Dave Ramsey Recap
Feb 9, 2016 10:37:49 GMT -5
Post by jessiespano on Feb 9, 2016 10:37:49 GMT -5
I'm going to try and do these recaps weekly even if no one else cares, lol. It'll help me process the information and be another reinforcement.
We've been through two weeks.
Week 1 was called Super Saving. Basically, in class, you watch a video of DR giving the lesson, take notes in the workbook, break out into small groups, and then leave with our homework. So the first video essentially went over the baby steps
1. Save $1000 into an emergency fund
2. Pay off all debt except morgatage
3. Put 3-6 months into savings
4. Invest 15% of income into Roth IRAs and pre tax retirement plans
5. Save for child's college
6. Pay off house early
7. Build wealth and give
Then it just talked about the importance of saving and gave examples of people who saved early vs. late in life, and how much they earned.
The homework was to write down all of our non mortgage debt (eye opener) and how much liquid cash we have. The following week, he collected these anonymous cards and announced the classes average debt ($75,000- far above ours, but its all relative) and liquid cash ( I forget, but somewhere around $10k- much more than we have). We also did a quick start budget, but for us it was difficult since our bills equal more than our income. ( I think we are going to have a private one on one meeting with the coordinator for some emergency help).
Week 2 was called Relating with money. This week was all about the different ways men and women handle money. He talked about how Men (in general) lose self esteem with money problems, because money represents a score card, and how women (in general) face fear or terror because money represents security. These roles may be reversed, or both partners may be the same, etc.
He went on to say how most people fit into two categories: Nerds and Free spirts. The nerd likes doing the budget because it gives a sense of control and its how they feel they are taking care of the loved ones. The free spirit can sometimes feel controlled and can appear irresponsible to the nerd. But, the nerd isn't always the saver and the free spirit isn't always the spender. He talked about singles and money- but I'm going to skip that for now.
Then he talked about kids and money. How its the parent's responsibility to teach their children how to spend and save wisely. He recommends paying commissions, not allowance- meaning they need to work to earn money and its not just given to them.
For very young kids, their commissions can go into a clear container so they can see the progress. For kids ages 5-12, introduce a basic envelope system, giving, saving and spending. (of course tailor this how you want) and for kids 13-15- open a checking account and teach them how to balance it.
So DH and I learned that I am the nerd, he is the free spirit (from a little quiz). Our homework is for me to do the budget, since I'm the nerd, and then hand it to DH and let him make comments and adjust, since he is the free spirit. We are to have weekly budget meetings, even though we only get paid monthly, so set each months budget and to keep track of our progress. We also have to read the next chapter in the book, but that is basically the class in book form so its quick.
Next week will be about Cash Flow and the envelope system.
Sitting in class is really stressful because its really shining a light on the trouble we are in. We are starting from step one- saving $1000, because the money we do have is being used monthly to make up deficit, so its not a real savings. We have saved $228 so far from selling stuff, and I am doing little things like the rebates app and swagbucks to help put more in, even though its small amounts. We are talking and trying to figure out how I can get a job, even part time because I think we are at that point. I think this weekend I'll re up my care.com account, and put the feelers out to the community that I'm available on short notice for sitting.
We are hopeful, but since we are both instant gratification types, its hard that things aren't changing drastically. But, we will get there.
We've been through two weeks.
Week 1 was called Super Saving. Basically, in class, you watch a video of DR giving the lesson, take notes in the workbook, break out into small groups, and then leave with our homework. So the first video essentially went over the baby steps
1. Save $1000 into an emergency fund
2. Pay off all debt except morgatage
3. Put 3-6 months into savings
4. Invest 15% of income into Roth IRAs and pre tax retirement plans
5. Save for child's college
6. Pay off house early
7. Build wealth and give
Then it just talked about the importance of saving and gave examples of people who saved early vs. late in life, and how much they earned.
The homework was to write down all of our non mortgage debt (eye opener) and how much liquid cash we have. The following week, he collected these anonymous cards and announced the classes average debt ($75,000- far above ours, but its all relative) and liquid cash ( I forget, but somewhere around $10k- much more than we have). We also did a quick start budget, but for us it was difficult since our bills equal more than our income. ( I think we are going to have a private one on one meeting with the coordinator for some emergency help).
Week 2 was called Relating with money. This week was all about the different ways men and women handle money. He talked about how Men (in general) lose self esteem with money problems, because money represents a score card, and how women (in general) face fear or terror because money represents security. These roles may be reversed, or both partners may be the same, etc.
He went on to say how most people fit into two categories: Nerds and Free spirts. The nerd likes doing the budget because it gives a sense of control and its how they feel they are taking care of the loved ones. The free spirit can sometimes feel controlled and can appear irresponsible to the nerd. But, the nerd isn't always the saver and the free spirit isn't always the spender. He talked about singles and money- but I'm going to skip that for now.
Then he talked about kids and money. How its the parent's responsibility to teach their children how to spend and save wisely. He recommends paying commissions, not allowance- meaning they need to work to earn money and its not just given to them.
For very young kids, their commissions can go into a clear container so they can see the progress. For kids ages 5-12, introduce a basic envelope system, giving, saving and spending. (of course tailor this how you want) and for kids 13-15- open a checking account and teach them how to balance it.
So DH and I learned that I am the nerd, he is the free spirit (from a little quiz). Our homework is for me to do the budget, since I'm the nerd, and then hand it to DH and let him make comments and adjust, since he is the free spirit. We are to have weekly budget meetings, even though we only get paid monthly, so set each months budget and to keep track of our progress. We also have to read the next chapter in the book, but that is basically the class in book form so its quick.
Next week will be about Cash Flow and the envelope system.
Sitting in class is really stressful because its really shining a light on the trouble we are in. We are starting from step one- saving $1000, because the money we do have is being used monthly to make up deficit, so its not a real savings. We have saved $228 so far from selling stuff, and I am doing little things like the rebates app and swagbucks to help put more in, even though its small amounts. We are talking and trying to figure out how I can get a job, even part time because I think we are at that point. I think this weekend I'll re up my care.com account, and put the feelers out to the community that I'm available on short notice for sitting.
We are hopeful, but since we are both instant gratification types, its hard that things aren't changing drastically. But, we will get there.
