knowledge without wisdom and understanding is a mistake waiting to happen...Dave's course give you all three.

monte August 23 2010 10:25 PM

Started in Jan and I'm on track to have my fully funded EF approx 10K by december never had that much money free and clear in my savings and NO debt !!! Thanks Dave

RV August 22 2010 9:16 AM

I HAVE ENJOYED READING ALL OF THESE COMMENTS. I HAVE PRINTED THE FORMS OUT TO SHOW MY HUSBAND. HOPEFULLY HE WILL AGREE WITH ME TO GET STARTED ON THIS PLAN.

theresa August 16 2010 3:48 PM

I HAVE ENJOYED READING ALL OF THESE COMMENTS. I HAVE PRINTED THE FORMS OUT TO SHOW MY HUSBAND. HOPEFULLY HE WILL AGREE WITH ME TO GET STARTED ON THIS PLAN.

theresa August 16 2010 2:34 PM

Budgets are fine to a point, but don't be a psycho over this stuff. I ALWAYS pay myself first. This includes maxing out retirement, matching, and sticking with my investment plan. I then pay the bills that will directly affect my credit - rent, credit card if any, in full, each month, phone, internet, cable, etc. After that, I spend the rest. Yup, I spend the rest. I earned it, so I am going to enjoy it. I have a GENERAL spreadsheet, but I just don’t obsess about this stuff and track every penny. That is a supreme waste of your time and life. Take it from a recovering oversaver; you can take this crap too far. I managed to save a million before I turned 40 without stressing too much over the years. Early and often is the key. I started @ age 20. Best decision I ever made. To be fair, I should mention that I don't own a home, car, or have any kids. But before you whine about those factors, I know a bunch of people like me who haven't been able to save $100,000 in the same time frame and I have out traveled them by over 250,000 miles!! So go figure....

Eli August 04 2010 4:20 PM

Now that our kids are out of the house, my husband and I can finally agree on a budget. He never understood the cost of children. When our kids hit a growth spurt, they needed new shoes and clothes NOW. Not when it was budgeted next month. School expenses such as supplies, field trips, pictures, etc. happen all the time. It's extremely difficult to budget but adds up over the course of a month. My husband and I were never on the same page and always disagreed. The problem only went away when the kids grew up!

DK June 10 2010 12:55 PM

I have recently been in a financial position that is very new to me. Money has never been an issue for me until now. I worked at a bank all through college and got a job afterwards making great money. I was doing the snowball effect once I got my dream job and managed to pay off a few things. Well, as you all know, the economy hit hard and being the new kid on the block I was let go. Not having a job for 6 months, and only being able to find a part time job made me behind on all of my bills. I have student loans that are in default and credit cards in the same boat. I realize that I need an emergency fund first, but everything is in default. Should I work on getting everything back in good standing before I start the whole process, or start emergency fund now? Another thing is that the lowest thing I owe on is my car, but it is paid in exactly one year, so I feel like I shouldn't pay extra on that because there is an end to it, not like a credit card. I am not sure how to start. I would gratefully accept any advice.

allison May 29 2010 12:55 PM

Our frivolous and carefree lifestyle came to a screeching halt last month when our roof started leaking in multiple places. But by planning our expenses and making a few sacrifices like getting rid of cable TV and taking public transit to work, Ted and I have been able to save over $2000 in less than a month. The short term plan now is to save enough cash by Sept to completely re-roof the house. By mid-2016 we can be completely debt free including credit cards and mortage... which will be paid off in fifteen years instead of thirty! Thank you Mr Ramsey for helping empower us to take control of our finances.

Joan May 10 2010 10:29 AM

the army gave me a financial class, the chaplains were teaching it. they chose financial peace university. i cant tell you how good it feels to have had this class at age twenty while in iraq and hit my $5,000 max contributions to my roth IRA only 5 months into this year. i've never been in debt, and i plan on keeping it that way.

joshua May 06 2010 4:45 PM

Hi All! I graduated from college in May 09 with 15k in credit card debt, a 16k car loan and 23k in student loans thats a total of 54k and I was 22!!! Since May of last year I have paid off 15k with Dave's Plan...when I put it all on paper in 2009 I cried....I was planning on going to Law School, but I got a job (actually 2 full-time jobs) and re-applied to go part time close to home....I'll be able to be debt free the same time (including any student loans) when I graduate in four years. I'll keep everyone updated!

Robin April 23 2010 3:27 PM

My husband and I have been on the Dave plan for 2 1/2 years and I have to say it hasn't been easy. Staying on a budget and not going out to eat when I'm too tired to cook. But it has been well worth it. We are almost at our goal, one more garage sale and pinching more pennies and we will be there in about 6 months. Can't wait to yell I'm Debt Free!!!

