The W and I are really trying to get our finances down. We'd like to have our credit up to par and not quite living so much paycheck to paycheck.

Does anyone have suggestions on financial courses that have worked well for them. I've read Rich Dad, Poor Dad and it helped some. I keep hearing Dave Ramsey's name brought up.

Also, has anyone sought out the services of a non-profit credit counceling service?

We're not so worried about retirement as we both have retirement accounts we put money into. But we're trying to get more stable now and have goos enough credit to purchase a house next summer.

I signed up for Dave Ramsey. I like it.

You also need to work on a budget, allow spare money (be honest) so that you don't have to dip into paid bills, and plan long range on the budget, including adding in the interest you'll have to pay on each bill until it's paid off. I've got mine planned out for 5 years, which is how long it will take, including the added interest. Every 3 months or so, I look it over again to see if I'm on target.

Also, the one thing that has helped me the most, in terms of paying bills on time and lowering interest rates, is setting up automatic payments from my checking account.

Dave Ramsey is great. We followed his plan and it worked. Took a bit but it works.

Like CP said you want to do a budget. Say you both bring in 1000 every two weeks. EVERYTHING is accounted for. Meaning you start a 1000 say house *700* food *200* and so on..come out of it. So you have something that looks like this

House 700/300
Food 200/100
personal 100/0

Then all money is accounted for! But your goal is to set up atleast a 1000 Emergency fund if you do not have one set up yet. And work on debt so say you have 50 that does not go to bills it goes to that one credit card you need to work off. I suggest getting his book! We are starting to follow his ways again as we had to dip into our Emergency funds and havent quiet gotten back up there.


I highly suggest you do not do this. When you use this route and then try to get a FHA, VA or conventional loan youwill be treated as you would have filed Chapter 13 Bankruptcy. So this can also hurt your credit score in the future.

KT:

I recommend that you "Pay yourself first"

What does that mean?

You put money away FIRST for your future. The 401k, and even a savings account or other investment account. Start with $10-20 a payperiod. IF You get a raise, defer that as well.

You can live on what's in your net paycheck. If it isn't in the paycheck, because you have sent it somewhere else, you can really save and build wealth.

I concur about NOT consulting the credit counselling agencies unless you are in deep doo-doo. I would consult with any except the "Consumer Credit Counseling center of America" Many of the others are just debt mills. You pay $ up front and they mail ten letters on your behalf. Does nothing and appears like action. YOu just sink lower.

Track EVERY dollar of spending for 45 days. EVERY DOLLAR. Both of you. If you withdraw $20 bucks from the ATM, then you document what you did with that $20. $2.50 for a coffee, .75 for a paper, $1.25 for gum, $8. for lunch., etc.

You find the leakage that way. Review what happened on the Debit card transactions and the credit cards as well. Once you KNOW where it is going, its alot easier to control it.

And the discussion about those purchases is important too.

Review your communications costs.

Cell phone
Cable Access
Premium Cable Channels (How many MOVIES can you watch?)
Home Phone
Fax Line
ISP and/or internet.

Its surprising to me to find folks that are paying $350-450 dollars for things like this.

LG

I was ALWAYS a fan of pay yourself first.

But, I don't think DR is one, or am I mistaken?

$$$Cash$$$

If the cash is not there...don't need it that bad.


Credit/Loan only to buy the house...as am paying myself in the end.

KT,

Just saw this. I don't get on the regular forum lists very often as I just check the active topics most of the time.

Don't know if you found anything yet, but I second the Dave Ramsey materials. Financial Peace University. Look to see if they are running a class anywhere near where you live.

Classes are often held at churches, libraries, clubs etc. We just completed the 13 week course at our church. In 13 weeks the 12 families that attended the course paid off over 30K in debt. And once you take the course you have a life-time membership that allows you to attend another one free (without having to buy the materials again which cost about 100 bucks- we paid 93.00) as a refresher.

Excellent materials! It should be required courses for anyone entering the workforce and certainly for anyone getting married.

Dave tells a story of a young couple that got married at 22 years old. Each of them was earning around 70K per year. They moved into a tiny little apartment over a garage and got discounted rent by helping care for the yard and stuff for the old lady who owned it. Friends and family called them nuts. The guy said his MIL said he was abusing her daughter.

Five years later, at 27 years old, they paid CASH for a house and he wrote his wife a check for 25K to furnish it with...

Yep. They were nuts...

On their way to being rich nuts.

Mark