We fell around  in an ever-deepening hole of debt, so clueless, for the first six years of our marriage – until we discovered Dave Ramsey’s plan at the end of 2012.

The Seven Baby Steps

  1. $1,000 In an Emergency Fund {about R5 000 – R10 000 in RSA}
  2. Pay Off All Debt with The Debt Snowball
  3. 3 to 6 Months Expenses in Savings
  4. Invest 15% of your income into Retirement Plans
  5. College / Education Funding
  6. Pay Off Your Home Early
  7. Build Wealth and Give!

It may sound so simple, just looking at the list like this, but it took me more than a year of listening to the Dave Ramsey podcast every single day before I started to really “get” this. Our understanding of debt and finances were so very naive and bent by our deeply indebted culture’s thinking patterns.  {Get the podcast here.}

In our first year of following the plan, we were able to reduce our total debt by 9%, cut up our last credit card, and refused to make a further new cent of debt, no matter what happened. This year we hope to bring down the total debt with about 30%, and next year finish off whatever is left. We are looking forward so much to do our DEBT FREE SCREAM when we finally beat this thing!

I will attempt to further explain the steps, as we understand and apply them here in South Africa, in future blog posts.

Who is Dave Ramsey?

See: www.daveramsey.com

He is not as well known in South Africa, but I have seen some of his books were adapted for SA readers. {Will still look into that}.

In short, David Ramsey is an American financial author, radio host, television personality, and motivational speaker. His show and writings strongly focus on encouraging people to get out of debt. He is also a born-again Christian. He describes his plan as both “common sense” and bible based wisdom.

Financial Peace University

In thousands of churches across America, you can attend a nine week in-depth class called “Financial Peace University” where people can learn the principles of getting out of debt and winning with money. This information is also available as an online class on the website, and in the books “The Total Money Makeover” and “Financial Peace”.

Click here to buy The Total Money Makeover, South African Edition by Dave Ramsey.

Dave Ramsey on CNN:

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