Rena April 16 2010 11:31 AM

Justin, You need to set up a budget to pay the minimum on your cards, after you pay your housing (mortgage/rent), and food (ice cream and most snacks don't count as food). Then look at electricity. If you need to leave the A/C off for longer and be a little more uncomfortable, do it. Then see what is left over to put as extra onto the credit cards. Don't use your credit cards. Use cash only, to ensure that you don't overspend. We've got 4 kids and a dog. But we're on a single income (although that's a very good income). It wasn't easy, but you have to get your bills paid in full, and then keep going until you have them paid off (aside from mortgage if you have one). Then focus on retirement and either the kids college funds, or the mortgage. We refinanced to a 15 year mortgage (2 years ago), so that we'll be able to pay the kids college once the mortgage is paid off. This last step isn't the Dave Ramsey method specifically, but it's pretty close.

Chris April 16 2010 10:58 AM

I would also like to let others know about the site http://www.freecycle.org/ You just enter your city name and it will help you find a group near you. This is an organization where people donate, free stuff that is still working or might just need a little fixing up - but that's a heck of a lot better than spending more you don't have!

Amy April 12 2010 11:42 PM

After 42 years of marriage, my free spirit husband is turning into a tightwad. Hooray! He doesn't want to spend money. It has been a long time coming. Don't give up on a spouse who is undisciplined. He even fixed lunch for us today and served me and did the dishes. Our 6th child is getting married and we are to America for the wedding and paying cash for the tickets. It is very nice. We have an emergency fund. Fun. We started a budget in 2004 and were debt free in May 2006. During that time we had 3 weddings which we cash flowed as we were getting out of debt. Stick with it.

6kids April 09 2010 5:50 AM

My husband and I are in our last weeks of the Dave Ramsey Financial Peace. It has changed our lives. The economy had hit us hard, with my husband out of a job for over a year. Our debt had increased while we tried to stay afloat. At the beginning of the course we cut up the credit cards, dumped cable, dropped trash pickup--anything we could do to save extra pennies. Our class had a joint garage sale in the church parking lot--good times and money for Baby Step 1. We are working hard at getting out of debt. I just want everyone to know...you can do it! You have to have discipline and intensity. We are an extremely low income family, but God is providing. If you are worried about paying for the cost of the program, talk to your church. Ours turns away no one, they provide scholarships. Most churches do have scholarships--just ask. Good Luck!

Chopkins April 07 2010 10:30 PM

I recently finished reading The Total Money Makeover and my husband is reading it now. I'm excited to get started and see where this will take us. We have been married for almost 30 years and it seems we have been living paycheck to paycheck forever. I've already told my husband that we need to put in the budget money to buy the book for each of our 5 grown children so they don't struggle the way we have.

Heide April 07 2010 12:15 PM

I have only heard of this specific program recently and it makes sense and has renewed my faith in staying on track budget wise. I am a single disabled mom with 3 children 2 in college and one homeschooling in 6th grade. I have been doing it, you can, even in a very expensive area to live in on a fixed budget. First, my house payment is always paid, and always a priority, because of this, I have 4 more years until it is paid off. No refinances that stretched it out more years...and so no threat of forclosure that so many have here. I have had to take out seconds from time to time. I took one out for medical bills, had it paid off in time for my oldests graduation, then the roof was leaking and the well pump broke. So, we have a new one, it will be paid off in 4 years also. I only put real house needed things on the second, like the roof. If you let your house fall apart, that is a worse waste of money, you have to fix the roof. But, no new kitchen, vacations, etc... on the line of credit. That has realy wreaked havoc with so many here in the Bay area who were basically living off of loans against perceived house equity. I cook homemade, vegetarian food, which is realy good, healthy and inexpensive. We do not have a cell phone, cable, trash service, propane. We do have internet for the teenagers homework. We heat with wood, have chickens, garden, can, dry, etc...we just bought 2 miniture dairy goats and will have milk starting this summer. I have always had $1000 for an emergency and the kids know where it is so if something happens when I am incapacitated they would be able to take care of it too. My charge cards were down to nothing, but I tried to relocate right around when the housing bubble burst here last year. So, I came back last May. I realy shouldnt be able to afford this house, but we would have trouble selling it, and somehow we are doing it. I used the charge cards a little during this mess, and now owe some money. We have gone from not making it thru the month to making it over the last 6 months. It was hard not to borrow for christmas, but I didnt. I was very creative. I made a few things and bought a thoughtful item each only for the kids, spent maybe $25 each for a gift, found the yarn I used to knit in my stash. extended family got homemade soap, fudge, etc...I havent "borrowed ahead"from the next month using a charge card for 2 or 3 months now. I only owe a few thousand on cards and am dilligently paying off $200 plus interest a month. It will be nice to have that extra $200plus when I am done. It feels good to know we now have a very tight but working budget. We are slowly converting an extra semi-detached place into a studio apartment, a popular choice in this college town, and, who knows ?, maybe when we get any income from it we can save a little for a real emergency fund. It is interesting now with this economy that the skills I honed being a broke single mom are becoming more necessary. I have been hearing stories from other parents of unemployment (it is %15 around here--reported but it is realy higher) and forclosures, and these other moms have no skills or experience on how to reduce their budget. Especially the food budget, they dont know how to cook. I gave one my phone number and told her to call me and we would cook a double batch together and I would show her how to cook beans, how to cook soup, how to load up and use her unused breadmaker in the cabinet ! I hope she is not too shy and does so.

singlemominCA March 24 2010 11:55 PM

I have been reading so many posts and it keeps me motivated to see others working hard. It took my husband and I four years to get rid of almost $50,000 of debt, but we did it, and it made our marriage stronger. We taught valuable lessons to our children about budgeting. I would like to encourage the younger couples with babies, small children, don't give up! Really work on a budget, especially in the grocery area. This is where we have saved the most. We have married 21 years, and I wish we would have been smarter when we first started out. Also, we adopted our children through foster care, and we bought so much "stuff" to make up for the losses our children suffered, but we all really know the most important things are love, a sense of belonging and a safe healthy home. Learn how to garage sale, barter with other families, and find reasonable consignment shops. Good luck and God Bless to everyone working to live a debt free life!

