Debt is Dumb

Debt Is Dumb will be the name for my New Blog on how to get you out of DEBT.

There is no Easy Magical way to get out of Debt and to stay out of Debt.

But with hard work and a plan you can.

Step 1   Have a Plan or Plan to Fail. 

          Sit Down Right now and make a plan.

         Goals and a Budget.

             First thing you must do is make a Budget.
             Write down what you spend everyday.
             Write down Why you want out of Debt.
             Do you like the phone calls or the feelings of being in Debt. 
             Write down Why you want to Change.

Step 2 Save an Emergency fund of $500.00 for Every           $10,000.00 you make.

           If you earn $60,000 you will need an Emergency Fund of $3,000.

Step 3 Pay off your smallest loan to your largest loan in Value.

             Everything except the House, This should be your last Debt to pay off.

Step 4 Raise your Emergency fund to $5000.00 for every $10,000.00 you make.

Thus if you earn $60,000 you will need an Emergency Fund of $30,000.
This may Sound impossible it is Not.

Matter of Fact Nothing is impossible, Impossible just takes a bit longer.

Step 5 If you are Under 50 years of age and make less than $155,000 put $4,000 into Roth IRA. $5000 if your are over 50.

Step 6 Now Save 10% of your pay in 401k

Step 7 Start to Pay $500 a month more for every $10,000.00 you         make extra to pay off your house.

Step 8 Start to Fund Your Childs College Fund.

  No private scools unless you are a millionaire.  A Private Pre Elementary School will cost you more than College.

Step 9 Pay off Your House. 
            This should be your last Debt.
            So what if it took 5 to 10 Years Your Done.
            I will be done in Aug 2007
            God has Blessed Me.
            I do not make 6 figures.

Step 10 Save Save Save

Step 11 Give it all away its not yours anyway it's Gods.

So give give give or teach others how you did it.

I Hope this will help Someone. © Copyright 2007.

Thank you all Again for all the interest.

Remember All of this advice is worth what you paid for it.