lundeen (RE/Max Realty Group)

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