Our Debt Free Family

Commit. Plan. Take action.

A Few Things to Know About Loans

| 1 Comment

The current life standards have forced many people to think about the option of getting a loan whenever they want to buy something or enjoy a good holiday abroad. Even though people are paid much better than 20 or 30 years ago, the standards have risen to a point where you need to apply for loans several times throughout your life.

This is not something that we should be ashamed of. After all, those are things that we have to get used to. Some research has shown that more than 60% of the people in the world are living in some kind of debt. There are many things to know about loans and paying them off, but we wanted to share a few interesting facts about them which are highly informative.

Debt Consolidation

When you get a loan, it’s important to have a plan on how to pay it off. If you don’t have a plan, you might end up not being able to keep up with the monthly payments which can lead to a lot of trouble. One way to manage to overcome a problem like this is debt consolidation.

Debt consolidation is a form of refinancing in which you take a loan which will pay off all other loans. There are many advantages to it, like lower interest rates, fresh start on monthly payments, etc. But, these advantages come only if you get this type of loan form a good and credible company. So, it’s extremely important to choose a good company which will help you deal with your financial difficulties.

The overall lower interest rate is what makes debt consolidation loans so popular and handy for anyone who is having trouble paying off their debts. With this type of loan, the repayments can spread over to a larger period.

They Are Available Online

As we all know, there are plenty of advantages that came with the rise of the Internet. Many services have been made available online. Such is the case with online loans. Many online lenders hand out loans to people all around the world and they became extremely popular lately. The reason for that is that they are very easy to deal with.

Online lenders are flexible with their clients. To make things even better, their approval rates are much higher than the ones of the banks. Online lenders have a 70-75% approval rate, whereas the banks have around 55-60%. The applying process is also much faster – all you need to do is fill out an application and wait a few days for feedback.

Countries With Low Interest Rates

The top 3 countries with the lowest interest rates in the world are Switzerland, Denmark, and Japan. The good economic state, as well as the politics of the countries, have been huge contributors in making them stable and ‘affordable’ to the people. Feel free to check out the top 5 list here.

Side Jobs Can Help You Pay Loans

This may sound a bit funny, but many people around the world take up some side jobs as a way to help them pay off their debts. And they can extremely helpful, a lot more than you would think. There are plenty of easy profit-making side jobs that can better your financial status and ease your worries when thinking if you are able to pay off your debt. Going online to make money is also a good idea.

5 Things to Avoid to Live Debt-Free

| Leave a Comment

Live debt-free

Reaching financial freedom is far from easy. Only 29% of Americans consider themselves to be financially healthy. Once you obtain debt freedom, you want to be able to stay there. So, there are several things you’ll want to avoid to live debt-free.

1. Budgeting is Always Crucial to Your Financial Health

You had to budget to get out of debt. That doesn’t stop just because you no longer have creditors to pay off. In fact, budgeting is even more important once you’ve paid everything off. If you don’t set a budget you run the risk of racking up debt again if an emergency arises.

Remember that your budget needs to be 100% cash. Don’t consider your credit cards or any other form of money spendable.

2. Overspending is a No-No If You Want to Live Debt-Free

That directly ties into overspending. If you start considering the money available on credit lines to be spendable, it is more likely you’ll restart the cycle of debt in your life. You certainly don’t want that after all of your hard work to get where you are.

Instead, plan for bigger purchases and save up for what you want. You should also have a set budget for recurring expenses and other plans. Don’t deviate from that budget.

3. Don’t Stop Saving Your Money

Saving money isn’t just important during your debt freedom journey either. As mentioned in the point above, it is important to save money for large purchases and planned expenses. However, it is also always a good idea to keep money saved.

Having an emergency savings fund will keep you from tapping into credit lines if something comes up. Additionally, saving money can help you secure your financial future and ensure you’ll be able to retire someday.

