Financial Peace Friday

As I have briefly touched on in other postings, John and I began taking the Financial Peace University course at our church about 2 weeks ago. So far, it feels like an extended pep talk from Dave Ramsey. While it has been entertaining, I'm ready for some meat and potatoes! Thanks to our tax check, we are ready to accomplish his "Baby Step #1" which is $1000 in an emergency savings fund. So, we are gearing up to accomplish "Baby Step #2" which is pay off your debts in order from lowest to highest. The rational is that you will experience some early victories that will keep you motivated. For us, this is easy (well, sorta) because we only 2 major debts.

1. My student loans, which I am behind on by a few payments. The interest rate on these is low at about 7%, but now that we can have a plan, I'm so excited to watch this debt disappear.


2. A fairly sizable loan my parents made to us when we were buying our house and a past debt of my husband's threatened to end our home-buying dream completely. (Thanks, Mom & Jim!) I'm also thrilled to be able to start paying them back on a regular basis. They have been so generous and they only send threatening letters and make harassing calls about half as much as other debt collectors. They are the BEST!

The most important aspect of this new process will begin on Sunday, March 1st. This is when the new budget goes into place and we begin to record EVERY DOLLAR WE SPEND. I just love a new beginning and I'm anxious for progress. I'm counting on those of you who see me out and about to keep me accountable! (That means you too, Kira! Now I really NEED to win your books!)
Just in case you are like us, living pay check to pay check, NO SAVINGS, not much in retirement accounts, making no real head way on your debt..., I encourage you to look into this program. Clearly, I can't say it works from my own experience, but I have seen how it worked for friends of ours who paid off, like, $80,000 worth of debt in around 2 years. I also have faith that this will work for us because this program is Biblically based. With that in mind, let me leave you with a scripture that we have discussed repeatedly in the last few weeks:

"The rich rule over the poor, and the borrower is servant to the lender." Proverbs 22:7

You can also read "servant" as slave. Who are you a slave to today? If you seek Peace in your life, this is a good place to start.