Janie March 12 2010 1:17 PM

I live outside the US and have for over 3 years. One month after we moved here there was a coup and the prime minister was expelled. They have had 3 prime ministers since then. The current prime minister is being attacked politically and the country may get volitale this weekend. Last April, 2009 there was a tank parked in the intersection about 80 yards from the front door of the building we live in. We live in the capitol city. I think my perspective toward acquiring "things" has changed. There isn't a whole lot we really need. Get yourself out of debt no matter what you have to deny yourself. It is getting more and more important to be debt free. Don't play around with it. Keep your family intact. Work together and thank God for His blessings.

6kids March 11 2010 6:23 PM

Well we are about to start week 7. I have a steady income and my wife's is 100% commission. It's hard to make a budget not knowing what to expect. We've paid off two bills and have one to go. I retire in may and have (what I believe is enough) saving. By the time I retire we will only have our 1st mortage. Oh, snowballing does work. We are now helping our son snowball his debt. This system does work, just be patient.

Gerry March 07 2010 5:57 PM

I have thought the same thing at 63 years old. We have a teacher's pension and some social security (which will probably be reduced or not there--we haven't started taking it) and are currently working. I think the cash plan is the only way. Our investments are in a real estate investment company which includes the money to build a house. Worry is not the answer. We may work as long as we live--I don't know. Then I wonder if retirement is a 20th century concept. Why not work? We may change jobs but we will probably always work at something. With a mindset to work until we die, the worry disapates. (We have bought some land--2 acres--to build on with water in case we need to grow our own food.) I've done it before and I can do it again.

6kids March 06 2010 8:53 PM

I've always made bad decisions with my money and now newly married I'm excited to start with the end in mind.

P.J. March 03 2010 8:43 PM

Is anyone else out there scared about the future of our great nation? After many years of sacrifice my wife and I have saved a substantial amount of money but are not quite where we need to be yet. I am becoming increasingly concerned about our economy and the national debt, we are well diversified in mutual funds but I still just have a bad feeling that our economy is going to implode and we are going to be left with next to nothing. Sometimes I just want to cash everything out and bury it in the back yard!

Gary March 03 2010 7:40 PM

Justin, I was thinking about your extras. These were considered extras in "the olden days" circa 1980s. Cable TV, cell phones, internet, air conditioning, multiple cars--you can survive without them. Do we like to? No. But you just have to decide which you like more debt or freedom. You can get along and be happy on muuuuuch less than we are marketed to think. Think outside the box and pay your credit cards off. Don't slack. Don't spend time thinking up excuses. You can do it.

6kids March 02 2010 5:10 PM

I have my BS1 emergency fund and have started my debt snowball. My question is this: My car is on it's last leg. Has 195,000+ miles on it and is having major problems. I just started a new job where they put 14% of my annual salary into a retirement fund for me. No cost to myself. I have about $14,000 in a fund from my old job. Half of that was contributed by my employer in a match. Should I cash that in, get a decent but not new car, and use the rest to push the debt snowball? I will still be building a retirement fund at no cost and can add to it after I am debt-free.

Julia March 02 2010 7:52 AM

i've cut most of our extras, cut our cable down to a lower package, cut our cell minutes down to just enough and dropped Blackberry service and and a few other tweeks here and there. Still not exactly coming out on top. Baby step 1 is complete but I can see it staying put. is it a bad idea or a really really bad idea to send maybe less than minimum on a CC in order to pay more on another in efforts to get rolling on baby step 2. This is the same Justin from back in February.

Justin March 01 2010 3:45 PM

To What Now? I'm not saying life doesn't seem impossible. I'm not saying things can get overwhelming. Are you a member of a church? I was reading a story just yesterday about 5 loaves and 2 fishes. Overwhelming? Seems impossible? I prayed many times that God would take "5 loaves and 2 fishes" and make them enough. I was reading about the children of Israel crossing the Red Sea and God took them on a path they didn't know existed. Do I have the answers? No--but God does. I have had 12 people coming for lunch and was standing in my kitchen with no food to feed them at 10am. A woman drove up in the driveway and told me she forgot she owed me 20 dollars. I took the money and bought the food and no one knew but me. I don't have the answers but God does and He's available 24/7.