4. Giving Up on Investing Isn’t an Option

When it comes to saving for retirement, you should also continue to invest while you live debt-free. Even though you may not have as much cash flow or you may be tempted to spend cash, it is a good idea to invest in a diversified portfolio.

Not only will this allow for you to have financial freedom throughout the rest of your life but it can help you expand your current finances. Avoid being afraid of the stock market once you’ve paid off your debts.

5. Neglecting Insurance Will Cost You

Renter’s insurance, homeowners insurance, car insurance, and health insurance. Purchasing coverage is important to protect your finances. In the event of an accident or emergency, these policies can help you avoid racking up debt.

Even though the monthly cost of insurance may seem like a pain, it can help you replace damaged items, restore your health, and protect your belongings. Without it, it is easy to swipe your credit card. Insurance is crucial if you want to live debt-free.

Readers, what else would you add to the list? How do you live debt-free?

Read More

Debt-Free and Bored: How to Manage Life After Debt Freedom

| Leave a Comment

debt-free and bored

If you’re like me, you are probably still daydreaming about what it might be like to be debt-free. Surprisingly, many of the people I chat with once they reach financial freedom find it a bit boring. So, here are a few things to consider if you’re debt-free and bored already.

What it Means to be Debt-Free and Bored

You may be thinking, “how can you be bored with being debt-free,” but it is possible! The road to debt freedom is anything but boring. So, once you pay everything off, some individuals find themselves wondering, what next?

Many people actually slip back into debt at this point (almost like they are looking for a financial challenge). They’ll begin doing things they never would have done before paying things off. So, why now?

Well, financial freedom is very freeing but it also removes structure from your finances in some cases. If you were sitting down and budgeting to pay off debt, you knew where everything is going and typically have a few problems to solve. But, once you’re debt-free, things can get a little boring after a while. What’s next?

Things To Do

If you want to stay debt-free without boredom though, it can be difficult. There are so many things out there tempting you to swipe a credit card or take out a loan on. Here are a few things you can do if you find yourself debt-free and bored…

  1. Plan something you have to save for. Whether it is a vacation or a new car, you can always find something exciting to save up for. If not having a new financial issue to solve is the problem, finding a reason to save can help with your boredom.
  2. Take on DIY projects. Homeowners can take advantage of the freed-up cash they have from paying off their debts to make some improvements around their home. Put in that dream bathtub you’ve always wanted or re-do the kitchen. It’ll keep you busy and you’re putting money back into your real estate investment.
  3. Invest. Generally, once you’ve paid off your debt, you can start looking at different ways to invest. Be sure you’re maxing out your retirement contributions. Then, think about looking into other places to invest. The stock market can be an exciting place if you’re feeling bored.
  4. Bet on yourself. Maybe you’ve always wanted to quit your job and travel or start your own business. Without any debt attached to your name, you can bet on yourself. Take the extra cash you have and put it towards your next adventure, whatever it may be.
  5. Donate. Now that you can, donate some of your money to good causes. Take time out of your day to volunteer.
  6. Find new challenges. Just look for something else to challenge you financially. For some people, this may mean becoming active in the stock market. Others may look into peer-to-peer lending or different ways to expand their cash. Look for something that interests you.

I’m still working towards my own debt freedom goals, but thinking about a day where I might be “debt-free and bored” is exciting to me. Debt-free readers, what have you done to maintain your financial freedom?

Read More

3 Consequences of Abandoning Credit Card Debt You Never Knew About

| Leave a Comment

Consequences of abandoning credit card debt

Anyone who has followed the blog over the past few years knows I’m no stranger to letting things fall into collections (and later having to pay back WAY more than I owed). I’m not proud to say it has happened to me on several occasions now. If you are thinking about letting some of your debts go, you should be fully aware of the consequences of abandoning credit card debt before you do.

The Consequences of Abandoning Credit Card Debt

As mentioned above, I have abandoned debt in the past. Eventually, I wound up having to pay it off to further myself in life and on our debt-free journey. However, many people don’t consider the consequences of ditching your debt that way.

