Live Debt Free

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Live Like No One Else

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Live Like No One Else“Live like no one else so later on you can live like no one else.” – Dave Ramsey

The Dave Ramsey quote explained

I suppose understanding this quote isn’t rocket science, but for whatever reason I was little slow to appreciate its rich truth.

What does he mean by living like no one else?

Ponder it for yourself then read my explanation; if you’re familiar with Dave’s teachings you have heard it before . . . but have you ever meditated on it?

After a few years of hearing this quote often (I’m an FPU church leader), one day its meaning hit me on a deeper level.

For years Betsy and I have been sacrificing present wants for a debt free lifestyle in the future, which, though it’s growing in popularity is still an anti-cultural conduct. Thing is, after you have been living this way for awhile it’s easy to overlook the eventual benefits. Not only that, it’s easy to become frustrated with the sacrifices now and again.

Not too long ago, while leading an FPU class, the quote hit me afresh, “Matt, you’re living like no one else so that later on you get to live like no one else.”

The simple quote reminded me that our sacrifices will pay off, and gave me renewed appreciation for how they already have.

Ways we live like no one else

Here are a few ways me and Betsy “live like no one else:”

  1. paid off and cut up all our credit cards
  2. stopped buying things we don’t need
  3. canceled cable tv
  4. canceled my cell phone
  5. drive paid off vehicles
  6. using cash envelopes
  7. sold our house and went from a $1,450 housing payment to a $650 payment.
There are other ways we save but these are the biggies. Looking back over them reminds me of all the ways we live outside the culture so we can have greater freedom and peace of mind. It inspires me to continue on. It motivates me to keep pushing the limits. It reminds me of my calling to help you understand and embrace biblical stewardship so you can experience the blessings of obedience to God’s Word.

What about you?

We’re sacrificing now to benefit later, but what about you? Are you indulging, perhaps trying to balance your lifestyle with those around you? Careful, it’s really easy in our culture; much easier than practicing wise stewardship.

If you are new to this I encourage you to be on your guard continually; but don’t worry, after awhile it becomes instinct. Just keep going.

If you’re stumbling I challenge you to reevaluate your goals . . . why did you set them and what do you have to do to reach them?

Encourage yourself to live like no one else so that later you can live like no one else, and whenever possible surround yourself with people who are choosing to do the same. Fellowship with the likeminded can provide a shot in the arm in times of weakness and need.

Ways you can live like no one else

How can you live like no one else now so you can live like no one else later? Don’t let me answer for you, answer for yourself.

Use our experience to find inspiration and the motivation to make changes. Start small and work your way up, remember that a journey of a thousand miles begins with a single step.

Find a financial peace university course close to you and sign up.

Talk to your family about financial fundamentals and get them on board. Apologize for your lack of leadership, take full responsibility, and ask for their help. Show them where you are, where you want to be, and how to get there. Be humble if you want to be successful, pride will get you nowhere.

Enjoy yourself

Sacrifice does not mean you have to stop having fun. Some of my best memories are of experiences made on a shoestring budget; if you don’t use money you have to use creativity – which always makes for better memories.

Hold fast to your goals and inspire others. Trust me, God will bless your sacrifice and stewardship!

Is Financial Peace University Worth It?

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Is Financial Peace University Worth It?This is a topic I hear come up every now and again, so let’s discuss it to help those contemplating FPU.

In case you are unfamiliar, Dave Ramsey is the host of the nationally syndicated personal finance radio show The Dave Ramsey Show.

He is the New York Times best selling author of Total Money Makeover, Financial Peace Revisited, and The Money Answer Book.

And among other things, has developed the incredibly popular debt relief system Financial Peace University.

Today let’s focus on FPU and whether or not it’s worth the initial investment of $100, or whatever the going rates are these days.

Is FPU worth the money?

Some people argue that they wouldn’t, or couldn’t, attend Ramsey’s Financial Peace University if they wanted to because it costs too much money; and since they can’t afford their bills, they’re not about to shell out $100+ for some stupid debt book. Others say FPU is the best thing that ever happened to them and that the financial stuff was only a smidgen of the blessings they received from attending.  Still others may rant about how Dave Ramsey is rich enough already, how he has built an empire off the chronically indebted, and that he should be ashamed of himself.

Before we get to far into the discussion let’s be sure to evaluate what the cost of the program truly amounts to. What is $100 actually worth anyway… what can it buy? A month, maybe two months of cable television.  A month, maybe two months of a mobile phone contract.  One week’s worth of groceries… maybe?

You get the point.  Before we let the sticker shock of a cool Benjamin cloud our perception of value or worth, it is imperative we patiently evaluate the costs and benefits of the purchase.

What do you think?

My history with Dave’s programs officially began in November of 2009.  At that time I had already been running Debt Free Adventure for 11 months and was fully immersed in everything personal finance.  So why did I enroll in the class?  To get my wife and I on same page financially.  And it worked. In fact, it worked incredibly well.

Was the experience worth the $100 cost of a life long membership in the program?  Uh… yeah, without a doubt.  The value of the FPU program will be paying us back for the rest of our lives.  Because of that fact… I recently decided to give back to the program.  A few weeks ago I signed on as a volunteer FPU class leader, and have already watched God bless us amazingly because of it.

Is Financial Peace University worth the $100 you’ll have to spend to get it?  Yes.  It absolutely is. And Dave Ramsey – just like you, me, and everyone else – fully deserves to earn money from his honorable labor.  After all, what is $100 compared to a life of financial ruin anyway?  Hardly a drop in the bucket I’d say.

