Dave Ramsey on Holiday Shopping – 4 Tips to Celebrate Debt Free
Why Go Into Debt to Celebrate?
If the holidays are supposed to be the happiest time of the year, why does it often seem like the most stressful time of the year?
Financial stress is at the top of many people’s list this time of year.
Many folks just don’t have extra money available to do all the celebrating and shopping they desire. Yet the world puts the pressure on to buy more and keep up with Joneses; even if it means going into debt. Throwing it all on the credit card seems to be the solution.
Although after the New Year, the bills start coming in and the struggle just to pay the minimum payments begin. The struggle to get the debt paid off can go on late into the year or longer. And that only adds to the stress the following holiday season. So instead of planning and enjoying the new season, there still remains the hassle of left-over debt and the stress that goes with it.
Are you ready to end the cycle and say no more debt, no more credit? Then it is time to make a plan early in the year and stick to it so you can avoid piling up mounds of debt on credit cards.
Dave Ramsey provides the following holiday shopping ideas and tips for celebrating debt free this year:
Look for deals online before heading to the stores. Find out what the prices are at the stores you plan to visit and don’t waste your time shopping at one if you know another store down the street has a better deal.
2. MAKE A BUDGET
It’s common sense stuff, but amazing how many people have no financial plan for their spending. And when they go shopping they are like kids in a toy store buying the first flashy toy that catches their eye.
If you plan to work your way out of debt, it requires becoming disciplined during the holiday season. If you must buy for many, keep it simple and stay within your means. Don’t get caught up in the mindset that bigger is better or it will just come back to bite you when the bills start coming in after the new year.
3. USE CASH
As Dave always says, you spend less when you use cash. So stop by the bank or ATM to get your pre-planned amount of shopping cash before you hit the stores. And when it’s gone it’s time to stop shopping.
If you’ve planned ahead and followed the previous two steps then using cash should be easy. You will know what you need to buy and how much it will cost before you start. Planning time well spent!
4. START NOW – PLAN EARLY
If you haven’t made a plan this holiday season, then stop now and take some time to evaluate your situation and make a budget. Look at the big picture and consider the outcome of your choices this holiday season. Shop smart and keep it within your means.
And if this holiday season caught you off guard once again, well remember, it is never too late to try again. Next year you can make better decisions and do things differently.
Happy Holidays to All & a Very Merry Christmas!
God bless you,
Budgeting – Dave Ramsey Money Makeover
The Power of a Budget and Baby Steps to Beat Debt and Build Wealth
His path to wealth is based on seven, simple, common sense baby steps.
However, before taking the first step, he teaches the importance of a written monthly budget.
Ramsey’s book “The Total Money Makeover”made the NY Times Best Seller list. He also teaches these principles in other books and courses. Plus you’ll find him on the radio, TV, at live events and his website is www.daveramsey.com.
Dave Ramsey’s recommended baby steps are below:
1 – $1,000 to Start an Emergency Fund
We all know it is only a matter of time before the unexpected emergency happens. This is for the unexpected things we can’t plan for.
2 – Pay Off All Debt Using the Debt Snowball
List all of your debts and begin paying them off starting with the one with the smallest balance. Once the first one is paid begin using the “extra money” toward paying the next on the list, etc.
3 – 3 to 6 Months of Expenses in Savings
After the first two steps are completed it is time to start building your full emergency fund.
4 – Invest 15% of Household Income Into Roth IRAs and Pre-Tax Retirement
When you reach this step, you’ll have no payments except your house. Now it is time to get serious about building wealth.
5 – College Funding for Children
Make sure you have already started investing 15% of your income in step 4 before saving for college.
6 – Pay Off Home Early
Now is the time to begin putting all extra money toward the mortgage to realize the dream of life without a house payment.
7 – Build Wealth and Give!
Time to build wealth and give like never before. Leave an inheritance for future generations and bless others with your excess.
video clip of Dave Ramsey:
Our society today is lacking in financial common sense and discipline. Everyone wants to have things “now” but figure out how to “pay” later.
There is hope though, and there is help for anyone who wants it. I’m always very encouraged to hear the success stories of those who have gone through the Dave Ramsey course.
If your finances are a mess, it is not too late to reach out for help, make a plan, and begin taking the first step to turn things around! 🙂
May you be blessed to be a blessing!
God bless you always,
Dave Ramsey Town Hall for Hope Meeting
This post is a bit delayed, since the Dave Ramsey Town Hall for Hope meeting was on Thursday 4/23. I wanted to blog sooner but I had surgery the next day on Friday and have been recovering…
Now that I am back on my feet and playing catch-up, I want to help pass on this much needed message of hope. Our church hosted the Town Hall for Hope telecast and it was encouraging. With so much doom & gloom everywhere you turn regarding the current economic condition, a spirit lifting message of hope was gladly received.
Dave has a real back-to-basics, common sense approach to not only financial affairs, but life in general. He presents it with a positive and humorous outlook and includes clear steps of action. It is always great to leave a meeting “feeling” better, but if you don’t also leave knowing what action to take, the feelings will fade and nothing in your life will change!
There was a lot presented that night and some others have put together great summaries and reviews. Just do a quick search online. You’ll also want to check out the Town Hall for Hope website at www.townhallforhope.com that has additional resources. I’m assuming a video replay will be available soon.
I do want to make note of the action steps Dave left us with though…
3 Steps for those Struggling with Hope:
1. Get Up & Take Action! – Don’t rely on anyone else or the government to fix your problems. Take control and take personal responsibility of your future in all areas and start with yourself and get your own house in order.
2. Don’t Take Part in Loser Talk!!! – Stop listening to all the negative loser talk from people that are going to suck the life out of you and keep you in fear. Get around people that are positive and going to encourage each other and at the same time hold you accountable. Speak hope. (Dave cracked me up when He said “The average millionaire can’t tell you who got thrown off the island last”. :0))
3. Start Giving! – Giving takes the focus off yourself and this does wonders for your hope. Giving of your time or money helps change your mindset for the better. America is #1 in giving, but we can do even better.
There is a family at our church that shared how they were $60k in debt and within a few years after going through Dave Ramsey’s course, they recently became debt free!
It always helps me to hear of others that overcome. I stepped out into full-time self-employment a year ago and also started taking some online classes. So with the added expense of classes, mixed with cost of starting a business and temporary drop of income…on top of already being a single parent of two teenagers, lets just say my personal financial situation is not where I want it to be.
I’ve never stopped giving of my time and money though. Never stopped tithing and putting God first. I truly believe my situation is changing for the better everyday. :0)
My favorite verse is Hebrews 10:23 from the NLT:
“Without wavering, let us hold tightly to the hope we say we have, for God can be trusted to keep His promise.”
Here’s to the growing prosperity in your life as you keep your hope in God!
P.S. I’d love to hear your comments on this meeting or if you’ve used any of the Dave Ramsey materials.
You can also find new and used deals on the majority of his products from The Total Money Makeover to Financial Peace University, books, software and DVDs at Dave Ramsey Resources