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 !

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