For me, abandoning my credit card debt meant paying way more than I’d originally owed. One credit card I stopped paying on when I owed $500. In the end, after settling with a collections agency, I wound up paying nearly twice that.

1. Your Interest Rate WILL Start to Climb

Before your debt is handed off to a collections agency, the credit card company will try and work with you. They give you about 60 days before it is reported. As soon as you miss a payment though, your interest rate will begin to change.

Your current interest rate is only because you’ve made payments on time and consistently. The first time you miss a payment, they’ll be watching your account and your credit score. Changes in either will likely increase your interest rate.

2. Paying The Debt Back Will Be Close to Impossible

Once that bigger interest rate kicks in, it can be close to impossible to pay back through the credit card company. This is a big reason why so many people choose to abandon their credit card debt. Even once the debt is passed on to collections, the amount is so much more than you initially owed it can be overwhelming.

The best piece of advice anyone can give you if this is how you’re feeling is to call and talk to the credit card company. They may put a hold on the account until it is paid off, but it won’t go to collections and it won’t have as big of an impact on your credit. Most places will work with you.

3. For The Next Seven Years, It Will Haunt You

And possibly longer! Depending on the statute of limitations on debt in your state, any credit card debt you ignore will stay on your credit report for seven years. In some states, it can even be as long as 10 years.

Having marks on your credit report like this can really prevent you from doing important things in life, like buying a home or even getting a job in some cases. Imagine it preventing you from having the credit needed to do these things for a decade!

In the end, it is best to just pay off your debt. Believe me, I learned the hard way. If you do need help or can’t pay your credit card debt right now, call the creditor and research your options. The worst thing you can do is act like it doesn’t exist though. You’ll pay the stiff consequences of abandoning credit card debt.

Read More

5 Side Jobs That Help Pay Off Debt

| Leave a Comment

side jobs that help pay off debt

Whether you’ve found yourself temporarily out of work or you are looking for hustle, finding a side job can greatly benefit your debt freedom journey. Here are five side jobs that help pay off debt (or can, if you work hard enough).

Dog Walking

This is by far my favorite side gig to mention these days. With apps like Rover, you can get started as a dogwalker fairly easily. Just sign up, fill out the application, and start getting work as a walker. Some people have been able to make up to $40,000 per year doing this. If you’re able to make even 25% of that, imagine what an amazing debt snowball $10,000 would be.

Blogging Like You Mean It

Blogging is one of the most popular side jobs that help you pay off debt. Just about anyone can start a blog but to make money with it, it can be hard work! If you’re interested in blogging for extra cash, take the time to learn about affiliate marketing and how to make money through your blog. Otherwise, it may wind up just being a hobby.

It is also important to write about something you care about but that other people are interested in as well. For instance, I’ve been on a weight loss journey for some time now. I blog about that and people are interested in products I use, workouts I do, etc. Find what people are interested in when it comes to you!

Become a Delivery Driver

Programs like Uber Eats and Doordash have become increasingly popular in recent years, especially as a side hustle. Of course, the pizza delivery gig has always been reliable. However, companies like Postmates and other delivery services will let you order from just about anywhere. Some people are able to completely replace their income with it. If you’re just looking for some additional debt snowball money, you could easily make a few hundred (or more) per month.

Look Into Babysitting

Care.com is a great resource for finding nanny jobs, babysitting gigs, and even pet-sitting opportunities. You can also look on Craigslist, Indeed, and LinkedIn for these positions. Occasionally, you may find something on Facebook as well. Network and use your social connections to land some care jobs on the side. Typically, these will pay around $20 per hour, sometimes more if additional tasks are included.

Freelance on the Side

Whatever you do for a living now, find a way to do some more of it. You’re already good at it, so why not earn some extra cash? For instance, if you are a website developer, you could use your spare time to work privately for individuals launching new sites.

