Ways to get out of debt
There are many ways to get out of debt but not many that show you how to change your behavior. Dave recommends a set of “baby steps” that look like this:
- Build up an emergency fund of $1000.
- List all non-mortgage debts from smallest to largest and pay them off using the debt snowball method.
- Save a larger emergency fund of 3-6 months worth of expenses.
- Invest 15% of income into retirement accounts.
- Save for college for the kids.
- Pay of the mortgage.
- Build wealth.
I highly recommend listening to Dave’s radio show or free 1 hour podcast for a few weeks. Then, take a look at The Total Money Makeover: A Proven Plan for Financial Fitness. You can also check with a local church to see if Dave’s Financial Peace University is offered. This will be money well spent but you can do this without the class.
