Buying vs. Renting - What Should You Do?
by Brad Chaffee

I think a majority of people would say it is better to buy simply because of the “I own it”, way of thinking. I used to believe the same thing. I think people do not take into consideration all of the things that should change that “normal” way of thinking.

Dave Ramsey believes that if you are in debt, have no savings and no plan you SHOULD NOT buy, and I am right there beside him in agreement. You need to consider insurance costs, property taxes, as well as being responsible for ALL repairs. All of which does not enter into the equation when you are renting. You absolutely have to factor in the risk that comes with buying when you aren’t ready. Also, I believe that anyone wanting to buy a house and doesn’t feel they should wait for the 100% down plan to kick in, MUST be able to qualify for a traditional 15 year mortgage. Otherwise creative financing may CREATE more of a problem than a solution. Adjustable rate mortgages, balloon mortgages and interest only loans are given to people that ARE NOT ready for home ownership. Just for the record we have an “Interest Only” loan and WE HATE IT! We had a case of house fever because we “had” to have this house. Hindsight is 20/20 by the way.

We “own” a home because of that same way of thinking, but I wish we would have waited until we were a little more prepared for the responsibilities that come with home ownership. There was one time when we had TWO houses at once. One we were renting out and of course the one we are currently living in. Murphy hung out on our back porch for sure and I am so glad we got rid of the rental. I am 100% convinced that we dodged a bullet as we signed the papers to sell the rental. Not only was it before the real estate bubble burst, but we were really eating some cost due to our tenants. We found out that people do not take good care of something they do not own. Sometimes finding another tenant was like finding an employee to cover shifts the day before the biggest day of the year. Our turnover rate was probably higher than McDonalds. My point is that we were not ready and because of it, we paid some stupid tax. We were told that it was “smart” to get another house and to rent the first one out. Luckily, we still made some money in the end after the dust cleared. Notice I said luckily!

When is the Right Time to Buy?

If you are doing a Total Money Makeover then you probably know this answer. If not grab a pad and pencil so you can write this down.

Before you go into debt to buy a house you should first pay off ALL, yes I said ALL, your outstanding debt. This includes cars, boats, furniture, medical bills, student loans, and anything else that you are making payments on. Get rid of it! Use what is called the debt snowball to pay off your debt from smallest to largest. Every time you pay off something roll the money you were paying on that debt over on to the next debt. Once ALL your debt is paid off, you should then save 3/6 months of monthly expenses. If you are single, then you should definitely choose the 6 month number. Your one income, if lost, could put you in a world of hurt so you need to be prepared. Also if you have an irregular income, or work on straight commission you will want to be prepared for those slow months. Otherwise it is up to you and your spouse to decide which to choose. Dave Ramsey says that the spouse that wants the Fully Funded Emergency Fund (FFEF) the highest wins. If you want 3 but he/she wants 6, he/she wins.

Once you have no debt and have saved 3/6 months of expenses you are ready to start saving for that down payment. No, 0% down mortgages, and forget about the 30 year mortgages all together. A 15 year mortgage will not be much more per month than a 30 year and you will save a ton of money from avoiding the extra interest. Dave likes to point out that a 15 year mortgage ALWAYS pays off in 15 years. Before you head off to the Mortgage Company though, I would like to offer another solution. This solution will make you learn a lot about patience but it will also give you the most Financial Peace. I would like for you to consider the 100% down plan.

100% Down? Are You Crazy?

Nope hear me out. If you are on a Total Money Makeover and you have saved your FFEF, which is Baby Step 3, then you are ready to knock out two more baby steps before you start saving for that home. Baby Step 4 is to save 15% of your pre-tax yearly income for your retirement. Then if you have kids, or plan to, you can start investing $2,000 a year into an Educational savings Account (ESA), which is Baby step 5. With no payments to speak of, a solid Emergency Fund, 15% towards retirement and approximately $166 a month being put away for college expenses, you are in a fantastic position to become gazelle intense and save for that house you’ve been wanting. If you are intense enough, in two to three years you could be in a position to buy a very nice, paid for home, with no payments EVER. EEEEEEVERR!!!