The same could be said of a landscaper making additional money on the weekends mowing lawns or an interior designer painting in their spare time. Use what you know to earn more and then throw those extra earnings at your debt!

Don’t Underestimate Side Jobs That Pay Off Debt

Some people’s hustles look different than others. I, for one, enjoy hands-on things that I can get done in a relatively short period of time, like writing a quick blog post or news article. That doesn’t mean everyone’s side job will be the same though. Some of them won’t look like jobs at all.

Many people find extra money to pay off debt or spend by using cashback apps or doing surveys online. While these won’t pay as much as some of the side job ideas listed above, it will still add a little something extra to your debt snowball, and that’s always a good thing.

 

Readers, tell me about your debt side hustles! What are you doing to speed along your debt freedom journey?

Read More

Have You Heard About Credit Karma’s 30-Day Debt Payoff Challenge?

| Leave a Comment

Debt payoff challenge

Last week, I chatted about money challenges and how they can help you reach your financial goals. In the blog post, I mentioned that many people “hack” the challenge and switch it up to focus on paying off debt instead, making it a debt payoff challenge.

Well, the folks at Credit Karma have gotten together to put together a challenge. However, instead of spreading it out over the span of the year, it challenges you to lose the debt in 30 days. Here’s how…

The 30-Day Debt Payoff Challenge

Paying off debt, even a small amount, can significantly improve your financial outlook. Like a 30-day weight loss challenge, a 30-day debt payoff challenge focuses on trimming the amount of debt you carry little by little with these steps.

  1. Cancel all of your unused subscriptions. You’d be surprised at how much money you’re wasting month to month. Whatever you’re able to save, apply it to your debt!
  2. Cook at home and use what you have. Eating out is expensive, even if you’re single. Cooking at home saves us around $400 per month (seriously). Also, try using what you have in your house and go as long as you can without shopping. You can use this app to find recipes using ingredients you have in the house.
  3. Skip your morning coffee and drink more water. Starbucks coffee every day is expensive and water is free, it is as simple as that.
  4. Make lists when you shop and buy generic. When you go to the store, go with a strict list and do not stray from it. You should also try to buy generic brands when possible.
  5. Plan a no-spend weekend. Pick at least one weekend a month where you just stay home! You can check a few things off your to-do list around the house and save money.
  6. Turn off the lights and unplug appliances. You can also save by closely monitoring your water and gas usage. Then, put the extra cash towards debt payments.
  7. Consider swapping your car for ride-sharing. In some cases, it may be cheaper for you to sell your car and use Uber or Lyft. If your daily ride-sharing bill will be less than your car payment, insurance, gas, and parking, it may be something to consider.
  8. Look for free things to do. There is something free to do, always. Check out your local library, head to the park, and scope out local bulletins for events.
  9. Enroll in automatic savings at your bank. Always pay yourself first. You can set up automatic transfers to savings when you get paid.
  10. Pay in cash (you may be able to save). At some businesses, you can save money if you pay in cash instead of check or card. This is the case at most gas stations.
  11. Call and negotiate the rates. Take a look at your bills and see if there are any fees you can get waived or interest rates you can negotiate. Then, give the creditor or company a call.
  12. Be thrifty. Instead of getting new clothes at the department store, head to the thrift shop. You’ll be surprised at what you’ll find and how much you’ll save.
  13. Host a yard sale. When you have gone through your closets, host a virtual or physical yard sale. YOu can set them up and promote them via social media.
  14. Make more payments with the money you’ve made/saved. Once you start seeing “extra” money, put it towards your debt repayment.
  15. Compare month-to-month. At the end of the month, compare your finances to the previous 30 days. What has changed? Are there habits you’d like to keep?

Credit Karma outlines all of this across 30 days (you can see the original post here), but I’ve condensed it a bit. Instead of focusing on one new habit every day, you focus on one habit every two days over the span of the month.

Altering the Challenge for Your Needs

Of course, everyone’s financial situation is different. If you need to make more aggressive payoff attempts, you may want to consider a more strict snowball method. If you want to snowball a challenge, you can do that too.

