BABY STEPS to FINANCIAL FREEDOM

I have discovered a new path for me and my family.

I have joined a financial revolution and I AM DEBT FREEEEEEEEEEEE (except for my mortgage-to be dealt accordingly in Baby Step Six!) Yeahhhhhh.

It all began innocently enough this summer. It was a quiet evening and I was driving back from a tour of the campus of my oldest son's soon-to-be college. Fliping the dial on the radio, I stopped when I heard some overly excited people talking and screaming about how they had paid off all their debt. This intrigued me, immediately and I was hooked. Every night at 9:00 sharp, I tuned in. Who was this guy who called himself Dave Ramsey?

I initially was intrigued because he was saying things my dad had always said. I remember my dad talking about when he and my mom were first married, he took his paycheck and budgeted for everything and placed the money into envelopes marked for each expense. When the money was gone, that was it for that expense for the month. Hearing the same plan being discussed on the radio in a way reinforced what my dad had taught me, and didn't sound as crazy as I had originally thought it to be.

The really cool thing, is that I was close to being credit card free when I first started listening. I had refinanced my unsecured debt the year prior into a (what I now know as stupid) HELOC. And actually I had tossed my new zero balanced credit card away in a box someplace in the basement. I hadn't even thought about it, that was until... college! My son was accepted to college, which meant, he needed everything in the world for his dorm. So, I remember the panic. I frantically searched and finally found buried under old photos and expired gift cards, the VISA! Still with the activation sticker in place and so, I picked up the phone.

I dropped off my son in September and it wasn't until October when it came. A $1400 VISA bill. Until then, I had not had any credit card debt since the previous November when I consolidated my $30,000 credit card debt and my auto loan of $14,000 and paid off all my medical bills, of about $4300. Which left me with a line of credit of $1700. Now I knew that I had my property taxes due in November of $2100 and so, I was in a predicament. I had been listening to Dave Ramsey now for three months, and I was feeling guilty. I now had no excuse, I knew better. So, I carried the visa bill, deciding that my property taxes were more important. With taxes paid off, guess what came next? Well, Christmas of course.

So, this is when I got Gazelle-like. I received a bonus at work - yea! I paid off the visa in December. As I paid it all off, I smiled to myself, knowing that Visa probably was expecting me to add to my balance and buy all my family a bunch of unnecessary gifts. Well, I surprised myself and didn't use it. I had enough from my bonus to pay off the visa, and only bought presents for my boys - with cash! I was so proud of myself. I swore to myself that was the last time I would ever use a credit card. And do you know what? I haven't.

It took me about six months of listening, before it actually sank in - that I could do this too! Determined, I began to take action.

My family went on a vacation for the first time over spring break - cash! I budgeted for the first time for a vacation and we came back ahead of the budget. Not only that, but my boys all agreed this was the best vacation we ever had together.

I just finished taking care of my HELOC - by refinancing my home. And, with my tax refund I have a start-up emergency fund and so, now my next step is Baby Step Three to build it up to 6 months of expenses. My goal is to have that accomplished by the end of the year.

I am so empowered now that sometimes I drive my boys crazy. They roll their eyes when we are out in public and someone asks me how I am and I answer - Better than I Deserve!

I owe so much to my Dad who took me aside and showed me a budget and did his best to instruct me on my finances and to Dave Ramsey, who reinforced those morals and gave me the tools to put a plan into action.

I recommend this plan for anyone and everyone. Go on and Change your Family Tree!