You have NO PAYMENTS and 3/6 months of savings. Your income is FINALLY yours to build wealth so that you can experience true Financial Peace. The average person doing a Total Money Makeover reaches Baby Step 7 (Build Wealth) in an average of 7 years. That is not bad when you consider that most people have a mortgage, car payments and any other thing they can finance for their entire lives. So seven years of sacrifice and hard work doesn’t seem so bad, does it? Giving up the bondage of slavery for Financial Peace and freedom is very appealing to me. I sure wish we weren’t slaves to our lender!! Now we have a plan and we will remove the bondage as fast as we can.

Extra note: The argument I hear the most about why you should have a mortgage is because of the tax benefits. A tax deduction is NOT a good reason to buy a house. To avoid paying Washington in order to claim the interest as a deduction and give the bank significantly more of your money is not good math.

Plan, Save, THEN spend!

Levels of Weirdness
by Chuck

I’m getting so excited, I can feel my level of weirdness rising. I only felt apprehension when I crossed the first level of weirdness, swearing off debt. I mean, who in this day and age does that? Oh com’on not use credit cards, what planet are you from, everybody uses credit cards. So it was nothing but a fear I slowly crossed into the first level.

I then took a bold step and used my tax rebate to fund my online FPU class and with the remaining rebate half funded my Baby Step One Emergency Fund. Right away I learned how to make a written budget I could live with and more importantly stick with. I learned that even a perfect budget on paper is just a waste of time unless you actually follow it. Duh. Sounds simple right? But I learned by putting down in black and white all the things I’ve been spending my money on. Wake up call time here! I had to have that “ut-oh” moment with myself when I looked down at that spending plan I just finished. That moment said to me if I had all this money I worked hard for going to these things ( okay to insert your past mistakes here ), then look at all those things I could not fund in my wish list. Level two of my weirdness kicked in here. I realized there is a way to reach those places I wanted myself to be. It was a mixture of shame, irritation, anger, relief and hope. The negative feelings were from looking at how stupid I had been with money in the past. The last two emotions were from knowing all the tools I learned in FPU would get me to where I want to be. Level two on the weirdness scale, using a budget for your money month in and month out. Think of it, who knows what their money is for before they even get payed? Man, that’s weird!

I’m getting excited because I have to tell ya, I got to whisper it ,come here ,closer….. anybody looking this way, no? Okay here’s the deal I’m going to be without a car loan!! No really. I have only two more payments and I will not have a car loan. I know what your saying. Everybody has car loans or a car lease. I will have neither one in a mere 60 days. I’m excited about it! I know I will never have another car loan or lease in my lifetime. Ever again, period. Whoops, I think I just got kicked up to level three on the scale! Happy about not having a car loan ever again. That’s just weird. I can hear you out there now. But dude, you gotta have a car to get around man, how are you going to get by? Oh, I will have a decent car guys, I will just have it free and clear unlike you who have another four or five years of payments. I also realize that I will not just be spending away that amount I’ve been paying on the car loan. You see I can now use that money to get a big push on my debt snowball. You see I’m weird. Watch out I have a plan and I am not afraid to use it.

Weird isn’t it? How weird are you?

Relationships That Count
by Brad Chaffee

You Do It!

If there is one thing that comes through clearly in the “Relating With Money” lesson it is that we all need support and encouragement.  We need each other.  If you are married, you need your spouse in order for this money thing to work.  If you are single you need someone to hold you accountable.  So many people that I know use the “you do it” philosophy when it comes to money.  I have too.

When Alana and I first got married, she was the one who controlled the finances.  That was until we had a few too many of those “money fights”. This is when the sparks flew!  She finally said, “Okay…YOU do it then!”  Macho me, said “Fine, I will!”  Needless to say we still had money fights after that.  Yep, the one who was accusing messed up, and Alana chimed in with an, “I told you so”, and she was right.  I deserved it!

The person that handles the money is ALWAYS responsible for what goes wrong. The burden of such an important part of our lives should not be carried by one person!  Dave Ramsey says that we should work together so that we agree on everything beforehand.  Agreeing on everything from the start eliminates the possibility of placing blame.  Agreeing on the budget and intensely following the plan reduces money fights dramatically.

Same Page?  We’re Not Even In The Same Book.

How do I fix our financial problems if my spouse is not on board?  That is not an easy question to answer.  If this is the case for you then as Dave would say, “You don’t have a money problem as much as you have a marriage problem.”  In which case, marriage counseling would be the likely solution.  All of us can be selfish little whiners when we want something, so I am not leaving anyone out.  I have done it and so have you.  The truth is that it is immature and irresponsible to think that you should be able to do your own thing with the money, regardless of who earned it.  When you got married you agreed to be a team for life.  Your spouses input should not only be respected, it should be mandatory.