To alter the challenge, you would try to increase the amount you are able to snowball towards your debt each week or month. For instance, you may want to increase your snowball amount by $1 the first week, $2 the second week, $3 the third, and so on.

Others may find it better to increase the total monthly amount like $100 the first month, $200 the second month, $300 the third month, and so on. As you pay things off, the more “extra” money you’ll have to toss at other debts, making it easier to increase the amount you’re paying.

Either way, committing to the challenge and making the changes you need to in your life to pay off your debt can be life-changing. A plethora of individuals on the web have saved and paid off debt thanks to these challenges.

Readers, have you tried a debt payoff challenge? What were the results? 

Read More

3 Free Printable Debt Free Charts to Help You Reach Financial Freedom

| Leave a Comment

debt free charts

We are looking forward to establishing some awesome New Year’s resolutions for our finances at the end of this year. I’ll be updating you all with that in no time, but it got me thinking about the tools people can use to help them reach their financial goals. Doing some looking around, I found some amazing debt free charts and other ways to stay motivated while tracking your progress.

Debt Snowball Chart

A debt snowball chart helps you manage your debt payoff method. Snowballing your debt means you take any additional money you have and put it towards paying off one of your accounts. You do this in order from smallest to largest amount owed. As you can see below, to organize this debt payoff method, you list the debts in order, along with the minimum payment due and your debt snowball payment.

debt free charts

Using this method of tracking can help you see how quickly you are making progress on your debt freedom journey and keep you motivated. Download an editable worksheet here or print a PDF version.

Color-In Debt Free Charts

If you think tracking the numbers might get boring for you, consider using a color-in debt free chart. You can print these online in various places and use them in various ways.

These color-in charts can help you track your overall debt and how close you are to being debt-free. They can also help you track a specific debt, like a car loan or credit card. You can download various debt free charts online (free of charge) and print them out.

Savings Charts

While it isn’t a debt-free chart, per se, having a place to track your savings can be helpful too. There are a number of savings challenges on the internet that provide charts for helping you track your savings. Saving Advice is a hub of said challenges, including the 365-day money challenge, the 52-week savings challenge, and the 12-week savings challenge. Each of these can be tracked through a chart, like the debt snowball chart above, or you can use the color-in method to track your savings goals.

How to Create Your Own Debt Free Charts

Creating your own personalized debt freedom chart is fairly easy too. If none of the charts above suit your needs, simply follow these steps.

  1. Decide what your long-term goals are for your finances. Before you create a debt-free chart or any other finance tracker you’ll need to decide what you are tracking. Is it savings goals? Debt freedom goals? Investing goals?
  2. Determine how you want to break down the process. Then, once you know what you’d like to track, figure out how you are going to break it down. If you are tracking a debt-free goal, it may be best to track it by every $200 paid off (or whatever increment you decide).
  3. Figure out how you can stay motivated. If you know seeing the numbers will keep you motivated, consider something like the debt snowball chart above to track. Others may be more motivated by seeing a coloring sheet filled in. Whatever motivates you is what you should use.
  4. Start tracking. Once you decide on what will work best for you, start right away. You’ll put yourself that much closer to your financial goals by just biting the bullet and getting started.

No matter where you are in your journey, finding ways to stay motivated and track your progress is important. Consider printing out one or more of the debt-free charts above.

Readers, how do you track your progress? Share your ideas in the comments below!

Read More

My Word For 2020: Productivity

| Leave a Comment

productivity

Social media has changed the world in so many ways (some good, some bad). One thing it has certainly done (for me) is provided me with new, interesting ways to think about things and approach projects. Recently, I have seen people choose a word to represent the year to come. Many people have chosen words like “hustle” or “positivity.” My word for 2020 is “productivity.”

