Dave Ramsey Step One

I realize this may sound a bit common sense and it IS, its just doing it and chanign your thinking that are the hardest part i.e. credit really is a scam! but when you SAY that poeple think you are a bit looney, anyway this is NOT a get rich trick scam etc it is getting back to the way things used to be where if you dont have the money you dont buy it and you live beneath your means to ensure you never NEED credit, you save first and spend later etc etc.

Step One of the 7 step program is to get a $1000 emergency fund. I know it sounds hard to many, harder yet to some but the main part of this program is you have to have a paper budget and you have to start living dand thinking differently. Seriously the thinking part is the hardest I think because we as a society have been ingrained with so many myths and absurd ideas. My parents had HORRID finances as did hubbies and I think that you if you go by what society teaches (subconsciously) unless you have seen another way that is what you go with. Many need to sell their vehicle, its the #1 mistake, see below. Some need to sell their house because they bought too much or a bad deal etc.

Hubby wants to do this program and we are going to do it 100% but also doesnt want to be miserable (i.e. read bologna sandwich lunch and no cable in his world ha ha ha) SO we each get to keep something frivilous, I chose my gym membership and he chose cable but agreed to a smaller package and one tivo. We are giving ourselves small budgets for clothing and entertainment in a month or so but for february we are on a strict no spending rule to see exactly what we can do if we reallly try.

I will list ideas that we have for saving money in hopes someone might get an idea or better yet leave me another idea, we are tapped otu of ideas! Another way to start getting that 1000 is to sell sell sell, it is recommended in Dave's words to "sell so much stuff the kids are worried they are next" LOL. We have went through our house and part of our basement and have a room chocked full of 'stuff' to sell, we also have a bit of stuff in storage at my sister in laws that we moved out in an attempt to declutter the house and get ready to sell our house, my thinknig is if its in storage it is almost certainly something I dont 'need' and most of that will be sold. You can buy more stuff later when you have MONEY!!

OK here is some myth busting Debt has been MARKETED to us in so many forms and so aggressively since the 1960's that to even imagine living without it requires a complete paradigm SHIFT.

Myth: Car payments are a way of life, youll always have one truth: staying away from car payments by driving reliable used cars is what the typical millionaire does. thas is HOW tehy became millionaires. Average car payment is $384/mo if you were to buy only what car you can afford and invest the $384 month instead you would have 6 MILLION dollars at age 65

Myth: you can get a good deal on a new car truth: a new car looses 60% of its value within 4 years. This is the largest purchase a consumer makes that goes down in value. Do the math: a new car selling for $28,000 on average will loose $16,800 of its value in 4 years. You are LOOSING $350 per month in value!!!! Some ideas we have: cancelled our movie rental memberships cancelled hubbies gym membership move to a credit union (no fees, higher % rate on savings and checking) carpool hubby pack lunch (I already do) no more organic foods and fu fu stuff--me! shop and plan menu according to sales not whims join coupon website and research ads at different stores not one stop shopping use more bleach vinegar baking soda, less cleaning agents kiddo remains in garage sale clothing (have to buy for whole year in spring!) turned down thermostat ok lots more but I'm on brain drain, give me yoru ideas