It is important that you do not nag your spouse though, and whatever you do, DO NOT continuously say, “Dave Says…”.  (Believe me, I know about this one.)  Instead try approaching them in a loving way and simply express your concern over the finances.  Explain to your spouse how important it is to you that you both gain control of the situation.  Do a budget and show them why they need to be concerned too.  Gently ask them to check out this book you read so that you can talk about it.  I am of course talking about the book The Total Money Makeover by Dave Ramsey.  You can still disagree on things but at least you can start listening to each other and communicating about what is important to each of you.

Single and Scared.

What a feeling it is to be single and struggling financially.  I have been there before and I remember the feeling that overcomes you as soon as Murphy stops in for a visit.  If you don’t know, then do this.  Set the timer to take a picture on your camera.  Get ready, and scream at the top of your lungs making sure that you use every single muscle in your body.  Now look at the picture and you will know what a financial disaster can mentally do to someone who is single.  It is a painstakingly agonizing feeling that takes your hope and flushes it right down the toilet.  So what do you do?

Put yourself on a budget, telling every single dollar where to go before the month begins.  Now get yourself an accountability buddy that will help you stick to this new budget.  The most important thing to remember is to not justify improper spending because you deserve a break.  You deserve a break, but not the kind that is going to make you sink even further in the financial abyss.  Instead do things that will encourage you.  Create a budget for yourself as if you had NO DEBT and NO PAYMENTS.  What does your budget look like?  How nice would it be to be in that position?  You owe it to yourself to get there.

But Mommy!

We have all done it.  We have all bought our kids something when we knew we didn’t have the money.  Yes, we are ALL suckers!  I know I sure am.  To look in your child’s eyes and resist the pitiful puppy dog look is tough.  The bottom line is that we MUST resist.  Not only should we resist, but we should take the time to teach our kids about money.  The schools are not going to!  We need to teach them how to give, save, and spend.  We need to keep them from struggling like we have.  It is never too late to teach your kids how to manage money and that starts with your example.  If you buy anything you want, they will buy anything they want.  If you are slave to the lender, then so will they.  Don’t pass that down to them.  Prepare them to win with money.  Show them this chart.  You should check out Junior’s Clubhouse, and even buy them Financial Peace Jr.  Change your family tree now.  Don’t put that burden on your children’s children.

Good Luck!

I Want My Golden Goose!
by Mikki

I am sure everyone has seen the movie Willy Wonka and the Chocolate Factory.  At least twice, right? It actually happens to be one of my favorite movies (the original of course), though Johnny Depp played the role of Mr. Wonka brilliantly. But do you remember the part where the rich girl is in the chocolate factory and she tells Mr. Wonka that she wanted the golden goose and she wanted it now? She even drummed up a high school musical type theatrical, singing and prancing around about everything she wanted. Now I don’t need to remind you of what happened to the little girl, and the many other children that failed to listen to Mr. Wonka.  For those of you who have never seen the movie, the ending was not pleasant to say the least.

Why do I mention a movie that is ever so innocently geared towards children you ask? Its simple, because most of us in our adult lives can relate to the little girl and her golden goose tantrums, as well as seeing it in our children on occasion. As I have begun to walk down the yellow brick road to debt freedom, I talk to more and more people who believe just as the little girl did, just as I did only a few months ago. Those who have been though Financial Peace University have watched Dave’s video that speaks about this issue.

So the saying goes, “I work hard, I should get what I want.” Of course you should, but under the right circumstances.  We as a people fail to realize the true consequences of acting impulsively and purchasing things on credit because of the “I earned it” type of mentality. You can probably attest to this if you live paycheck to paycheck. So what can we do to insure and maintain financial bliss while Veruca Salt lives within us? Well here are a few tips in case you feel the urge to have a tantrum like Ms. Salt did in the movie.

1. Save up and pay cash.

2. Sleep on it before you buy it.

3. Wait for a sale, or look on Ebay.

4. Buy it used.

5. Ask yourself if it is a need or a want.

6. Just say no!

I hope these few tips help you, and feel free to add if you have more ideas on the subject. After all, you don’t want to end up being sent down the “bad egg” hatch for mismanagement of your money, so lets get on the plan and be about the business of creating wealth and happiness!