6kids February 25 2010 5:48 PM

Almost always agree with Dave Ramsey, but have to take issue with one thing he said on the radio yesterday concerning allowing businesses to auto-draft your checking account. He is okay with it for things like utility bills, mortgage, insurance. But those folks can make mistakes too! And I'm just not comfortable allowing anyone to have access to my checking account. Having said that, I do recommend auto online Bill Pay. The difference is, you set it up to pay automatically for things that are recurring such as insurance, association dues, house payments. For utilities we use Bill Pay also electronically online, just have to fill in the amount each month. Works best for us in our one home. But I think when you have several properties as Dave does, it probably is easier to let them autodraft your account.

David February 25 2010 4:15 PM

Bankruptcy? to save our house... No Credit card dept don't use cc. Alot of Medical bills Cancer... 5 kids how are we going to make our chapter 13 paymnets and get out of this? I have no answers but.... We do have 700.00 of the 1,000 for the emerg. fund which I am sure will be hard to hold on to. Any answers?

What Now? February 25 2010 9:59 AM

Did I mention that from 1984-1994 our adjusted gross income was between 20-22,000 a year? It is not a quick, easy fix. Let's just say it was a character building time for me. Our house was semi-torn up for years and years because we moved into a house that the water pipes had broken in. I drove two cars where the air-conditioner was broken for the last 3 years I drove each of them. My sister-in-law had a saying, "Ain't life grand?" which I repeated to myself on a regular basis. It was worth everyday, every sacrifice and everything I learned. Don't give up! Develop a sense of humor. Don't let yourself become a "Pitiful Pearl".

6kids February 25 2010 6:40 AM

This is for Bill Davis. My husband and I are in the same boat as you with him getting paid every other Friday. Since we have been on Dave's plan for about a year now I can tell you the easiest way. We just take the 2 "extra" checks each year and pay them straight onto the next bill in the snowball. It's a whole lot easier then trying to figure out partial payments and things like that. We just take a calendar and circle all the payday's in the year, then figure out when the 2 extra checks fall in the year so that none of our other bill are late. Then when the extra check comes we know that it just goes straight to the next bill, no questions asked! It's a great feeling to see an entire paycheck make a dent in the snowball, talk about progress!! I hope this helps you, good luck on your plan!

Jodie Williams February 25 2010 12:18 AM

I just found this site yesterday as I looked for help for my sister. Just had a quick thought for those who, like her, don't even have the money to purchase the DR books & course: check the library & used book stores! I'm on my way now, for my sister and myself. So excited!!!

Amy February 24 2010 11:25 AM

I agree with Alice...when you have low income and no frills to get rid of these solutions seem unreachable.

6kidsand oneincome February 23 2010 2:00 PM

This is for Alice and anyone who can't afford to attend FPU. I have led an FPU. If I knew of someone who wanted to come but didn't have the cashflow to attend I would have found funding for them. Did you tell anyone that you wanted to participate? Would you have faithfully attended? A friend and I gave the class to one of the people who worked on my team. Her income was around 12,00/yr before taxes and her husband was not employed. Lots of people with money are looking for places to give that are honoring to God.

6kids February 23 2010 4:05 AM

I have been browsing this site for the first time and was wondering how people budget and get ahead when you are disabled and low income. All this stuff is geared toward people who have money but are just not making good choices. Even when the financial peace university came to our church we could not attend because we could not afford it.

Alice February 21 2010 4:54 PM

I don't really know where to begin. My husband was wrongfully terminated from his job last May where he was may at least $650 every two weeks. Our kids were in daycare and though we had been living with my husband's parents since we married in 2005 we were just about to be able to go rent a home. When he lost his job it was hard but I kept telling him it could be worse. I was making $450 every two weeks, but because our bills started getting behind I had to take out 2 loans at my credit union just to get caught up and it just spiralled out from there. My husband filed bankruptcy to get the cars out of his name that we owed at least $20,000 a piece on and two credit cards with $ 2,000 on them. We reaffirmed a huge loan and put money down on a van for our family with a cheaper and shorter payment, but it still wasn't enough. We found a home in the paper for $400 we bought it but it needed large amounts of work. We have spent every dime of our $5000 tax return fixing it and it is still not complete. Then I am hit with medical bills everywhere. THis is stressing me out to my limit and I can't take it anymore. I reenrolled us in a Dave Ramsey class. Now just to get my husband on board. I would like someone to chat back and forth with me if possible. Please just email me at kdrogers5@yahoo.com or kdrogers@nmhs.net. Thank yoU!

Kristen February 21 2010 3:23 PM

After we went broke in 1984, we moved into a house that hadn't been lived in for 3 years. We had 6 children living at home. One week I had 25 dollars for groceries for a week. It fed 8 of us three meals a day. No one said it was going to be easy. Low income is not grounds for divorce but I wondered at times. In 2004 we attended a DR conference in OKC. Now all 6 children have graduated from college and have no debt. We are personally debt free, retired and living on the mission field in our early 60's. Hang in there and don't give up. It is worth everything to keep your family together.

