Do you have a car payment? A line of credit? A mortgage? Do you have student loans? If you said yes to any of those questions, this post is written specifically for you.

I can’t figure out when or how I came across Dave Ramsey, but I am so grateful I did. Dave is the voice of debt repayment. Every day for three hours a day he hosts a radio show that is broadcasted live on youtube, facebook and is later offered as a podcast anywhere you listen to your favourite podcasts. He teaches millions of people how to get out of debt and how to be debt free. By following Dave Ramsey’s baby steps it is possible for anyone to become debt free. The hubs and I are on his plan and are currently on Baby Step 2 and crushing our goals hard.

So why should I worry about debt? I make my monthly minimum payments, I’ve never been late on a payment and my credit score is awesome.

Well, with most debt, the longer you have it the more money you throw away in interest payments. Banks WANT your money, and interest is their bread and butter. As Dave says, your greatest wealth building tool is your INCOME, and debt makes this number lower the more you owe! Imagine having no car payments, imagine keeping all the money you make? Yeah, it’s possible, and the Dave Ramsey Baby Steps will get you there.

Baby Step 1: $1,000 to Start an Emergency Fund

Sell anything that isn’t attached to the floor, make a budget and cut back on expenses. Save the $1000 as FAST as you can. If you already have a savings account, take everything out of it and leave $1000 in it and put all the rest to your debt. The idea for this fund is that it’s an EMERGENCY fund. A birthday is not an emergency, because you knew it was coming up. With this in the bank you won’t have to go into debt if something were to happen.

Baby Step 2: Pay Off All Debt but the House

List all your debts from the littlest one to the biggest one and list your monthly minimums. Every month, make a new budget with your partner and attack that little debt with a vengeance! Throw every last dollar you can at the little one until you pay it off. When you do, take all the extra money you were putting towards the debt AND the minimum payment you were making and add it to what you pay to the second debt on the list! This is his snowball method and the idea is that the motivation of knocking off the small debts will inspire you to keep going while freeing up more money to pay off the larger debts!

Baby Step 3: 3 to 6 Months of Expenses in Savings

Now you are debt free! Congratulations!! Time to build your emergency fund to a full fund. This means, add up all your expenses for the month. Mortgage, food, utilities, insurance etc and multiply that number by how many months you want to save. He recommends 3-6 month’s worth. Now this is your new savings goal! This will allow you to be prepared were life to throw a huge wrench your way. This and all his steps are also available on his website.

Baby Step 4: Invest 15% of Household Income Into Retirement

Now that you have no payments and a fully funded emergency fund, time to make that money work for you. Invest!! Take 15% of your gross household income and invest it into a Tax Free Savings account, your work’s matching RRSP etc. Remember, time is of the essence and you will benefit from compound interest when it comes to this step. Stay consistent and soon you will be a millionaire. It’s just math!

Baby Step 5: College Funding for Children

Now that your future is taken care of thanks to investing it’s time to start saving for your kid’s post secondary education! The Canadian government has something called the RESP and by contributing to it the government matches 20% of your contributions up to $500 a year. (aka, free money!) This is a great way to start saving for your child’s education.

Baby Step 6: Pay Off Home Early

Now, there’s just one more debt standing between you and a truly debt free lifestyle. Can you imagine not having a mortgage payment?! I’m freaking out over here just thinking about it! Any extra money you put towards your mortgage is going to shave off so much interest and so many years off your mortgage! This is a huge one, and usually, especially in Canada, we don’t often find mortgages for 80 or 90k like our neighbours to the south do, so our debt here is quite large. Just keep at it. You have no payments, your life is well set up after following all the baby steps, so enjoy your money while paying down your house faster!

Baby Step 7: Build Wealth and Give

Max out your RRSP and TFSA investment contributions per year, and have FUN. As Dave says, you live like no one else so that later you can live and give like no one else. Become incredibly generous, and do whatever you want. You have done so well. Congratulations!