Why I Chose This Word

Of course, everyone wants to be productive, but I chose this word this year because last year was really busy. Even though I was running around and felt exhausted and busy constantly, I didn’t get as much done as I wanted to. Then I came across this inspirational post on Facebook and it really spoke to me. It said…

Be productive, not busy.

When I read that I was like, “that’s it! That’s what I need to focus on.” It is kind of like that old adage “Work smart, not hard.” I want to focus on improving my everyday processes to reach my goals (both short-term and long-term). Before starting projects, I’ll analyze what the best approach is to protect my time (and money).

Productivity Goals

A lot of my productivity goals for 2020 will require a bit of planning. To start, I’ve begun waking up just a bit earlier every day and jotting down a brief schedule of what I have planned. If you saw my last post, I talked about my main goals for the year and I plan to achieve each of these by being productive and planning out my day.

For instance, to achieve my goal of learning German, I will carve out 10 to 20 minutes every day for a quick lesson. To be able to read a book a week, I am scheduling about an hour a day devoted to that alone. My goal of practicing self-care every day will be achieved by waking up just a little earlier and taking care of my skin and practicing yoga.

Our main finance goal of paying off at least half of our debt will also be helped along by being productive instead of busy. Last year, we were a bit frantic with our financial plans. This year, we will track every penny and have a set plan for paying off our accounts.

All in all, I am hoping that setting a goal to be more productive (and less busy) this year will free me up to do more of the things I enjoy, like spending time with my husband, hiking, reading, doing makeup, and crafts. As I’ve stated in the past, a huge part of me being successful in life, and in my finances, is being able to achieve a balance. That’s why I’m choosing to be productive and NOT busy this year.

Readers, do you choose a word to describe your year? What is yours?

Read More

Determining Your Maximum Debt Limit: How Much Debt is Too Much

| Leave a Comment

When you look back on what you have been able to accomplish in your life, chances are that it was all possible due to debt.

Without a loan, you wouldn’t have owned your first home.

Without a loan, you wouldn’t have driven that first car of yours.

And without a loan, you couldn’t have earned that first degree.

In other words, debt can truly be a good thing. However, according to the old adage, you can have too much of a good thing. If you feel that you have piled up too many loans, there are tips to help you pay off your debt in a smart and efficient way.

So, how much debt is too much? Here is a rundown on how you can determine your maximum debt limit. Let’s get started!

How Much Debt Is Too Much?

A good way to determine how much debt is too much in your situation is to look at your ratio of debt to income.

To get this figure, you should divide your recurring debt each month by your gross income each month. You will then express this figure as a percentage.

Your monthly debt includes anything that you have to pay each month. This includes, for example, your mortgage, credit cards, car payment, and student loan.

Meanwhile, your gross income is the amount of money you bring home prior to paying taxes, Social Security, and insurance.

Example of Debt-to-Income Ratio Calculation

If you have $3,000 in current debt and generate a gross income of $6,000 per month, your debt-to-income ratio comes out to 50%. Unfortunately, this is not a good figure.

Many lenders generally like to see ratios of around 36% maximum. In fact, some financial advisors state that ratios of more than 20% are indicators that consumers are borrowing too much. Still, others say that near 30% is the magic number.

What does this tell us? It tells us that there’s no black-and-white answer for how much debt is too much for you. However, if you find that your disposable income each month seems insufficient, you’re probably carrying more debt than you should.

How to Help Yourself

If you’re wondering whether to get that next loan, ask this question to yourself first. “How much debt is too much?”

There are many different reasons to get a loan. Irrespective of the circumstance, you must eventually pay back the borrowed money. Therefore, it is always advisable to not borrow more than you need and your repayment ability.

When you start feeling the burden of too much debt, consolidating all of them into one can help you simplify your finances. In some cases, you may even be able to reduce the monthly payments.

The next time you decide to get a loan, determine your requirement, check about your ongoing debt payments and figure out how much you need. There are lenders who also help you to determine the ideal loan amount and then design a suitable repayment term for you.

Always find the right fit lender and loan fit for your financial situation.