Do you have a Veruca Salt moment that you would like to share?  Leave a comment and tell us about it!

Expensive Hobbies
by Chuck

How Much Does Your Hobby Cost You?

We all have’em! I’m talking about those hobbies you have that take your money. I was joking around with a person on the Enemy of Debt forum about paying for cable or dish TV. It got me thinking about the hobbies we all have and how much money we devote to them. How do we justify the money we allocate to hobbies when we are in the process of getting out of debt? I mean some hobbies can take a big chunk of change on a continual basis. No matter if it’s a recreation sports team your on with all the equipment you need, or a passion to do something like photography or scrap booking, it will take money to continue doing them. How do you pay for it, and do you feel guilty after spending the money on your hobby?

I am not immune from this type of affliction mind you. One of my favorite hobbies is computing. Keeping up to date with that, I have seen me turning over a good amount of money over the years. I own several types of computers from desktops to laptops. I have spent money on buying a very experimental computer from One Laptop Per Child foundation. That is also something I’m very interested in but not a topic for Enemy of Debt. Do I feel guilty about the money spent? Yes, sometimes. I know that the money could have gone to my snowball. Some of the money was spent before I learned of Dave Ramsey and is the cause of my snowball! Why do I feel guilty? I realize we all have to have a life while doing the debt thing. In a way though I wonder if it shades my gazelle intensity. How about you out there, are you going through the same thoughts when you spend on your hobbies?

What’s Too Much?

I can’t speak for you with your hobbies or how you spend your money. I can only speak for myself and how I reach my conclusions and ultimate decisions. I have, after a lot of soul searching, decided I will continue with computing as one of my hobbies. I would like to eventually go back to take some schooling for it maybe. That being said, how I remove the guilt of spending, is finding alternative ways to fund my hobby. I have taken unused items laying around the house and sold them on Ebay. This offsets the cost of my hobby. I cut back on other areas of spending in my life. Like I said in the beginning of this post all this thinking of hobbies started over a conversation on paying for cable TV. I do not have cable or dish TV. I only have the standard few stations my tv will receive and I am fine with that. I find I do not miss all those channels I used to get either. I have prioritized my hobby into a life style I feel comfortable with.

Another way I have come to justify my computing hobby is to make it into a hobby that gives back to my community. I am now in the early stages of starting a 4-H computer club in my area. I can turn something that has brought me a lot of fun, and turn it into a way to give back to others. If and when the new 4-H club takes off, I will feel totally content with any money I have spent so far. It will have raised what was just a fun past time for me, to something that has the capabilities to reach out and help young kids. In a nut shell I can have my cake and eat it too! That’s my way of taking a hobby and molding it fit with Dave’s teachings.

Later………
Chuck

As most of you know I am a big fan of Brian Tracy.  Here’s Brian Tracy talking about wealth, happiness, and balance.  If you don’t have balance then that means there is something that needs attention.  It is up to us to manage our lives like we manage our jobs.  A machine that needs all parts to function in order to work at it’s best is just like our lives.  Everything has to be properly maintained or something will fail.  Failing in one aspect of our lives can often lead to failing in the very thing we wanted to succeed in the most.  What good is a great job, if spending all of your time working causes a divorce?  Balance is important, and it is up to us to find out what our balance is. Enjoy!

Hello everyone! I have another introduction to make. Her name is Mikki, and she is on fire! To give you a little history, Mikki and I are accountability buddies. We connected in the FPU Forums and have been great friends ever since. We are two Gazelles grazing in the field weary of the Cheetah in the distance. Our attention is intense as we pay off our debt, and deal with life’s little problems. We support, encourage, and inspire each other on a road that is very hard to travel alone. Our families and our future are at stake and we both understand the importance of continuing on. We often refer to a day when her family and my family are vacationing together sipping on drinks on some distant island. No debt, no payments, no regret, just financial peace and happiness. That day will come, and we will be excited to celebrate it.

Mikki wrote an awesome blog about what her debt free call to The Dave Ramsey Show would be like. She did a very good job of expressing the excitement of such a tremendous achievement. I am very blessed to have such a motivated and hardworking accountability buddy, and it is what made me decide to ask Mikki to be a contributor on Enemy of Debt. (EOD)

Now there are three of us. Me, Chuck, and Mikki. There will be no more additions to the EOD Team. As three gazelle intense individuals come together we hope to spice up EOD in just the right way. I hope you enjoy, and as always please tell a friend about this debt free blog!

