Six Months In: The Turning Point in My Financial Journey
In another two weeks, it will be six months since I started this blog. The older I get, the more I say this, but it’s crazy how fast time is flying. I saw a meme the other day that said, “No one tells you how quick you go from 18 to 25.” I definitely felt that. I digress.
I’ve learned a ton about personal finance in the last six months—reading books, attending events—but despite all this information, not much has changed in my finances. The problem? I’ve struggled to piece it all together into a clear, actionable plan. I’ve been really loose in my approach. I’ll pay off some debt here and there, then I’ll buy something ridiculously out of budget, then I’ll pay off some more debt. It’s safe to say that what I’ve been doing is not working.
After reflecting on my progress (or lack thereof), I realized that without a structured plan, I was just going in circles. That’s when I decided to revisit Dave Ramsey’s Baby Steps—these steps worked for me in the past, and I believe they can get me back on track. If anyone is not sure who this man is, he essentially offers personal finance advice in the form of radio shows, books, and coaching. He is by far one of, if not the most influential voices in personal finance. He is not liked by all and has some controversial takes, but no one will deny that the man has helped thousands of people sort out their money problems. Whatever advice he offers seems to be working.
A few years ago, when I was graduating college and getting ready for my first adult job, I listened to Dave Ramsey’s book Baby Steps Millionaires. In this book, Dave provides a list of seven actions we can take to sort out our finances. These actions are what he calls the "Baby Steps" (see below for steps). These steps helped me get out of debt and put myself in a better financial position at the time. I wish I had stuck to the plan back then, because I’d be in a better financial position today. But hey, better late than never.
I believe that these Baby Steps can give me the structure I need to get back on track with my money. They will hold me accountable and give me some direction. So, over the next few months, I will be experimenting with Dave Ramsey’s Baby Steps to see if they still work today. As I experiment, I’m going to blog about the experience and the insights I gather along the way. I believe it will be beneficial to both me and my readers.
When I created this blog six months ago, I said that I would be authentic. I would share my experiences—both my successes and failures. Well, it turns out that trying to read four books to learn as much as you can is not always the most effective method. It may work for some, but it just wasn’t for me. So, let’s see what the next few months hold with this new plan I’ll be following. I’m excited to share my progress with you and see where this structured plan will take me. Stay tuned for the next update!
Dave Ramsey’s Baby Steps to Millionaire:
Save $1,000 for a starter emergency fund.
Pay off all debt (except the house) using the Debt Snowball.
Save 3–6 months of expenses in a fully funded emergency fund.
Invest 15% of household income into retirement accounts.
Save for your children’s college fund.
Pay off your home early.
Build wealth and give generously.