DIY FPU?

Is it possible for a group of financially struggling people to form a strong PF community on their own?  Yes, but I’m sure the rates of success would be much lower.  I don’t have any stats to back that statement up, but consider this… if it were easy to do this on their own, wouldn’t people be doing it in droves?

The truth is, starting from scratch to build community, formulate debt plans, and work those plans through to completion is doable for some, but not for many.  For everyone else there is FPU and other programs like it (Crown Money Map, etc.)

In closing

If you have been on the fence about trying FPU because you’re reluctant to pay the money… go do it, I am willing to bet that you will not regret your decision.  After all, what is $100 compared to financial peace?

If you’re the one still whining about not having $100 to take the course, I have a solution for you.  Call your service provider and cancel your TV service for a month, and use the $100 to get your financial life in order.

Without sacrifice there is no benefit, and the small sacrifice of $100 is nothing compared to the dividends FPU enrollment will pay for years and years to come.

So is Ramsey’s FPU worth the sticker price? Well… I guess you’ll never know until you go see for yourself.

https://debtfreeadventure.com

Dave Ramsey’s 6 Steps For Dumping Debt

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Dave Ramsey's 6 Steps for Dumping DebtI first attended Dave Ramsey’s Financial Peace University in the winter of 2009; ever since I’ve been leading FPU in our local church and strongly recommend the program to anyone interested in dumping debt. Yesterday our class reviewed the week 4 lesson titled “Dumping Debt” which highlights Dave’s six steps to getting out of debt. Let’s list the steps and analyze them now.

1. Quit borrowing money

How do you get out of a hole?

  • Stop digging – You have to stop overspending before you can reduce debt and build savings.
  • Lose the shovel – Whatever your “shovel” is, lose it. If you have a problem with credit cards – close em, shred em, and forget em.
  • Start climbing out – Now that you’ve stopped digging and lost your shovel you need to climb out of the hole. You’ll learn how in the steps that follow.
The bible says, “The rich ruleth over the poor, and the borrower is servant to the lender.” Proverbs 22:7. If all your extra money wasn’t going toward debt, what would you do with it? Would you save more, give more, enjoy it more? Think about this a bit before moving on to step 2.

2. Start saving money

Building an initial Emergency Fund is fundamental. While you are forming your budget you must set money aside for budget busters – unexpected things happen to everyone, so they’re not really unexpected are they? Be prepared for emergencies or be continually caught off guard and financially vulnerable… it’s your choice. Don’t worry about saving a ton, focus on building a temporary cushion that suits your situation. Dave recommends $1,000 as a starting point, me and Betsy saved $3,000. Do what works, just make sure you do something (save at least a $1,000).

3. Prayer works

What can your God do? Hopefully you answered, “Anything.” God promises to intervene for those who love Him and obey His commandments. Need to polish up on His commandments? Make bible reading – and prayer – a part of your daily routine. Doing so has given us peace of mind and increased blessings. Remember that God is righteous and we are not; to receive His blessings we must approach Him on His terms… He’s waiting for us.

“Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you: For every one that asketh receiveth; and he that seeketh findeth; and to him that knocketh it shall be opened.” – Matthew 7:7-8

Prayer is powerful, start tapping into it.

4. Sell something

You may think you have nothing valuable. I wager that 99% of the people reading have something of value to sell, you just have to put your mind to it. Selling stuff is hard for most people, and the first item is always the hardest. The more you sell the easier it gets and the lighter you feel. Start with an item of decent value that you want to keep but seldom use; for us it was our kayaks. In Michigan the summers are short so our boats would only see the water a handful of times. We made the hard decision to sacrifice wants for needs (financial security), created the Craigslist ad, and ended up selling them to friends who live on a river. We recouped our initial investment, gave the boats a loving home, and padded our bank account. Subsequently we sold our pop-up camper to a happy home for the same amount we paid for it. Next up, my scooter.

The point is, you have things you can sell. Focus on turning infrequently used items you want into the cash you need. I promise getting rid of stuff feels good afterward. I challenge you to prove me wrong.

5. Make extra money

To make extra money you can take more hours at work, get a part time job, or start a business on the side. There are many ways to earn extra money but I encourage you to do something that excites you. When first digging our way out of debt me and Betsy were both salaried employees so picking up extra hours wasn’t in the cards. I’m not huge on trading time for money so I opted instead to start a side business focused on work I had to do once that would continue to pay us far into the future. Do what works best for your situation, just be sure to do something.

Aside from making extra cash, developing multiple sources of income is wise because it diversifies your risk of job loss. Be creative and don’t be afraid to fail.  Who knows, you even may find a new career.

6. Use the debt snowball

Last but not least is the debt snowball. Whether you decide to follow Dave’s FPU plan of paying debts in order from smallest to largest, or opting instead to pay the highest interest debts first… just make sure to put your snowball in place and follow through with the plan.

The debt snowball is as simple as listing your debts and prioritizing their repayment in a way that works best for you. Dave recommends paying debts in order from smallest to largest so you have “little wins” along the way. To specify, you pay minimums on all debts except your smallest, which you throw any extra money toward. Once it’s paid off you move on to the next smallest debt adding all extra money to its minimum payment, then the next, and the next. The amount you pay gets larger and larger (like a snowball) as you pay each debt off. Eventually you are out of debt which means you can actually keep the money you make and use it however you wish. I recommend using it to save more, give more, and experience more.

What will you do when you’re out of debt? It’s a great question to ask yourself often as a source of motivation to continue dumping debt!

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