6kids February 18 2010 4:03 AM

I have been reading all these comments and I have been brought to tears by the heartache of some AND by the optimism and words of encouragement offered by others. All of it has inspired me. Being the daughter of an accountant, I was taught to budget and use the "envelope" system from the time I started my first job--which allowed me to be a stay-at-home mom raising 8 kids on my husband's income. It wasn't easy and there were lots of times I wondered if we would find enough money in the envelope for one more pair of shoes. Now we are retired and have watched our nest-egg fall to half its value and slowly begin to recover and once again I am looking at living on a tight budget. I am grateful I found this site and look forward to reading Dave's book. But mostly I thank all of you for your inspiration and "you can do it" advice. Good luck to those of you who are having trouble seeing how it's all going to work out. It will! You just have to be determined and focused. Keep reading these stories of those who have done it!

Christine February 17 2010 3:46 PM

For Justin - we were in the same boat last September, hoping we had enough on the credit card to buy groceries, "what will we do until payday?", I hear you. You need to find some "dynamite" and bust out that log jam! We sold our treadmill, weight bench and had a few yard sales to fund that emergency fund. Now we're on Baby Step 2. Look around your house, do you need that extra computer desk, all those old baby clothes, sell em! Buy generic diapers for your little one, who cares? Baby doesn't. Biggest reliever was cutting our grocery bill and dropping down our utilities.. figure out the minimum you can live on for food and don't overspend. Do you really "need" all those premium channels? This loosens that tight belt quickly. YOU CAN DO THIS. If I can, seriously, anyone can. All the best to you - we're rooting for you!

Heather February 17 2010 11:24 AM

I decided yesterday that after hearing many in my online homeschooling group rave about Mr.Ramsey, I would absolutely get his book. I came to this site, and almost put it on my credit card! *Eeek!* Then I remembered airmiles. I can get gift cards to be used in store or online at my bookstore! I had enough airmiles to cover $75 worth of gift cards! So, instead of creating *more* debt by using my credit card, I used my head and figured a way to get the book (and notebook!) for free! Wouldn't Dave be proud?! LOL

Lady_Wolf February 17 2010 8:23 AM

This comment is specifically for Justin who wrote on February 10 that he and his wife had just had their second child and he was so overwhelmed he couldn't see the light at the end of the tunnel. Justin, try to remember that God's law always prevails and His strength is perfected in our weaknesses. To me, that means my strongest strength is weaker than God's weakest weakness. He honors our hearts and our motives. He sees that you desire to care for your young family. He sees the pain that you suffer as the daddy of this family and He loves you so very much. Just the fact that you poured out your heart in utter honesty has your Heavenly Father's attention. He knows every hair on your head and before you were even conceived, He knew you then. Just call out to him in your humility and He will save you. Remember Peter, the Apostle, when he was in the waves and felt as if he were drowning. He called, "Lord! Save me!" and the Lord did save him. He will save you too, Justin, and your family. I will be praying for you and all the others that feel alone and hopeless. Just look at your wife and children and receive them as God's blessing. Take your eyes off the money and put them on Jesus. Jesus will tell you what to do with the money. By the way, we were in the same boat for quite some time, but God delivered us and we are out of debt, except for our home. We have been married for almost 24 years and have four children, so ...yeah, it's been tough, but we are still a family. And that is what counts. God bless you and your family, Justin.

Carol February 16 2010 2:05 PM

My wife and I started your class and we are setting up a budget. I get paid every two weeks, so I tried to explain to my wife that the monthly income is not two pay checks, but it is 26 times 1 pay check devided by 12. She disagrees with me. Because she pays the bills, she pays them based on when I get two checks. She wants an accurate budget but does not want to accurately figure monthly income. Should I just let her figure the budget on a 48 week year instead of 52 weeks?

Bill Davis February 16 2010 11:48 AM

I have worked Dave's plan and have paid off all my debt and saved for a down payment on my first home and have 6 months emergency fund savings. I look back at all the debt I accumulated early in my 20's that caused so much stress and worry. For those just starting this journey, stay vigiliant because it is definitely worth it!

happy@39 February 14 2010 3:46 PM

I am new to this process also. I have step one set and working on step two. My problem is that i don't know how to set up my budget. Do I average my monthly bills and use that number or put in last months numbers? So, confused. how do I get started with this.

Ed February 12 2010 4:28 PM

this is for Justin on Feb.10. You just sang my song! We are in the same position right now. Too much going out, and barely enough coming in. I'm new to Dave's system, but what I'm going to do is use our tax refund to complete baby step 1 and start right away on baby step 2. Get your debt snowball written down on paper, and if you can throw atleast $20 extra/month towards the smallest bill, then do it! after awhile, debt will begin to go away! it may take me a couple years to get out of this mess, but that's better than a lifetime of misery. good luck to you (and me)!

Shannon February 10 2010 10:17 PM

I'm so stressed out that I almost feel sick. So much money going out and not as much coming in. How can pay off my debt if after I pay the bills, fuel the vehicles, and put food on the table we are broke, and nervously waiting until the next paycheck. I don't know how, sure I can buy a book and read about it, but I look at the bank account and can't see the light. This is no way to live, just had a second child, which means more medical bills (coming soon) and more daycare to pay for........HOW! No more DEBT! No more CREDIT! I'm drowning and can't find a life vest. Maybe someone out there has been there and can offer some tips

Justin February 10 2010 2:18 PM

This is to Valerie from Feb. 03. Your daughter is missing out on your gratuity and your wonderful giving nature. My parents were not able to afford my college education because no one taught them about investing when they were young. I was fortunate enough to go to a community college were my mother was a secretary and get free tuition for 2 years. I was not a fan of the idea in high school. After that I went to a local state university to finish my degree while living at home. I am so grateful they allowed me to do that and i was able to. I came out with $10K in student loans and a low fixed interest rate when I consolidated after graduation. I'm glad I did not go for the "college experience" only to be crushed by debt later. As far as a job, it's a $10K piece of paper that says "I know how to learn stuff". Only go for the master's if it's something very specific that she will benefit from in the job world.

