A Debt-Free Marriage

7 Sep

Cover of "The Total Money Makeover: A Pro...

Cover via Amazon

Dustin Riechmann over at EngagedMarriage.com, has an insightful article about the 5 Benefits of a Debt-Free Marriage.  This article is sooooo timely, as Dr. B and I are using the same Total Money Makeover methodology that Dustin and his wife used to become debt-free.   The total Money Makeover is a book written by Dave Ramsey.  The book gives step-by-step instructions on how to become debt-free.  The major components of the process are the 7 baby steps:

Baby Step 1) $1,000 to start an emergency fund

Baby Step 2) Pay off all debt using the debt snowball

Baby Step 3) 3 to 6 Months of Expenses in Savings

Baby Step 4) Invest 15% of household income into Roth IRAs and pre-tax retirement

Baby Step 5) College funding for children

Baby Step 6) Pay Off Your House Early

Baby Step 7) Build Wealth and Give

Dr. B and I are on the end of baby step two, the Debt Snowball.  My car will be paid off next month (woohoo!) and then the last credit card by December!  Then in January we will start our 6 months of emergency savings.  We talk everyday about how we never envisioned ourselves being debt-free, not to mention being debt-free in less than a year!

Some lessons we have learned since starting our Total Money Makeover:

  • In order to become debt-free both spouses have to be on board and committed to the plan. It will not work if only one spouse believes in it.
  • Communications is essential.  As you open up and talk about your finances, it actually gets easier and easier.
  • Don’t be afraid to sell things that you don’t need.  When we sold our house we had a garage sale and made over $2,000!
  • A monthly budget is central to your success.  Create one and stick to it!

There will be some sacrifices, but it’s truly worth in the end. I encourage you to at least listen to Dave Ramsey’s daily podcast, read his book The Total Money Makeover, or at least check out his website, what could be the worse thing that would happen…you become debt free? 🙂

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6 Responses to “A Debt-Free Marriage”

  1. Bernard Williams September 7, 2011 at 12:08 pm #

    Great article. There is something to be said for not having the need or desire to argue about money.

  2. Cindy September 7, 2011 at 2:28 pm #

    Being debt-free is a major stress reliever, that’s for sure. The only debt Matt and I have to pay is our house and we don’t look at that as debt as much as an investment. He pays extra on the mortgage every month and as soon as we are in a place to refinance to a 15-year fixed, we’re doing it.

    I’m also in the process of looking for work again because I’m tired of not contributing. We don’t have kids so we should have the kind of income that affords us to fix up the house a little more, go on nice vacations, etc.

  3. specializingintheimpossible September 7, 2011 at 11:40 pm #

    I enjoyed reading your post! It’s fun to see people excited about becoming debt-free 🙂
    And thanks for sharing some of the lessons you’ve learned–they are great points!

    • Natasha Williams September 8, 2011 at 3:55 pm #

      Laura,

      I’m so glad you enjoyed the post. This debt-free journey has been a wonderful ride, I enjoy sharing my insights. 🙂

Trackbacks/Pingbacks

  1. Who is richer? The one who earns less with no debt or the one who earns a good income but has debt? « Field of Debt.com - September 9, 2011

    […] A Debt-Free Marriage (natashawilliams.wordpress.com) […]

  2. Pick the Budgeting Tool That You Will Use – I am Frugal, but Even I Say Spend a Little If you Need to In Order To Get Something That You Will Use! « Field of Debt.com - September 15, 2011

    […] A Debt-Free Marriage (natashawilliams.wordpress.com) […]

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