I listen to DR everyday and have learned a lot but I was already doing most of his plan before I heard about him. Today I am debt free other than about 20% left of my mortgage.
First thing I would say (and I didnt hear it mentioned) is close all those CC accounts and cut up the cards.
Then get on a strict budget, no eating out, no buying anything that you do not need (this only hurts temporarily).
Sell anything that you can to a point the dog is hiding cause he thinks he's next.
Now list all the debts smallest to largest and start paying off the smallest one while making the min. payments on everything else. When thats gone put that money you were paying on that small one towards the next smallest. Seeing this small victories is proven to build motivation and intensity.
You already said you have an emergency fund in place which is good.
Now on the vehicle, DR would tell you to sell and get a beater (again, this is temporary). I saw a 2004 f-150 yesturday on CL for $3500 with 110k miles on it. It looked pretty clean. Get something like that after you sell your car and pay cash for the beater. Get liability ins on it and you just gave yourself a $500 a month raise to help pay off your debt. DR says to never buy a car worth more than 1/2 your annual salary so if you make less than $50k, you got too much car. Once your debts are gone (and that will happen fast if you sell this car), think how fast you can bank some cash to move up into a nicer truck and pay cash for it.
I have a hardback copy of Daves book, The Total Money Makeover, and also an audio CD version that I would be willing to let you borrow also.
I dont do the envelope budget system Dave talks about but I"m also not a spender so I dont see the need. If I dont need it, I dont buy it. I'm pretty frugal with my eating out and play money but I'm also out of debt and my net worth is up there pretty good so I can splurge sometimes if I decide to reward myself with a new gun purchase or a steak dinner with a girllfriend. When I was in your shoes, I didnt splurge ever.
If your investing in retirement, Dave would tell you to stop that temporarily until this debt is paid off. Shouldnt take you even a year it sounds like (if you sell the car). Once its all gone, invest 15% of your salary in good growth mutual funds. I use Vanguard for my investing into a ROTH IRA. Plus I have a state matching pension fund that I contribute to. Your young and the best advice I can give you is to start investing ASAP once the debt is gone. Time and compound interest will easily make you a millionaire by retirement age...if you start now. 15% of your salary invested at 10% interest will be many millions from age 30 to age 60. 10% is NOT hard to find either.
First thing I would say (and I didnt hear it mentioned) is close all those CC accounts and cut up the cards.
Then get on a strict budget, no eating out, no buying anything that you do not need (this only hurts temporarily).
Sell anything that you can to a point the dog is hiding cause he thinks he's next.
Now list all the debts smallest to largest and start paying off the smallest one while making the min. payments on everything else. When thats gone put that money you were paying on that small one towards the next smallest. Seeing this small victories is proven to build motivation and intensity.
You already said you have an emergency fund in place which is good.
Now on the vehicle, DR would tell you to sell and get a beater (again, this is temporary). I saw a 2004 f-150 yesturday on CL for $3500 with 110k miles on it. It looked pretty clean. Get something like that after you sell your car and pay cash for the beater. Get liability ins on it and you just gave yourself a $500 a month raise to help pay off your debt. DR says to never buy a car worth more than 1/2 your annual salary so if you make less than $50k, you got too much car. Once your debts are gone (and that will happen fast if you sell this car), think how fast you can bank some cash to move up into a nicer truck and pay cash for it.
I have a hardback copy of Daves book, The Total Money Makeover, and also an audio CD version that I would be willing to let you borrow also.
I dont do the envelope budget system Dave talks about but I"m also not a spender so I dont see the need. If I dont need it, I dont buy it. I'm pretty frugal with my eating out and play money but I'm also out of debt and my net worth is up there pretty good so I can splurge sometimes if I decide to reward myself with a new gun purchase or a steak dinner with a girllfriend. When I was in your shoes, I didnt splurge ever.
If your investing in retirement, Dave would tell you to stop that temporarily until this debt is paid off. Shouldnt take you even a year it sounds like (if you sell the car). Once its all gone, invest 15% of your salary in good growth mutual funds. I use Vanguard for my investing into a ROTH IRA. Plus I have a state matching pension fund that I contribute to. Your young and the best advice I can give you is to start investing ASAP once the debt is gone. Time and compound interest will easily make you a millionaire by retirement age...if you start now. 15% of your salary invested at 10% interest will be many millions from age 30 to age 60. 10% is NOT hard to find either.
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