We discovered Dave Ramsey’s Financial Peace University about a month ago. We got the home study course with DVDs. We’re not finished with it yet but it’s already made such a difference in our lives. Dave prescribes a series of baby steps which take you from the edge of disaster to a position of building wealth.
For most of our spending we use cash. It makes a world of difference. It’s one thing to go into a store saying, “I want to spend about $50.” It’s a whole other feeling to walk in with $50 in your pocket and no more.
We also started a budget at EveryDollar. There’s a free version that is wonderful and we used that for a while. But we finally went ahead and got the plus version. It allows us to simply drag transactions from our checking account to the budget category they belong to. We automatically know how much is left to spend in that area. That works really well for our non-cash categories.
The debt snowball is also an awesome tool. You basically keep paying the same amount to your dept regardless of the minimum payments. If I pay off a debt that has a $100 payment, I simply increase the amount I send to the next debt by $100 which pays it off that much faster. There are debt snowball calculators that will lay the numbers out for you.
I highly recommend the program. It offers a plan that brought us hope to what seemed like a hopeless situation.
Now we’re focused on how we can cut our costs and send as much money as possible to our debt.