Better Than I Deserve
by Mikki

Last night I was laying in bed, thinking about the day I could call the Dave Ramsey show and scream “I’m Debt Freeeeee!!”. I started to wonder what I might say to Dave when he goes through his normal questionnaire and it went something like this…..

Dave: We have Mikki from Detroit on the line, what’s up Mikki?

Me: Hi Dave, how are you?

Dave: Better Than I Deserve. How can I help?

Me: Well Dave I am calling to let you know I’m debt free!

Dave: Alrightttttttt!!! How much have you paid off?

Me: $35,000 In 18 months

Dave: Wow making what kind of money??

Me: I started out at $35k a year. I picked up a part-time job and also started working my real estate business and now I am half way through the year at $55k!

Dave: Wow, thats amazing! So what made you decide to get out of debt a year and a half ago?

Me: Umm well, I had just turned 25 and had just purchased a house. I was driving a $20,000 car making about $28,000 at the time. In December I got into a car accident and smashed the front end of my car, thankfully no one was hurt but, the car had no insurance on it. At the time I was driving an hour each way to work and one thing after another started to happen. I almost lost my job, and the car ended up being taken from me because I couldn’t afford the payments. I was so overwhelmed with the new house and bills that I thought about taking my life. So I was sitting at work one morning and my mom called me, she told me they were offering FPU at a local church in Detroit, maybe I should check into classes in Lansing (Which is where I work). I was like ok here she goes with this Dave talk stuff again! But at that point I pretty much had nothing more to lose. I really did feel like Job in the bible and that I couldn’t lose any more than I had already. So I searched for my zip code and found a class at a church that actually started the very next day Dave.

Dave: Wow thats amazing!

Me: Yeah so I called the coordinator and shared my story and he said the class would be perfect for me, and since then I have never looked back.

Me: And Dave you know how you say Murphy moves in right when you start the program, well he did because about 3 months later I was forced to move out of an apartment that I was living in with a friend of mine, I had been saving for BS1 and I had to use that money to find a place. Had I not started the program I would have been a total wreck when all that happened.

Dave: Wow what an amazing story Mikki, so what would you say the hardest part of it was??

Me: I would say being made fun of but after a while It didn’t bother me anymore.

Dave: So what was the last thing you paid off?

Me: Sallie Mae.

Dave: Ahhh, good ole Sallie getting kicked out of the spare bedroom.

Me: Yup!

Dave: So now that you have been through the process, what do you say the key to success is?

Me: The key is have an accountability partner, and being Gazelle intense. I became friends with someone on MyTMMO, his name is Brad. “Hi Brad!!” We have become really good friends and I think having someone to share that experience with you is the greatest thing, but it doesn’t work if they aren’t as Gazelle intense, and Brad is the poster child for the Gazelle. Also Dave I want to thank my FPU coordinator and everybody on the Total Money Makeover forums, Those are the coolest people around!!!

Dave: Hahahaha, thats awesome Mikki, so your 27 now with out a payment in the world except for the house. You are so weird now!

Me: Yep I know I feel weird!

Dave: Hahaha, so what do you say to those 25-30 year olds struggling to make it?

Me: I would say they should know they are not alone and to pray as much as you can. God doesn’t put more on us than we can bear, and you have to put your trust in God 100%. The program gave me hope for my future because before I didn’t see my life being anything, but now I see a bright future and I can show others that they can do it to. Its important to have friends and family around you that love you because if it would not have been for my mom, and my best friend I would not be here today.

Dave: Mikki thats great advice, so are you ready to count it down?

Me: Yeah! 3…2…1… I’M DEBT FREEEEEEEEEEEEEEEEEEEEEEEEEEE!!!!!

Dave: Yeaaaaaaaaaaaaaaaa! That is how it’s done folks!!!

(insert tears)

Have you thought about how your debt free call would sound?

Meet Chuck

Hello everyone! I just wanted to officially introduce you to Chuck. He is someone I met in the FPU Online Forums as he too was going through the course. He also has a passion for debt freedom and agreed to write some guest posts as a contributor. I have hit a wall with time since I started coordinating my own FPU classes at my church. I will be posting one or two posts per week and Chuck will pop in from time to time to express himself. I have given him the freedom to post whenever he wants so I hope you enjoy his work. Please comment and share your thoughts with him.

