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.

STEP 2: Write your budget (Income / Expenses)

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 !