A lifestyle & personal finance blog for South Africans who are ready to get out of debt once and for all. Learn how to improve your financial well-being & build a happy marriage & life.

Education Savings Plan

Step 5: Education Savings Plan for your children After completing the first 4 baby steps, you will now be debt-free except for your home loan {if you have one} with a fully funded emergency fund, and you are saving 15% of your income for retirement. Next up is saving for your children’s education. {We don’t have any kids yet, but we plan to be ready to start an education savings plan for them when they are born.} How much should we save for education?…

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Saving for Your Retirement

Baby Step 4: Saving for Your Retirement After completing the first 3 baby steps, you will now be debt-free except for your home loan {if you have one} with a fully funded emergency fund. Now it is time to get serious about building wealth, and the first thing to do is to start saving towards your retirement: This means you need to invest 15% of household income into tax-advantaged retirement accounts. While you are at Steps 4, 5 & 6,…

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The Full Emergency Fund

Baby Step 3: The Full Emergency Fund At this point you will be debt-free and have a small starter emergency fund. 3 to 6 months of expenses in savings Now to really blow your mind {and life-long misconceptions about personal finance}, Dave Ramsey suggests that we have a fully funded emergency fund of 3 to 6 months of expenses in savings. Before you start building investments, first save up this nest egg to protect you and your family from unplanned debt…

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The Debt Snowball

Baby Step 2: The Debt Snowball After completing Step 1 {The Starter Emergency Fund}, it is time to get gazelle intense to pay off all your unsecured debts, including your car but not your home loan {if you have one}. As a child of Sunny South Africa I have no idea what a snow ball looks like in person – I have heard that they can accumulate more snow and grow in size as they roll faster and faster downhill. This…

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The Starter Emergency Fund

Baby Step 1: The Starter Emergency Fund Why do I need this? This was the first major money mind-shift we had to make when we started our Journey in December 2012. We had always thought that when you are in debt, you have to throw everything at the debt and delay savings until later. This logic is flawed – life happens, and if you have not yet made the decision to SAY NO TO DEBT, you will likely keep on borrowing money for…

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The Total Money Makeover

ARE YOU DROWNING IN DEBT? >>>START HERE<<< This is the book that will change your life. {It has already changed ours}. It is packed full of practical real-life advice that will help you to finally bring your finances in order. Dave Ramsey has a direct and sometimes harsh style and approach towards debt, finances and the mistakes most of us make. His advice is solid and based on a biblical foundation {although this book is not aimed at Christians only}. He has…

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Drowning in inevitable debt

Times Live reported this week  that 76% of South Africans’ income goes to debt repayments. People earning more than R15 000 pm are more likely to apply for more credit – using personal loans to fund our lifestyles have become normal behaviour. Does this shock you? THE LIE: WE NEED CREDIT TO WIN. Buying things on credit is “normal & necessary”. Who do you think really wields the power in South Africa? Julius is right – this is a nation of souls living without economic…

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The Four Walls Principle

The Four Walls: Food, Shelter and Utilities, Transportation and Clothing. This is another valuable Dave Ramsey nugget. Have you ever fallen into the cycle of paying your credit card and then buying basics such as food with that same credit card? It’s a tough cycle to break and a recipe for disaster.  It’s a fine balance, that only needs one proper financial emergency or a skipped payment or two before you end up stuck.  We have personally spent many weeks without food…

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Please Understand Me!

It is very important for us to know ourselves as well as possible. We need examine our hearts, lives and the decisions that got us to where we are so that we can build a better future for ourselves. For me, the MBTI {Myers-Briggs Type Indicator} personality profile helped immensely. It helped me to understand myself so much better, and learn how to relate better to those around me. CLICK HERE TO TAKE THE TEST. Once you know your type…

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