Image source: Institute for Money and Technology.

Is Financial Peace University Worth the Money?

| Leave a Comment

financial peace university

My husband and I have been toying with the idea of starting Dave Ramsey’s Financial Peace University in the new year. Both of us are just tired of being in debt and have listened to Ramsey’s show quite a bit. While we are aware of the seven baby steps he suggests to help you get out of debt and on the road to financial freedom, we can’t help but think fully devoting ourselves to the FPU lessons and lifestyle change might help us even more.

This has driven us to start researching more into what FPU is, how much it costs, and whether or not it’ll be worth the investment for our family (and yours).

What is Financial Peace University?

If you haven’t already heard of it, Financial Peace University is a series of lessons put together by Dave Ramsey, Rachel Cruze, and Chris Hogan to help people budget, become debt-free, and financially independent. It includes a plethora of budgeting tools, livestream videos, and pre-recorded money lessons from experts.

FPU uses these tools and videos to help people navigate Dave Ramsey’s baby steps and has helped millions already. You may be thinking, “I’ve seen the baby steps online for free.” However, FPU provides additional resources and support to help you stay on track. So, how much does it cost and would it be worth the investment for your family?

How Much Does It Cost?

Financial Peace University costs $129 the first year. After that, it renews at $99 per year. If you’re on a tight budget, that may seem like a lot of money (I was a bit turned off by it at first). The results of the courses provided by FPU can’t be argued though. It has really helped a lot of people.

Included in the price are nine video lessons that you can watch at home or join a local group. You’ll also get access to EveryDollar Plus (a $99 value), Ramsey’s Debt Snowball Calculator, access to coaches for questions, livestreams from experts, as well as additional benefits and courses.

On top of that, there are different bundles for different situations. For instance, there is an FPU Marriage bundle we are considering that is $139 for the year. This includes some literature about how to manage the baby steps as a married couple. Other bundles include an EveryDollar Budgeting bundle, FPU + Total Money Makeover bundle, and an FPU + Everyday Millionaires bundle.

The Baby Steps

If that pricing seems a bit steep, Ramsey gives out his seven-step program essentially for free. You can find the baby steps on Dave Ramsey’s site without paying a penny. Here they are…

  1. Save $1,000 for your emergency fund.
  2. Pay off all of your debt (outside of your mortgage) with the debt snowball method.
  3. Save three to six months’ worth of expenses to fully fund your emergency fund.
  4. Invest 15 percent of your income into retirement.
  5. Put away money for your child’s college fund (if you have children).
  6. Pay off your home early.
  7. Build wealth through investments and give to charity.

These steps have helped more than 5 million people get out of debt and better manage their money. The $129 price tag on FPU can make some people a bit uneasy. If you’d prefer to start out with something smaller, Ramsey also offers a Baby Steps bundle on the site. The bundle includes the following:

  • A hardcover of Ramsey’s book The Total Money Makeover
  • Chris Hogan’s Retire Inspired Audiobook
  • Rachel Cruze’s Love Your Life, Not Theirs Audiobook
  • The EveryDollar Guide to Budgeting – a PDF ebook
  • A starter envelope system
  • 1 free month of the EveryDollar Plus budgeting app ($10 value)

However, it isn’t the entire program. With Financial Peace University, you get additional resources and help to reach your money goals. But it is worth the money?

Is It Worth the Money?

Whether FPU is worth it or not for your family really depends on what keeps you motivated. Financial Peace University helps guide you through the seven baby steps through video lessons and pep talks. As mentioned above, you also get access to other tools to help better manage your money. But you have to take it seriously for it to really work.

For us, the tools, access to coaching, and regular live streams (as well as Facebook support groups) may be worth the money. We are motivated by engaging with others around our goals and could use new tools to help center our focus on managing our money. That being said, $129 is a fairly small investment if it works for us and helps us get out of debt and start living our lives.

Do you think it would be worth it for you?

Read More