Dave Ramsey's Thoughts on the Economy

I found this in my email this morning and thought I should share this. You can access Dave Ramsey's newsletter and listen to his radio show on line at www.daveramsey.com.

Here is his article.....

I’m tired of hearing all the gloom and doom coming from the media about the economy and unemployment—I bet you are, too! Let’s take a minute to look at the true reality of the situation and what we can do about it.

Yes, many people have lost their jobs and houses. You may be one of them. But guess what? People have lost their jobs and houses even in a bull market. About 93% of people are still employed. That is pretty good! I was alive in the 1970s when unemployment hit double digits, and we’re nowhere near that right now! I’m not making light of the fact that some people are struggling; I’m just putting the situation in the proper perspective.

Even though you may be currently unemployed, that doesn’t mean you have to participate in the recession. People like me who have chosen to not participate acknowledge the reality of a slow economy and suffering people. However, we have decided that we’re not going to form our lives around the negativity coming out of the media and government. We’re intensifying our efforts and going to have the best year of our lives in spite of things slowing down.

Some people who find themselves unemployed will go into new careers or start their own businesses where they have the best year of their lives—professionally, financially and emotionally. Their current job losses are actually blessings in disguise. They believe this and are formulating game plans based on it. I guarantee there are men in their garages right now starting their own mechanic shops. The next Mary Kay Ash is writing up a business plan for new products she’s just created. College students are developing “the next best thing” in their dorm rooms as you are reading this. This is reality!

So think about your skills and interests. How can you leverage those passions into something you enjoy doing every day while earning money for it? If you haven’t lost your job but dread going to work, maybe it’s time to fire your employer and go in a new direction. When you have a game plan for your money and career, you will have a sense of empowerment because you aren’t a slave to the lender (or employer).

When employers start hiring because they believe their businesses will grow, recessions end. Many who have stopped hiring a healthy amount have been paralyzed by fear. They’ve lost hope. People who continue going about their lives in normal ways (without being irresponsible and buying stuff they can't afford) believe in the future. It’s called hope.

You can have fear or hope. It's your choice.
I choose hope.

Budgeting Is Fun?

Last night's lesson was awesome! We had some alumni return for the budgeting lesson. It was great to hear all of the victory stories shared both privately and publicly. It seems that those of you who actually apply Dave's baby steps are seeing the benefit in a very tangible way, your bank account. I would love to hear what you have to say about the budget and how it works for you. If its not working for you, then let me know too. I am sure I can help.

God Bless and sharpen your pencils, its time to do your March budget!

Work Through The Pain

I spoke to a few poeple over the weekend about how painful the budgeting process can be. Making lifestyle changes is not easy. Some folks don't even know where to start. That is why FPU is so important. Dave teaches us not just why we should budget and save money, but he also teaches us how to do it. He teaches us in a manner that is extremely simple to understand. Now doing it is another thing. That's hard! Let's face it, this is hard to do.

I was reminded of this process this morning. I woke up at 5:30am and decided to go for a run before Stacie left for work. Sometimes you just don't feel like doing what you know you should do. In addition, sometimes it just doesn't feel right. This morning was one of those times. Usually it takes about 1/2 a mile or so for the stiffness to kinda wear off and then im in the zone, listening to my music, praying and just getting lost in my 'runners high' if you will. But today I felt uncomfortable for the entire time. I didn't go far, perhaps 4 miles or so. Everything just kinda hurt or felt awkward. I thought, boy, this kinda sucks today. But I kept on pushing through, praying for wisdom and strenght to push through. Before I knew it, I had finished my loop and I was back home.

I re-learned this morning that doing the right thing can seem painful at times. In the end, doing the right thing is what matters most. It's not what you feel now that is important. Like Dave tells us, "Children do what feels good. Adults devise a plan and make it happen." Budgeting can be painful. At the end of the month however, when your envelopes still have cash in them and you can pay off more debt than you originally planned for....it rocks! And that is a great feeling!

Keep Chasing the Cheetah!

FPU 2 - A Follow Up Class to FPU Starts in March!

Ever since Stacie and I completed our first FPU class nearly one year ago, we have been getting the same question from the graduates. What are we going to do now? Doesn’t Dave have another class we can go through?

Well, as I have said before in class, in the blog and even in person many times. FPU has been a life saver for Stacie and I. I am absolutely convinced that FPU has changed my life forever. The impact of the common sense habits and conventional wisdom will shape my family for generations to come. I thank God daily for this.

