My Debt Journey: The Beginning with Dave Ramsey’s System

Happy Wednesday! How’s your week been going? Today I want to chat to you a bit about how we’ve decided to take our finances into our control (because they were a little out of control before that) and what we’re doing in 2019.

My Debt Journey: The Beginning with Dave Ramsey's SystemAfter having a troublesome year last year between health and finances, we’ve had to make A LOT of changes in our lives the last few months and moving forward. One of the biggest ones was getting our debt under control. We received The Total Money Makeover book for a Christmas gift from Ben’s boss and immediately dialed into it. I also started going hardcore into YouTube videos about budgeting, the debt snowball and how we could make Dave Ramsey’s program work best for us (because personally, I don’t think every program is a one size fits all.)

In January we spent the time reading the book together and setting up our budgets. This is when I spent the most time understanding how I already spend my money, how much debt do I even have (more on that in a second) and getting to know some of my favorite channels and bloggers (since that’s how I best digest info) into my queue. I’m not kidding – I have read and watched SO MANY THINGS.

So now – let’s get started.

February was the start to both of us budgeting. To start out with, Ben and I are keeping our budgets separate to truly understand what is necessary in our budgets and what we could do differently. In a few months (around when we get married) we may change that to combing but for now – keeping it separate. I made a big spreadsheet budget with my actual numbers I’m spending, how much I’m budgeting for each month and how much debt I have to put into my debt snowball. I’ve also started using cash envelopes for things like restaurants, groceries, Cora, etc. I’ve also stopped any spending whatsoever on my credit card

In Dave Ramsey’s plan, he has you first getting your $1000 in savings as Baby Step 1. We’re swaying from that a bit and are going to try to continue saving a bit each month since $1k in Chicago isn’t that good of a buffer, but it’s a great starting place! From there, I will be going after my smallest debt to pay that off as quickly as possible. I currently have five debts:

  • Personal Loan
  • Credit Card
  • Car Loan
  • Great Lakes Student Loan
  • Sofi/Mohela Student Loan

If you’re interested in seeing more of my debt journey INCLUDING real, real, realllly real numbers, let me know! I plan to do a segment on my YouTube channel, but I’d be happy to do that here on the blog as well if it’d be helpful. Let me know!

So far, I’m feeling inspired AF. I’m loving it (although I keep forgetting my cash envelopes at home 🤦🏼‍♀️) But we’re working on it and I can’t wait to see how much money we’re able to pay off this year.