All the baby steps and more on the entire idea behind Dave’s plan, including his own personal story, is detailed in his book the Total Money Makeover, which I could NOT recommend more. I actually wrote about My Top 5 Personal Development books and you better believe this was on that list!

Best of luck on your journey. Are you following his plan? What baby step are you on?

 

 


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I turned 27, and no, I am still not an expert at life (is anyone, really?) but I have learned a few life lessons that I wasn’t entirely aware of in my teen years that I wish I had known. I wanted to share them, in case any of these resonated with some of your own life lessons. Let me know in the comments what’s one thing you’ve learned in your life that you didn’t grasp when you were a teenager?

Let me know in the comments what’s one thing you’ve learned in your life that you didn’t grasp when you were a teenager?

1. Energy is real, and it’s important.

The energy we surround ourselves with every day is something to take note on. The energy we put out into the world with our thoughts will come to us. So be positive and surround yourself with positive, good, cleansing and healing energy and remove yourself from situations where you feel your energy being sucked out.

2. Take a compliment.

Being self conscious, having body image issues, feeling less then, or being insecure all lead to very many different ways of taking a compliment. Do you compliment back, do you believe they are just telling you that because they feel like they need to. Do you look down in the dumps and that’s why they said something nice to you? The amount of damaging thoughts we have sometimes it’s unreal. Just say “Thank you”.

3. Enjoy the time with your loved ones.

People go unexpectedly. They’re here today and gone tomorrow. There’s things I wanted to say, wish I would have said and long for just one more hug and smile from them. I know they’re in the most incredible spirit realm. I know and trust they are happy and calm and with all the goodness that are other pure souls, but if it’s taught me anything it’s to cherish those souls when they are around me in this plane. To hug and cherish every good time, and love deeply.

4. Green veggies are for all.

It doesn’t seem like that long ago that I lived off of morning sugary cereals with hormone filled cow milk, lunched on white bread (sugar) with a cold cut meat and some cheese and dined on the only proper meal of my day which was my mom’s home cooked dinners of usually steak, potatoes and rice, avoiding salads at all costs. My life has done a complete backflip, or would this be considered a front flip… I have educated myself and continue to do so (because really there’s just so much to learn) on the importance of food, the importance of real ingredients and the importance of eating locally grown produce. I’ve stopped eating land and air animals and my health has become of clear importance in my life.

5. Love fully and deeply.

There was once a quote I read that said something like “The one that loves less has more power in a relationship.” When I was young and was just getting over the biggest heart break of my teenage years I believed these words. I thought they made perfect sense. If I love less I’ll be protected, if I love less, I can’t be hurt.

But this, young me, was foolish and wrong and thankfully, you understood what true, real, and passionate love was all about and power was never a part of that homemade description. I have learned of love in these 27 years, and I will continue to learn from it when new milestones occur, and when there are little ones to love, but for now I am grateful for the lessons of love I have had so far, for I love fully, and deeply and with no holding back because there is no fear of ever being hurt.

6. If you don’t believe in yourself, no one will.

You have to believe it, because at the end of the day, no one else belief matters quite like yours. So trust yourself. This one took a while to learn.

7. Try something before you say you don’t like it.

This was not true of me in the past when it came to food that’s for sure, but when it comes to life, heck yes. I’m a trier. I try a bit of everything, and sometimes I get really passionate about something new and give it my all. Sometimes I burn out and lose focus, and other times I don’t. This is how you learn more about yourself, about what you’re like and about what you can do! Try everything! Say yes to the opportunity. Figure it out along the way!

8. Done is better than perfect.

Accomplishing something is better than quitting because you don’t feel like it will turn out quite how you want it to. I’ve been guilty of this so so so many times in the past. Why write that novel if I don’t think I’m very good? Why be a coach when I don’t have a facebook fan page. It doesn’t matter, you do it because you had told yourself you were going to, and breaking a promise to yourself just tells the universe you are not that important.

9. It’s all in the process.

The destination is pretty freaking cool. But the journey you take to getting there is where the story lies, it’s where the meat of the lesson is in.