Please check out Chucks articles by clicking on the links below:

1. Does Anyone Blame Themselves Anymore?
2. Keeping The Cheetah At Bay

I hope you enjoy! Share your thoughts.

America has no use for Piggy Banks anymore!

America is in the RED!

With a negative savings rate, America is in DESPERATE need of a Total Money Makeover. What will it take? When will people finally understand why saving money is too important to ignore? America needs new priorities, like yesterday! As one of the very many bloggers who blog about money and personal finance, it is my duty to help spread the word. How much do YOU have saved up?

What in the world is keeping us from doing what we know we should?

Is your savings account overflowing with riches? I didn’t think so? Lucky for you, there are answers. Based on our own experience and that of those around us, payments are the biggest hindrance to why Americans don’t save. After all, our payments are often times our entire paycheck. We (society) have payments for credit cards, student loans, furniture, electronics, cars, Christmas, cable television, internet, and some have taken loans out on their pets. All of these payments are the reason we can not save money.

Who is to blame? The company you work for? The school you went to? The Government? Rich people? Prepare yourself for what I am about to say. The answer is none of the above, it is YOU. You have subscribed to normal and you may have not even known it. Society is not a very good example of how we should be saving our money. Society has forgotten what the word priority means. A priority is defined as something highest or higher in importance. Society says that it is more important to impress others. I say that impressing others by going into debt, is a bad priority. Impress them by not living paycheck to paycheck. Impress them with contentment and Financial Peace! Rearrange your priorities if you want to win with money.

A credit card is NOT an Emergency Fund!

Anything that hurts you more than it helps you should not be used as an Emergency Fund. An Emergency Fund is supposed to cushion emergencies not create them. If you continue to use credit cards for emergencies, you will continue to live paycheck to paycheck. Credit cards are not our friends! They only encourage us to spend money that isn’t ours, and they trick us into believing that the interest we pay for the privilege to do so is worth it in the end. Is it? How well are the credit card companies doing? How well are you doing? I think the answer is obvious, don’t you?

Blame the evil rich people!

Dave Ramsey has a very good example of why hating a rich person because they are rich is completely wrong. As if just the fact that someone has lots of money makes them evil. Money is not good or bad, it is AMORAL. It’s the person who handles the money that is either good or bad. Money can be used for good and evil, by rich people as well as poor people. How about using it for good to combat evil? If we all were doing better off financially, wouldn’t we be in a better position to really help those in need? Instead we are conned into believing that the Government can do it for us. We continue to do poorly with our money and then expect an inept Government to bail us out. By the way, doesn’t the Government need a Total Money Makeover? Not to mention a new rule that says to be a Government representative one must complete Financial Peace University training? Dave Ramsey for President?

I’m sure you know who Murphy is!

Murphy is that law that says if it can happen it will. When you are unprepared Murphy will stop by and completely sabotage your life. Just when things seem to be going smoothly, he will come in and destroy your hope. Without an Emergency Fund you are more susceptible to emergencies! When anything happens that you are not prepared for it is an emergency every time. When you are prepared, Murphy stops by because that’s just life, but he doesn’t have the same impact as he once did. Prepare yourself today and tell Murphy to get lost. Having an Emergency Fund is a pretty good way to eliminate some stress too!

What would it be like to have an Emergency Fund?

Day Dream with me for a moment. You have been introduced to a Total Money Makeover and you are prepared. For the first time in your life you have NO DEBT, and you have saved up 3/6 months of expenses. (See diligence does pay off) All of a sudden you hear a crackling sound coming from somewhere in your house. You soon realize that the crackling was not popcorn and has quickly turned into a swooshing sound. Is it raining? Well, in a sense. Your pipes have busted and you just know it is going to cost thousands of dollars to fix it. Your basement is flooded and this is an emergency. What do you do? You calmly walk over to the phone, call a plumber and a clean up crew, and then you grab your checkbook and write a check for the total. No scratching and clawing your way to the next dollar! No borrowing money from family! You didn’t have to pay someone 18% to solve your problem! Instead, you were prepared. Doesn’t it feel GREAT? Congratulations!  (A rainy day fund really does work, especially when it rains!)

