M&I are almost graduated from Financial Peace University. 

I have taken this class once before when I lived in Orlando and LOVED it. When M&I moved to San Antonio and he got his first big boy job, I knew it was in our best interest to take this class. When you take the class once, you can take it again and again for free!

Financial Peace University, taught by Dave Ramsey, is a 7 step course to equip you with the knowledge and tools to live like no one else (now) so you can live and give like no one else (later)! I should have been blogging about our progress over the course of the 9 weeks, but since I didn't I will have to recap each step here.

Dave and his team make it super easy to get rid of debt, if you are willing to apply the principles and attack them with gazelle intensity! Cheetah: American Express and Sallie Mae gnawing at our bank accounts. Gazelle: M&I!!!!



Baby Step 1: Save $1000 for an Emergency Fund (M&I are both complete)
This is the start to getting debt free. How you ask? This emergency fund will service as the cushion we need when something comes up that we do not budget for. For example, M drives my car an hour to work each way each day; that is a ton of miles. One of these days, something is gonna bust and need fixed. Instead of needing a credit card to cover the damage, we will have an emergency fund to pay for it in CASH! Crazy, I know.

Baby Step 2: Crushing your Debt with the Debt Snowball
Getting rid of debt can be challenging and overwhelming. However, Dave walks you through the process by creating the debt snowball. You pay off the lowest debt, FIRST! ...What? You mean don't pay off the highest interest rate first?.. That's correct. Crossing off the debt with the lowest minimum payment once its paid off will be your best motivation to keep going. You'll then tack on that minimum payment to your next lowest debt payment.



M&I will be done with Baby Step 2 in about a year - hopefully less. We have about $14,500 in debt, with half of that being my car and another good chunk of that being M's one student loan. We are trying to chip that off as quickly as possible by adding any additional income back to our debt payments.

Baby Step 3: Save 3-6 Months of Expenses
This is the real emergency fund because this will cover larger emergencies. If something happens to one of our jobs or a medical emergency happens, then we won't have to fret because we will be covered.

For M&I, 3-6 months of expenses is about $6,000 - $12,000. This seems like this would take forever to save up. In reality when we aren't paying $1300 a month in debt, we will be able to save this money for our future!

Baby Step 4: Invest 15% of your household income into 401K, Roth IRAs, and other Pre-Tax options

This one is probably the hardest to wait out. Between my Dad, M, and my economics classes in college, I am aware of the concept of compound interest. I know if my Dad reads this and sees that I am not putting toward my 401k right now, he will be very disappointed. Trust me, Dad, I want to get there as fast as possible!!

We are so excited to get to this point, so we are trying to breeze through the other baby steps.

Baby Step 5: Save for up for your babies' edjumacation
This seems SO FAR away. I mean dang, we aren't even engaged! How are we even to think about this? Well, good news, we aren't. Ha! We have a lot of saving to get to until we get to this point. Good news though: when we DO get to this point, we will be debt-FREE, have ample savings, be committing money to retirement, so we can save up for our future babies (God willing) future. I say that is a pretty awesome place to be in.

Baby Step 6: Pay off that house!
Again, this is further away than the previous. However, if we play our cards right, we could save up 20%, 50%, or even 100% down for a house. Wouldn't that be nuts? To NOT have a mortgage at 30 years old?! To be debt free, to have ample savings, to be investing, married with children (hopefully!!) at THIRTY YEARS OLD! I feel like I am getting ahead of myself, but in reality that is 5.5 years from now. I try to keep 5 year plans, so why not shoot for that!


Baby Step 7: Give like no one else!
This, above all, is the most important step: giving. M&I's goal is to be able to help others play frisbee or pursue their dreams at our cost. God says in II Corinthians 9:7, "Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver." I, also, like Deuteronomy 16:17, "Every man shall give as he is able, according to the blessing of the Lord your God which He has given you."


I can only pray for a humble and giving heart to provide for others in need.

If I have at all inspired you to check out Dave Ramsey's Financial Peace University, you can check it out here: Financial Peace University. Classes are offered all over the US and online - check it out and sign up!

God Bless.