Tuesday, September 22, 2009

Getting Out Of Debt

It is my personal belief that debt is a tool used by Satan to discourage God's people. When drowning in debt, especially consumer debt, we are so depressed and downtrodden that it renders us ineffective for the Kingdom's Work. That's my opinion. And, in my situation, it is SO true. I mean, how can I remember to pray for people when I am completely buried in debt and fears about money?

Now for the hope.

In August of 2008, Ben came home one day from work telling me about this guy he heard on NPR-- Dave Ramsey. Ben asked me for two or three days to please check out Dave Ramsey's website and read about him. Because money was tight, I borrowed his book The Total Money Makeover from the library. {Have I mentioned how much I love the library?}

It was great. A lot of the things Dave said, I already knew and agreed with. And then some other things he said knocked me off my feet. Dave said, "Debt is not a tool." Well, blow me down! As a real estate broker/investor, one of the first things I learned was to use OPM (Other People's Money). Of course, looking back (and looking around at successful investors), I can see that the way to success in real estate is to operate a cash business.

Basically, don't buy what you can't afford.

Dave's plan for getting out of debt is simple:
  1. Save $1,000 as an emergency fund (so that you don't have to go into debt to fix the car/ go to the doctor/ repair the plumbing).
  2. Spend less than you earn and throw all extra money at your debt, starting with the lowest balance. (Called the Debt Snowball).

And that's as far as we've gotten. lol. Dave's plan has six baby-steps. And it works. And it's simple, but NOT easy. I totally recommend his book. And we are both looking forward to continuing with the rest of the steps. One day, we will move beyond Beach Cheap and become truly Beach Chic.


  1. hi lainie!! good luck with your debt reduction program....you are SO right about it being difficult (especially the spending less than you earn part!). i can tell that you're motivated, though, and that's key!

    i saw your comment on my blog....i'm so glad that you were able to find some bookmaking supplies here in jax! i found some great papers over at michaels the other day....made me so happy!!

    i also read your previous post about your husband being at chik-fil-a. his store is in a great area....a little far for me to drive, but when i'm in the area i always stop by! and i especially love their policy of being closed on sunday....i wish more retailers shared the "day of rest and worship" concept! :))

  2. Yay for Dave Ramsey and the baby steps! We are on baby step 2 as well, and can't wait to move on to baby step 3 (although that is still down the road a ways for us). Good luck on your baby step journey!

  3. Hi!
    I'm from Brazil and I've found your blog. I'm pretty sure that you're in the right way to get out of debt. spending less than you ear was the most important lesson that my parents could given me. We are poor, but in past we had nothing. Today our life is more confortable because we all work and save money. If I don't deposit money in my account every month I get worried. Now I want to start my bussiness. It's gonna be a school, I believe in education. Without my education we wouldn't have what we have.
    I've lived in USA for more than two years, as babysitter, and I know life can be great in your country, with many opportunities, but is also V-E-R-Y expensive.

    bye, good lucky! I wish you the best