The Ramsey Method Got Me Out of Debt (And Can Help You Too)
If you’re in a situation like I was…sick and tired of carrying the weight of debt on your shoulders, and barely able to admit that you can hardly breathe from the financial stress, I’ve got a personal recommendation for you!
Go pick up a copy of The Total Money Makeover by Dave Ramsey and follow his Baby Steps. For real, his philosophy on money and his understanding of the psychology behind it are both incredibly sound.
When I finally let go of my resistance to the book (which took a year, by the way…don’t make the same mistake I did… life’s too short), I felt relief. I had a plan.
Here are the first two Baby Steps that helped me dig out of debt. I highly recommend listening to Dave Ramsey’s podcast, too, to get a feel for all seven steps and also to get a compassionate kick in the butt. He’s a no-nonsense, tough-but-kind-hearted guy who isn’t afraid to speak truth, no matter what.
Step One: Save $1,000 ASAP.
This was really challenging for me at the time. I was living paycheck to paycheck. It took a ton of discipline and side hustle to knock this one out. I was so proud of myself when I did.
Step Two: Pay off your debts from smallest to largest.
A lot of people argue that you should pay off the highest interest rate first but the Ramsey crew says that’s bogus cheering you on to pay off your debts in order of smallest to largest. They’ll challenge you to become debt-free in 12 to 18 months, and in that short amount of time, the extra interest is pretty marginal. What matters more is the psychological win and that you get momentum fast. As you knock out smaller debts, you roll that money into the next one, gaining traction with every win. They call it the “debt snowball.” Honestly, I didn’t care one bit about the interest rates. I knew it was my emotional state that got me into this mess, and that regulating it was what would get me out and the quick wins helped with that!
So, consider this my very unpaid (but very heartfelt) commercial for Ramsey Solutions, lol. I’ll probably be talking them up even more in the future, because they truly helped walk me home at a time when I was scared out of my mind and struggling to face my financial reality.
I’m even looking into becoming a Financial Peace University facilitator so I can help others experience the same transformation. And I’d love to sponsor their Money Foundations course at our local public high school because imo this stuff should be taught way earlier. They'll teach you that no matter your age, how much debt you have, or how hopeless it feels — that you can do this. Go get ‘em!