I know. I know. You thought that you were joining a group so you could organize your house. So why would we start our year talking about finances? I mean logistically, how can we work on organization all year if we don’t even know how much money we could spend on it each month? So there’s that. Just saying. 😬
Truthfully though, my hope for you was to provide organization for your whole life, not just your homes. And if I’m being really honest, I feel like there are always so many things you could do, or should do, or need to do when it comes to your finances, and I don’t know about you, but I don’t always make time for those things when I know that I should.
So here we are at the start of a new year, and honestly I think we should start at the beginning, and that fortunately (or unfortunately) is always money.
But here’s the thing, I am NOT a financial expert. But you know who is? His name is Dave Ramsey, of https://www.daveramsey.com and he honestly has answers to every single question you might ever want answered. Let’s start with the basics, he has a FREE budgeting app, an insurance calculator, and tips on investing wisely. He has experts he trusts for all your needs, including real estate help. Dave even has information about wills, and how to plan for long term care for anyone you love. Plus I found information on health savings accounts on his website as well. It is all there. I’m just barely scratching the surface.
In fact, I went online to look for resources for those of us who are renting, and hoping someday to buy a home, and there it was: how to buy a house (on his blog). So my friends, if much like me you are renting at this moment, but know that your dream includes a house, well here you go - tips to help you start thinking about that dream from a very practical perspective.
Honestly you should just go check out his website yourself, but I will mention one more thing - Dave’s biggest goal is to help you eliminate debt, build wealth and be able to give freely. He has a seven step process, which I am going to put right here, as much for myself as for you to come back to as often as you need to. He calls them “baby steps.”
BABY STEP 1: starter emergency fund - $1,000
BABY STEP 2: pay off all debt except for your house (including cars)
BABY STEP 3: fully funded emergency fund - 3 to 6 months of living expenses
BABY STEP 4: invest 15% of your income into retirement
BABY STEP 5: save for kid’s college
BABY STEP 6: pay off your home
BABY STEP 7: build wealth and give
You know why I really love this? It’s just one thing at a time. The truth is that so much of life really boils down to this simple truth: set your sights on one thing at a time. You either get it done and move on to the next thing (like with these baby steps) or you build small habits to keep that momentum going. Want to lose weight? Start with one change. Want to organize your house? One project at a time. Statistically speaking, trying to do more than one thing at a time decreases your chances of success drastically!
So what will you choose friends? What’s your one financial thing?
XOXO, Kylie