Florence and I attended Financial Peace University (Mar - May 2008) at our local church (Grace Church) -inspired by radio and TV personality Dave Ramsey.
Dave suggests that the key to getting out of debt and building wealth involves seven "basic" steps.
The pre-requisite is to make a commitment to get out of debt.
Here are the steps:
- Start a cash emergency fund: around $1000.00
- Pay off debt using a debt snowball
- Save 3-6 months of expenses in savings
- Save 15% of household income into retirement savings accounts
- College funding for children
- Pay down mortgage quickly
- Build wealth and give
Performing a quick search online suggests there are variations on these steps or even just about the whole debt thing. As for me and my family, we have chosen these steps and have seen them work.
To form your own opinion on the subject, watch Dave Ramsey's show on the Fox Business Network or search online.