10. Do the work.

You want to be something, do something, achieve something? Do the work, make hard decisions, wake up every day with full commitment and intention.

11. Knowing WHY is the most important piece of knowledge.

It doesn’t matter how you are going to do something or when, doesn’t even matter what you are going to do if you don’t know why you are doing it. When your why is strong you will not fail, you will not quit and you will give it your all.

12. I have a lot more to give of myself, and to be.

I am young, although my mind fights me on that one and whispers how close 3-0 truly is. Truthfully, I am excited for what is to come and how my role as a woman will change over the next few years. I am in love with the idea that I will become someone else, a new version of me when I become a mother and am looking forward to all that I will gain from it.

13. Focus on what you can control, and only that.

I’m a planner, and plans are always written down, on paper, in ink. Not erasable, and crystal clear. Life though doesn’t always get the memo, and sad things happen that surprise you by morphing into wonderful lessons on patience and strength.

14. Lighten up, and don’t take yourself so seriously.

It’s ok to be silly, it’s ok to joke around and have a funny conversation just because and not because it’s tied to a specific goal. Breathe, live and enjoy.

15. Every person has a story.

It’s complicated and raw, it has hardships and it has beauty. It seems easy to some, and impossible to others. But they are all real and they are all special and they all have meaning.

16. The world will only change when you do.

Complaining and sharing depressing news about the state of the world on social media won’t get us anywhere. If there’s something you want changed, you want people to be kinder, more giving, more self less, more trustworthy, then you have to start with yourself. Change yourself and you can change the world.

17. Finances are something to get educated about.

How I wish finances were a topic in high-school, in middle school even, and it should be mandatory for every college student to take a course in. For someone who has a slight anxiety issue when it comes to money, the only way I was able to have peace of mind was when we got our finances in order. There is endless information on the internet but for the most part this statement rings true: “Don’t spend what you don’t have, and give every dollar a job.”

18. Vacation and let loose.

Take time for yourself and your relationship. Disconnect and unwind. Do nothing for 3 days and lounge in your PJs, no matter the style of vacationing you prefer. Make the time, give it importance because these are moments our soul needs to reset.

19. Smiles are powerful.

A stranger on the street, someone passing you on the hallway. Smiling makes people’s lives better. They can save lives, they can make invisible people seen. They have power we do not understand.

20. Learn more life lessons

Be a sponge, learn from everyone, gather inspiration from the world. Teach yourself about life.

21. Gratefulness is key in attracting good things in life.

The law of attraction, have you heard of it? Well did you know it works just as well if we complain and think negative thoughts? We’ll just have more of that, which nobody wants. Instead we need to focus on being grateful for all we have, every day, every moment. When we practice this every day we will see the things we are grateful for will multiply!

22 People deserve a second chance.

People have wronged me, they’ve been cruel, and horrible. They could be family, they could be friends, either way. Bless and release. If they care enough to try again, to rekindle what was there, and you feel safe in doing so, people deserve another chance. You may be surprised with who they’ve become!

23. I will never escape stress.

Stress is felt by everyone in many different ways, and accepting that it’s something that will morph and grow with me is something I have learned to understand. Management of stress and understanding how it manifests are all topics to learn more about and knowing that just because you don’t ‘feel’ stressed doesn’t mean you aren’t. Sometimes it is reflected in a weak body part or muscle.

24. Your passion is everything.

Find what you are passionate about and when you find a way to do that every day, the amount of happiness and joy it will bring into your life will be incredible and noticed by all.

25. Minimalism is the key to many issues.

Buy less things, accumulate less things, spend money on experiences. Collect memories. Live freely.

26. Family is more than blood.

Sometimes you find family along the way.

27. I am enough.

I need only be who I want to be. There is just one person who can be me, and it’s me. I am intelligent, honest and caring. I am my friend, and I am enough.

27 Life lessons. In 27 years. If I live to be 100, I’ll have learned 73 more. Ooof, long way to go! So much to experience, so much to learn.

Much love,

Mariangelica

 

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