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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