In 1997 Dave Ramsey wrote a book “Financial Peace”. He is very active, he publishes books, conducts seminars, broadcasted on radio, was even featured on some major TV news and talk shows. I read his book and was impressed by his simple plan that completely changed the way we ran our financial lives. Ramsey made a number of suggestions, among them were…
- Live below your means (spend less than you earn)
- Get completely out of debt
- Pay minimum on all debt except the smallest loan or credit card
- Dedicate everything you can to pay off the smallest
- Then pay off the next smallest like rolling a snowball
- Pay cash for every purchase
- Never, ever “invest” with someone who earns commissions when they sell you an “investment”
- Never, ever “invest” in something you don’t understand completely.
We follow these, and other suggestions in the Ramsey book even today, living debt free changed our lives. Since the late 1990’s he has published other books and various products related to money management. I still follow most of his suggestions with some exceptions:
- I don’t use debit cards I use a credit card and pay the balance to zero every month
- I make monthly payments on my new car because Toyota gave a zero interest car loan as part of their new car deal.
- I no longer trust the Banking and Wall Street thieves