Now wake up and go make it happen! Prepare yourself for “unexpected” events by having an EMERGENCY FUND!! Financial Peace feels way better than your current method. Give it a try!

**I just wanted to share with everyone my very first blog about becoming debt free! This is where it started. A passion to get out of debt, an intensity to do it now, and a desire to help spread these principles to anyone willing to listen! One night I was inspired to connect my love for Baseball as a child, to becoming debt free as an adult. For those who haven’t read this one, I hope you like it. Please comment.**

Hitting A Home Run And Becoming Debt Free Are The Same!

7 out of 10 people live paycheck to paycheck without even blinking an eye!!! After all it is what everyone else is doing right? Have you ever tried to do a budget? This blog is about telling your money what to do. It is about getting rid of the debt that keeps you from enjoying life. It’s about having a PLAN!

Do you feel it’s just too late and you have no traction? I am going to show you exactly what it looks like to become debt free. I am quickly becoming a part of the winning team, and that is the 30% who have decided that treading water is just not good enough. With all the effort that it takes to swim in place, you may have decided that you are sick and tired of following your plan. You are ready to swim in rough waters. Just like swimming in rough waters, getting out of debt is much of the same. It’s tough at first but eventually you get stronger and the rough water starts to feel like a gentle stream.

Once you make it to the gentle stream it is so rewarding and refreshing, In order to get there you have to change your financial plan, because what you have been doing has got you right where you are today! As Dave Ramsey says, “You have to face the person in the mirror”. You have to decide what is more important, the car which is pulling a monthly payment, or getting out of debt? I tend to want to experience true freedom. Have you tried to budget only to find out that your money runs out before you want it too? There is a reason for that. It’s called “YOU”! What if you got rid of your car so you could free up some money? Could you use an extra $300 a month? I found it helpful!

Look at getting out of debt the same as hitting a Home Run. A Home Run is always more fun than just getting a double. We all know that the farther you hit the ball, the closer you are to making it to home plate. Having a car payment is like getting thrown out at first, because you didn’t hit the ball far enough to get anywhere!. Getting rid of your car payment is like practicing and getting stronger so that you can hit it further and further!!

Don’t you want to make it all the way around the bases so you can see how it feels to hit a Home Run? What base have you made it to?

1. FIRST BASE- You have decided to never borrow again! You are now on a budget and are telling your money where to go instead of wondering where it went. You are becoming gazelle intense and are realizing that you may have to downgrade to the cheaper, more affordable living arrangements. Sell the car(s)! Sell the big screen T.V.! What do you have to sell to get as much traction as you can? Make it to second base!

---



2. SECOND BASE- You are now doing everything you can to build up an Emergency Fund to make you ready for when life happens! You have dropped the weight of your car payment, and built some protection . Not only are you running faster but you are starting to build some confidence, and you see hope! There is a light at the end of the tunnel, NOW RUN TO IT!

---



3. THIRD BASE- Now you are starting to taste the possibility of approaching home. It feels good! You are now paying off your debt from smallest to largest. Your confidence builds even more and your taste for Financial Peace is making you run faster and harder!

---



4. HOME PLATE- CONGRATULATIONS! You have hit a Home Run!! How does it feel? Now you are DEBT FREE except for your house and you are ready to add to your collection of Home Run balls! This collection is your payoff from so much hard work and diligence! This collection represents your Fully Funded Emergency Fund .(3-6 months of expenses) Did you think this was ever possible? Now you know and are probably feeling pretty good about your decisions to change your broken plan! Way to go!
   

---



5. ALL-STAR TEAM- You have hit a GRAND SLAM with the bases loaded in the Ninth Inning! You are the WINNING RUN! You now have money going towards retirement (15%), as well as funding your kids college fund! You are now a Baseball sensation which has made you make the All-Star Team. Your mortgage is paid, and now you are ready to BUILD WEALTH AND GIVE LIKE NEVER BEFORE! More importantly after all your hard work and effort you will FINALLY be able to live the rest of your life with dignity! Free from the worries and stress of paying off all of the debt from everything you “needed”!

If you aren’t ready to hit a Home Run then prepare for the consequences of just making it to the batter’s box. Soon you will have to explain to your family why the phone is ringing every twenty seconds because you have borrowed everything you gained. Do you want to tell them about eating Alpo at retirement or shall I?