![]() I also want to invest more than 15% of my income for retirement, and I haven't decided whether I want to pay for my future kids to attend college, should they choose to attend. After weighing the pros and cons, we decided it would be worth the expense for his career. I've also learned through trial and error that the debt avalanche method can motivate me better than the debt snowball method.Īlthough I avoided student loans for my undergraduate education, my husband and I agreed to take out loans for him to attend graduate school. Now that I'm in my late 20s, I've decided to build an emergency fund with at least three months of expenses (instead of Ramsey's recommended $1,000) before tackling lower-interest debt, such as student loan payments. I also have no problem putting expenses on a credit card and immediately paying it off so I can accumulate travel points. ![]() That's when I realized something: His baby steps just weren't the right fit for me anymore. I kept those teachings in the back of my mind for over a decade, until I finally reread "Total Money Makeover" in 2019. So I chose to attend a college that wasn't my first choice, but offered me a significant academic scholarship. Unlike many 18-year-olds applying to colleges, I had a decent understanding of how student loans worked. Ramsey's warnings against debt also helped me steer clear of going into student loan debt. ![]() (Sorry, Dave, I still ended up getting a credit card! But at least I waited until I was old enough to understand how debt works. Starting my financial education like that has benefited me in some ways over the years.įor example, learning about the dangers of high-interest credit card debt scared me off getting a card until I was in my mid-20s. My personal and financial values have changed with age I didn't use his rules to make repairs to my finances - but I did look to them for preventative maintenance. I was still a minor, I didn't have any personal debt yet, and I had no plans to buy a home anytime soon. I didn't understand the significance of some of Ramsey's stances in high school. (Although if you've already developed a bad score, he does say you should work to improve it.) If you want to buy or rent something that requires a credit check, you should show other proof that you're financially responsible. In fact, Ramsey doesn't believe you need a credit score at all. When you read "Total Money Makeover," you'll also learn that Ramsey has an inflexible no-credit-cards rule. One of Ramsey's most popular books, "Total Money Makeover," explains these steps in-depth. Save for your children's college educations Invest 15% of your income in a retirement fundĥ. Save three to six months of expenses in the emergency fundĤ. Use the snowball method to pay off all debt, excluding your mortgageģ. Save $1,000 to begin your emergency fundĢ. Here are what he refers to as the seven "Baby Steps":ġ. As I had grown up, my worldview had changed - so why was my main financial mentor still the same person I had looked to when I was 16?ĭave Ramsey has seven steps for getting out of debt and building wealth, and they are designed to be followed in order. But in my 20s, I realized something: Ramsey's values didn't align with my own anymore. His show and publications aren't exclusively for Christians, but his identity as an Evangelical Christian is a defining aspect of his brand.įor years, Dave Ramsey was the main person I looked to for financial advice. Then I attended a money seminar at my friends' youth group my junior year.īoth the Christian school and non-denominational church turned to one famous author to teach teens about money: Dave Ramsey.ĭave Ramsey is a popular businessman with a radio show and numerous books about personal finance. ![]() (We weren't as open about sensitive topics like money back then as we are now.) But I had a natural interest in the subject, so I set out to learn more during high school.ĭuring my sophomore year, I enrolled in a personal finance class at my Christian high school. Growing up, I didn't ask my parents about personal finance very often. By clicking ‘Sign up’, you agree to receive marketing emails from InsiderĪs well as other partner offers and accept our
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