Rob February 10 2010 11:50 AM

We just started today baby step 1 the day we read the book we cant wait financial freedom !!!!is within our grasp THANK YOU Dave

Randy &Sue February 05 2010 8:21 PM

dave sir , the few times i get to listen to your programme it renew my zest in life to keep out of debt in which i am doing just that.. my question is i make 34,ooo.oo a year would it be wise to purchase a nissan frontier for almost 25,000 and try to pay it off in two years or go for something cheaper.i have no mortage etc i can save $1000.00 a month

michael johnson February 04 2010 4:34 PM

I have been paying for my daughter to go to the local state college, because that was what I could afford. Well, after two years, she has decided she needs "the college experience" and is willing to take out loans to go to a private college to finish the rest of her degree. She wants to live on campus. She has 1 1/2 years left. She is taking out approximately 25,000 more dollars than necessary to complete her degree by making this change. And she still wants to go to grad school. I am perplexed as to what to say to her to change her mine.

Valerie February 03 2010 7:05 AM

This comment is for Mark from 1/31. Don't stop paying on your cards. That only invites more trouble. Make sure you continue making your minimum monthly payment. Take a good hard look at your budget (and if you don't have one, start one NOW). Cut out all unnecessary expenses (cancel memberships, subscriptions, cable, cell phone, etc.). If you still can't afford to pay your bills and start saving towards your BS1, then get a second (or third, etc.) job. Also, sell everything but the kids. Seriously, if it's not necessary, sell it. Good luck in your journey!

Normal Woman February 02 2010 5:58 PM

I'm just now starting the Debt program, I have a question? I have already been foreclosed on my home; I have student loans and owe taxes. Where do I start to begin to get my credit back in order. I have already begun to pay my taxes off, but I need to start on my student loans. I don't have credit cards, I paid those off years ago. I need some good sound advice. Help please.

reneeb February 01 2010 8:54 PM

How do we save for our Baby Step 1 when we are leaving pay check to pay check right now? Do I stop paying some of my credit cards in order to save the $1,000 up quickly?

Mark January 31 2010 4:45 PM

We have been trying to get out of debt for about 5 years...... and it is taking a long time! student loans, car loans almost done with the credit card pym. I have an apt. 3 hours away from home and come home on weekends. We are thankful for our jobs and God's blessings. We just get physically and mentally tired! My husband has been doing a lot of overtime. We aren't together, so it's hard to talk, but we talk on the phone. There's a lot of things that we could cut out, but live in a $250/month house pym, so that has enabled us to afford to pay rent for me. It has just been wearing us down. We could budget better, I know....... it's hard! Anyone else? I'm whining, sorry, God is good, we are blessed!

Kristi January 29 2010 10:43 PM

We are working towards Financial Peace through your program, I recently lost 1/2 my income do to the lagging economy, and found out this week that my base salary would be cut another $100.00 per week. We are behind on bills and I don't see anychange in the near future. I've been thinking that Bankrupsy and or Debt Consolidation may be next in our future, we have been woring on the debt snowball however since November we hve not been able to work on that.. What do we do?

Mark January 29 2010 12:35 PM

Thanks to Dave we are debt free & we have our 6 month emergency fund in place. Two months ago I was diagnosed with cancer and I am so greatful money is not something we have to worry about! I also took extended disability insurance at work as Dave recommends. Now if I need the time, I know we can do it. Thanks for peace of mind Dave!!

sue January 28 2010 5:58 PM

How do you budget when your checks are never the same? I get paid by the hour and my hours are never the same. It makes it a little difficult when how much you bring in is diffrent week to week.

ryan January 27 2010 7:16 PM

Should we pay debt that's already in collections first or focus on credit card debt we are struggling to keep current?

LW January 27 2010 3:20 PM

I have just done a budget on l/23/l0 and I am 67 years of age!!How did this happen?I am learning so much each time I venture out to look and my fears and early family patterns. My parents were cattle farmers and noone ever knew what our income actually was or kept books on what we spent. The needs of the farm ruled. I just learned how I was still living like my parents with great fears about money. Thanks for allowing me to let this out. There is no disgrace if I am willing to grow and to change. I saw where I was $2500 "over-budget" each month. Diana

Diana Weber January 26 2010 12:56 PM

This comment is for Deidre. Have patience and wait on the Lord Jesus. I want to be out of debt to and am not. I don't make some of the salaries that you hear but I've got food, shelter, clothing and a loving family. I Thank God for his blessings and I pray that he will help me to wait on him. His Grace is sufficient. Wait on the Lord and be of good courage, wait on the Lord. God is slowest man I've ever seen to never be late. God is too right to do wrong He's too good to do bad and to wise to make a mistake. Wait on the Lord.

