The Top 5 Lessons I Learned from Dave Ramsey

After I graduated from college I took Financial Peace University by Dave Ramsey. This 13 week course is offered at hundreds of churches across the country. This was one of the best decisions I’ve ever made.  Dave knows his stuff!

unnamedKeep in mind, I am NOT a financial expert nor do I claim to be.  These are just my thoughts.  Here are the top 5 things that I learned from this course:
1. Create a budget! Even if Judd and I were millionaires our family would still have a budget. It’s important to see where money is being spent.  Below is a sample budget that is a great starting point.

Budget

You first enter your monthly income and then subtract all of the different spending categories. Every dollar that you make should be accounted for.

Adjust your budget to how your family spends money.  For example, we have a travel fund on our budget because we travel a lot.  It is important for us that we put a set amount aside every month so that we can pay for our vacations and not have to touch our savings. Don’t forget to leave a little (or a lot) of wiggle room in the miscellaneous category because unexpected things tend to come up. I track every month to make sure we keep within our budget and that a certain amount is moved into our savings.

It might take some time to initially establish a budget and track all of your spending but within a few months it will be easy and very helpful to your family!

2. Stay out of debt!  Pay CASH upfront for everything- car, vacations, hobbies, etc.  Don’t take a loan out for anything except a house.

3. When buying a house (or even renting) make sure the monthly payment is less than 25% (even less is better) of your take home pay and put at LEAST 20% down when buying the home (to avoid PMI). Having a home you love is important but you also should be able to enjoy your life and not have your entire paycheck going towards your home.

Capture
4. Invest in your future and save! Keep growing your savings account, retirement, and mutual funds!

5. When it comes to mutual funds and your retirement accounts use diversification.  This means you shouldn’t put all of your money in one place.  This will lower the risk of losing money.

If you don’t have time to take the 13 week course, I recommend reading Total Money Makeover by Dave Ramsey. It’s a great book.

1

I don’t practice everything that Dave  teaches…I don’t use the envelope system (I’m not patient enough for this) and I also don’t think that credit cards are bad IF you pay them off every month.

Again, I am not a financial expert…this is just what works for our family, this might not work for you but I hope it helps!

Love,

Bri

One thought on “The Top 5 Lessons I Learned from Dave Ramsey

  1. I love your focus! I also learned that all you have to do, is KNOW who it is you do business with on a daily basis, and when it is they take money out of your account. The rest is organization and proper allocation of whatever kind of money you have. So long as your logarithm allows you to spend less than you bring in each month – you are on your way to debt freedom and wealth building. Congrats!

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s