Friday, February 29, 2008

Something to think about

I kept hearing this guys name on money forums over and over. People were praising him and his ideas and encouraging people to read his book http://www.daveramsey.com/shop/The_Total_Money_Makeover_P123C48.cfm
He talks about living debt free and facing the fact that you're being irresponsible and there is no quick fix to any debt situation you have gotten yourself into. He basically says face it you got yourself in, now get yourself out. He also stresses that it won't be easy and will take a lot of sacrifice and hard work but that the end result is worth more than anything. Needless to say I am going to invest in this book. I know he has others that I may check out as well. I like the fact that he wants you to change the entire way you think about and use money. He's right when he says years ago if you didn't have the cash you didn't buy it. As we all know, in todays society, if we don't have the cash we just buy it on credit-usually regretting it later and on top of that we end up paying two or three times the original price.

I've always been a Clark Howard fan and have gotten such wonderful ideas from him http://clarkhoward.com/index.html and find him practical and not into the drama filled circus that Suze Oramn sometimes creates. But Dave Ramsey seems to be much more radical, much more upfront and brutaly honest and I have to admit his take it or leave it attitude is appealing.

We have debt. I admit it is our fault. Sure I could tell you about some of the circumstances where we had noone to help us and needed cash and just didn't have it. Some of those circumstances were out of our control yes. But, in the end, the choices we made and how we reacted to those circumstances is what created the huge pile of unending debt we have today.

For example, my husband got a promotion and was transferred to another state and we were told Thursday he got the job and he was expected to report to work in another state the next Thursday(1 week!!!). We owned a house in NY and new the first thing we needed to do was find a place for my husband to sleep at once he started his job. So we drove to NC found a place and drove back.Then my husband drove back down and started work, I put the house for sale, the movers packed our stuff, and I met him down there within a week. After 10 days of being there he was told his job was dissapearing and he would have to apply for another position and be transferred again IF he got the job.Me being 26 weeks pregnant complicated matters to say the least.And so the financial nightmare began.We had signed an 8 month lease, were still paying our mortgage and he had a possibility of losing his job. We were wayyyyy overstretched taking care of two households.He got the other job and months later(4 days after giving birth) we were transferred and had to continue to pay our current rent along with the $900 rent for the old place where we had signed a lease.Thankfully we sold our house 1 month before we moved or I'm not sure what would of happened.There are things we could of done different like getting him a studio apt. and me staying in NY until we sold the house etc... But it is a lesson learned!!!!!!! And we will never make mistakes like this again ever!!!

I know this is a very long winded post but I encourage everyone to read Dave Ramsey's book and believe in being debt free!

3 comments:

Minilegs said...

I think this guy is one that some of my friends from church are "studying". they want to be debt free also and dig themselves out and live on what they need. I know since we don't really have credit cards to spend on I feel such a huge sigh of relief. I like that whatever we buy now, we own and don't have to pay on for years. Starting this new job is helping me to pay off old debt too, a little at a time. good luck hun!

AnnD said...

My dad swears by this guy. I screwed up and passed up an opportunity to see him in person in November. If you are interested in furthering your financial I.Q. even further, check out "Rich Dad, Poor Dad." I'm reading it now. It's simultaneously inspiring and terrifying. It's a pretty easy, straight-forward read about what the rich people teach their kids about money that middle-class people don't. Very eye-opening. I'll do things much differently with Emma...I only wish MY parents had read it when I was her age...maybe my life would be different.

AnnD said...

I wanted to add that my dad swears by Dave Ramsey....that I passed up an opportunity to see ole Dave in November..not the author of the other book I was talking about.