Pastor January 26 2010 7:40 AM

I just got TMM and read it in one day. I couldn't put it down. My wife is going to start reading the book as well so we are on the same page. We have been wanting to be out of debt for so long. We have $50,000 between cars and credit cards. Here is to Prayer, Hope and Determination to having baby step 1 & 2 done in two years.

Jordan January 23 2010 11:04 AM

I just put my credit cards through the shredder and it felt as though a little bit of the debt chains were loosened. I am sick and tired of being a slave to these creditors. I have been unemployed for four months but thankfully just began a new job. I am working diligently to try and catch up on my debts and fund my $1000 emergency fund.

Sherri Latini January 22 2010 5:07 PM

I have put my family in finanical ruin. Both my husband and I have very good jobs and make pretty good money. My debit has overwhelmed my life, robbing peter to pay paul. I have no other choice but to withdraw my thrift savings so we can make room to have some money. I dont have very much in my thrift saving and they are taxing me alot of money. I do not want to go bankrupt. I dont see that light at the end of the tunnel!

Mary January 20 2010 10:50 PM

Just getting started on our TMMO working up the budget was a task to say the least. With this being the first month I know that there will be adjustments in the next few months but I am looking forward to becoming debt free.

Kraig January 20 2010 9:59 PM

"Those who fail to plan, plan to fail"

Houston K. January 20 2010 6:49 PM

"Those who fail to plan, plan to fail"

Houston K. January 20 2010 6:49 PM

i understand the budget table. my problem is we don't get paid with a lupm sum every month. how do you decide what to pay and save with each paycheck?

jlo January 20 2010 1:47 PM

My wife and I will be starting FCU classes this week. Im so excited and driven to become debt free. I have been using Microsoft Money for years and have budgeted pretty well but we still live check to check. We are 75,000 in debt and are currently attending school. I will be fnishing my graduate program in May 2011 so that is added stress that I feel. I have already payed off a 1800.00 credit card this month which felt great. Eventhough I know we will be sacrificing a lot in order to become debt free I am willing to do so. This will benefit not only myself but my wife and 4 year old daughter as well.

Ramiro January 17 2010 7:17 PM

Hoping someone can advise me because I haven’t found anything on this in Dave’s books – Before stating the plan I was able to get myself out of the “living paycheck-to-paycheck” cycle. Now, the paychecks that came in December are being used to fund all of January’s expenses. The paychecks coming in January are being “held” to fund February’s expenses. Is this wrong? I’m on BS2 with a goal to be finished by 12/31/10. If I put a month’s salary towards my snowball I could be finished by the fall. Thanks for your input!

Melanie January 15 2010 8:49 AM

I'm getting ready to start the whole Dave Ramsey program I'm very excited, I think I finally have my husband convinced. We have been married for 23 years and we are in over our heads with medical debt and being stupid with bank loans. Please keep us in your prayers.

Dawna January 11 2010 1:27 PM

Hello, I am new to my total money make over and I need some advice from those of you that are more experienced. I live in Texas and need help with Credit report issues. Some of the ladies here at work told me that if you do not contact the creditor and it has been more than 4 years (in Texas) that you can dispute the debt on your report and/r it will roll off. Dave says that it will not roll off but I don't recall his advice on disputing it. I was recently married in October and when I married my husband I incurred his debt as well. So now that I am getting ready to start my debt snowball, I ran a credit report and started calling creditors to find out full amounts and what the charges were from. Some dated back to 2004 and I am pretty sure my husband has had no contact with them in the said 4 year period. So should I dispute them or do the hard thing and include them in my snowball. Please advise.

Sarah Crawford January 07 2010 3:48 PM

I have read the total money make over. It's really works only if you follow the system. Thankyou Dave.

Ramesh Kumar January 01 2010 5:14 PM

I'm tired of being in debt. I am a divorcee raising two children with one graduating this May from high school and the other in three years.I live in a small college town. Work is limited here. I'm in $21,000 in debt no money for my child to go to college. I only make 14,000 a year. The problem is I am disable and no one want a person that have a chonic disease. What can I do to get out of debt.

Deirdre December 31 2009 10:42 AM

I tried the Gazelle Budget Lite with remaining 0 dollars but it still says I have not created a zero-based budget.

Michele December 29 2009 11:51 PM

Thank you Dave we have paid off 80,000 in 24 months 42,000 to go. 12 more months and we will definitely do the scream you wont even need the phone to hear us. Please pray for our family to stay focused. And also for our small group that we just started that we can be good examples to help our members get their life back.

Steve December 23 2009 6:21 PM

Nathan ... be careful on the traveler's checks. A friend just returned from Germany and France where American Express travelers checks were not accepted.

gail December 23 2009 10:33 AM

Nathan- Check with your bank about using your debit card. I lived and worked overseas for a year for a Christian non-profit and used my debit card on occasion. The credit union I used automatically calculated all the exchange rates when I used the card. That would be my suggestion, but see what your bank/CU says.