With that being said, I think that the main part of my personal success is that Stacie and I continue to go through FPU. It forces us to stay on task. It forces us to keep doing our budget. It forces us to use cash. Imagine what would happen to my integrity if I got caught using a credit card by someone attending my class. The best part is that even after seeing the Super Saving class over 10 times now, Stacie and I still come home from that class fired up about saving. We talk about what we are doing and how we can do it better. Now I know what you are thinking and yes, we are freaks. But all of us have a little freak in us, even you.

We have also had the benefit of listening to hundreds of people each week in small group discussion. We get inspired by them, we learn from them and it sharpens us. With all of this being said, we have decided to start FPU 2. FPU 2 is basically an opportunity for all FPU Grads to get together and share their successes, get personalized needed help, inspire and encourage one another, eat good food, and drink good drink in a friendly, open, and safe environment. Think of this is a typical FPU breakout group on steroids. I have some ideas as to how to structure this but the structure needs to be loose to allow for everyone’s needs to be met in regards to asking questions and getting answers.

More to come soon on this but respond to this post and give me your feedback!

Step By Step Toward The Ride of Your Life

Most of you know our story. Stacie and I had all of our assets and all of our income coming from Real Estate. When the bubble started to slowly lose air and beging falling, so did our financial outlook, our hope, and our emotional disposition. We found Dave Ramsey in December of 2007. We immediately stopped borrowing, started budgeting and paying off debt. By that time we had $40,000 in consumer debt (most of it in credit cards). It seemed as though we would never be able to pay it off. Even though we taught FPU and saw success in the lives of others, we never really seemed happy with our progress. We expected more of ourselves. Dave's statistics from literally hundreds of thousands of people who have been through FPU and succeeded are that it takes 18-24 months to complete baby step 2. Thats too long for me! I want to be debt free now! Of course looking back I realize that it took me 7 years to make my mess. Getting out of it in 6 months is highly unlikely.

I was inspired to write this morning becuase Stacie and I realize that we are just a few short months (possibly sooner) away from being Debt Free! I can only explain this phenomenon in this way. It's like waiting in line for Space Mountain. The sign says 45 minutes from this point. You get in line and there are a million people ahead of you. You look at your watch and think about the psychology of the sign. Do they put higher numbers on the sign so that when you get there in only 40 minutes you are happy? Perhaps. However, you never see them changing the sign so who really knows. Anyway, the bottom line is that slowly, methodically, and deliberately you move forward. One step at a time you move. Sometimes you burst forward for several feet. Sometimes you seem stuck for what seems like hours without moving. When you have somone at your side supporting you the time passes less painfully. The trick is to keep moving. Never let the gap in front of you get too big. If you can only inch forward a few feet, do it. Before you know it, you can see the entrance and you know you are close. Then it gets exciting. You see others getting on. You see some getting off and they look like they just had the ride of their life.

Don't give up. Keep inching forward. God is good and faithful. Stacie and I came home from FPU last night fired up about the possibilty of paying off our final $17,771 by April or May at the latest. May would be 17 months. Hmmm. I wonder how Dave does this.

FPU is Back

It was great to see FPU back in full force on Tuesday night. For those of you who have been faithful to the blog you might be interested in the following victory stories since the last post.

1. John and Liz Dunstan are now Dave Ramsey Certified Financial Counselors. Liz is helping on Tuesday nights with our current class and they can help you too if you need it. How awesome is that?

2. Josh and Pricilla Millsap are kicking some cheetah butt. Check out this email from Pricilla...
Just wanted to write you guys and let you know we DID pay off our Credit Card Debt. We are down to 1 car pmt and student loans. We are going to be working diligently at that for the next couple yrs. Josh did recently have his pay cut which is a setback, but were gonna be ok. Anyhow, just wanted to write you guys and update you. Hope all is well with you guys! Thanks for all you're doing!

3. Stacie and I have paid off our 2nd to last credit card just today! We have one more to go. We started this mess 14 months ago with $40,000 in consumer debt. Now we have just one credit card with $18,000 left on it. We have not borrowed a dime since December of 2007 and God has blessed us tremendously throughout this process.

Come to our class this Tuesday night and bring a friend. Please post your success stories. I would love to hear how everyone is doing!