80% behavior 20% knowledge

For a lot of us getting of debt is like going on a diet. You know what to do but don't necessarily do it!! That is where it is 80% behavior 20% knowledge comes into play. If you are looking to get out out debt check out this great video by Dave Ramsey where he talks about how to be financially successful.

Some highlights!!

Stop the bleeding
Only buy what you can afford!!
Use cash only (or use a debit card instead of a credit card)

Get on a Zero based budget
-Give every dollar a name whether it is going towards debt reduction, food or electricity

Dave's Baby steps

1) Save $1,000 baby emergency fund
2) Debt snowball
3) Save 3 to 6 months of expenses
4) Save 15% retirement
5) Save for college
6) Pay off the house
7) Build wealth