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Daving it

Some of you may be familiar with Dave Ramsey.  He is a financial advisor with his own show, etc.  He compares his advice to a dietician who says "Eat less, exercise more."  I came across a resonating line in his Total Money Makeover book a few nights ago:  "My plan isn't complicated, it's just hard."

Partially because we felt like we were treated poorly by AT&T (which jacked our interest rate up to 26% after we were a day late on our payment ... the day before the new consumer protection law went into effect), and partially because we have felt like we were financial dolts, Dee and I decided to join the ranks of people following the Ramsey plan.  It requires a few things:
1)  Get current on all your bills
2)  Create a detailed, written, zero-based monthly budget (and use it!)
3)  Get a liquidated $1000 emergency fund
4)  Cut up all your credit cards and vow never to use credit again (with the possible exception of a home)
5)  Pay off all your creditors in order of smallest amount owed to largest

There is stuff after that, but it is a few years down the road, and I'm not ready to dream those big dreams yet.  heh.  One day at a time.  Right now, we are finalizing our budget and starting to pay off debt.  (Dee posted a great picture of our credit cards cut up and in a paper plate.)

Here is what we have to give up:
1)  Spending any money without having throught about how it fits in our budget
2)  Relying on credit cards to make our spending flexible
3)  Thinking about items in terms of monthly expenses instead of total cost
4)  Helping others when they have emergencies
5)  A larger security blanket in case something hits the fan

I would like to go on about how difficult this is going to be, but I would just be whining.  We have every possible convenience at our home, we live in a state with extraordinarily inexpensive entertainment and natural attractions, and we have a good income.  Especially after watching Precious last night ... I can't complain at all.

I think I've made a few mental changes already (at least, I hope I'm not just fooling myself by jumping on a bandwagon without it taking firm internal root).  I was driving to work and I heard a Lending Tree commercial, and my first thought was "When bank's compete, BANK'S win."

Here's to the hopeful demise of my FICO!

keep musin',
  B

http://amusingbeam.blogspot.com/

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