How to Get Started
STEP 1: Read The Total Money Makeover by Dave Ramsey
Our journey to financial freedom began the day we bought Dave’s book. We also bought the TMM workbook. Each Saturday morning we would read a chapter in the book and complete the exercises in the workbook.
The TMM has all the forms and guidance you will need to…
- Define your income sources.
- Determine past spending habits.
- Project future budget.
STEP 3: Pay FIXED EXPENSES from checking
Examples include…
| Mortgage / Rent | Car Insurance |
|---|---|
| Real Estate Taxes | Health Insurance |
| Utilities | Life Insurance |
| Child Care | Giving |
| Car Payment | Saving |
STEP 4: Pay FLEXIBLE EXPENSES with cash
Examples include…
| Food / Groceries | Entertainment |
|---|---|
| Clothing | Personal Care |
| Gas / Oil | Postage |
| Dining Out | Gifts |
Dave Ramsey recommends using the envelope system to pay flexible expenses.
STEP 5: PURCHASE SPENDVELOPES AND GET STARTED !