Drew December 19 2009 9:01 PM

Marie, Of the three things you listed, you might be able to cut out the massage and pedicure/manicure. It might take more time, but you can probably give yourself a pedicure and manicure and save a significant amount of money. With the snowball, try to find as much extra money from your budget as possible. Remember that the more you pay down on your debts, the less interest you will be paying which will really get the ball rolling! Good luck with your snowball.

Evan H. December 11 2009 4:26 PM

I need advice on working my debt snowball. What exactly do I need to give up, in order to work this correctly? I currently budget money for hair cuts/color, massage, pedicure/manicure. I've cut these way back but do I need to eliminate some of these items I consider a necessity?

Marie December 07 2009 3:15 PM

Dave's plan does work. It is not always easy and you will probably even cry along the way. I have! There will be tears of pain and tears of happiness. My husband and I have been doing this program for about 2 years now and yes, we still mess up if we lose focus. Our children even budget their money (4 and 9 yrs old). Now is a good time to start the program. We began in Feb 2008 (right at tax return time) and that was a kick start for us. We paid off 2 credit cards ($5000 total), my car ($1000), furniture ($800) and built ($2000 in our emergency fund. Once you get your budget down on paper you truely notice that you spend a lot of money on silly things. We saved up enough money to pay cash for a tractor in April 2009. We are still saving and paying cash for items! Cash for Christmas gifts!WOW! We still have one vehicle payment and hope to have it paid for early and live in a new home that we built with our own hands. Once the vehicle is paid for we will work on college for our children. My husband is the finacial advisor for our church and he has facilitated the FPU there. We have been blessed!

Lindsay December 07 2009 11:20 AM

On Baby Step 3, almost to 4, no credit cards for a year now. I have to travel to U.A.E. in Feb, and all travel advisories say to take travelers checks or credit cards instead of cash. What is the best plan???

Nathan December 06 2009 8:18 PM

As stated in a Military Financial Planning Guide...a budget is a systematic way of going into debt! Kim Shea, MSgt, USAF Ret.

Kim Shea November 30 2009 9:51 AM

Just getting started. I have my budget in place and have payed off two small bills. I am excited and plan to pay off 25000 in two years. Thanks Dave. The first time things have looked up in a long time.

Brenda November 14 2009 10:57 PM

I'm 17, and I make sure that I budget and save out of every pay check. It is usually complicated to get my friends to follow in my path, but come on! It REALLY works!

Quinn October 29 2009 10:22 PM

Tears came to my eyes today when I did my budget and I had a $285 surplus after I accounted for everything. I love telling my money what to do!

danielle October 28 2009 10:19 AM

Once we faced our finances head-on, budgeting has allowed us to see & plan where our money is going. I don't have to worry about my debit card being declined because I thought we had enough to cover it. Our budget tells us exactly how much we can spend & no more, with the benefit of actually seeing how much extra we can apply towards knocking off that evil debt.

Tim October 19 2009 8:55 PM

Started Dave's plan in January, and I have paid off almost $15k in debt in 9 months with only 1 income! This plan works and it is too easy to not do.

Chris October 08 2009 3:45 PM

My husband has been out of work for two months now and it looks like it might be a long stretch of unemployment. The good part is that we started our TMMO in 2005, and paid off over $55,000 in credit cards and car loans. We have a good emergency fund (although I hate to have to dip into it), and prior to his layoff we were living on his paycheck. Mine went for savings and paying extra on the mortgage. I've had to cut back on contributing to retirement, but because we were prepared, life isn't so bad. Putting money in the envelopes works and even now we still have our blow money(although reduced), so I am not feeling deprived.

Maggie October 07 2009 8:23 AM

Today is the first day in my 12 years of driving that I have paid for my state inspection sticker on the day that it expired, and not 6 months later. Why? Because we BUDGETED for it! It's amazing that I didn't panic and flip out over "$68.00? How do they expect me to come up with $68.00?" Ahhh... Peace of mind. Come relax with me! It's great!

Noel October 01 2009 8:49 AM

Dave's plan is so simple that it will be the hardest thing you do. You are going to have to change you. Get your budget and your emergency fund. Start the snowball. We have so far paid off $14K in 10 months, having about $13K to go. Don't let Murphy or anyone discourage you; seeing the results are incredible. What makes me sick is the $3K I am now sending Chase, BOA and AE to get out, when I could be investing it. But the light at the end of the tunnel keeps getting bigger. Quicken says according to current salaries, I can get out of debt, put 2 kids through college, buy a $200K house in 2013, and retire in 29 yrs with $2.3million in investments. That is the result of Dave's plan. Thank you, Dave Ramsey.

Adam September 24 2009 7:16 PM

Don't get discouraged. Keep going. Dave's plan works. Live like no one else so you can live like no one else. Do a monthly budget along with getting your $1000.00 emergency fund.

Teresa Nielson September 14 2009 5:19 PM

Don't forget to budget even when you do have a good income... this is the time I pay the biggest "stupid tax".

JillsFavorites August 28 2009 10:39 AM

Always good to have a plan!

ron July 27 2009 4:32 PM