Answering Your Everyday Money Questions

Answering Your Everyday Money Questions

– All right, now we’re going to hear stories from people like you who have started the Baby Steps. – We had our son who had medical problems, and medical bills really
have traumatized our future. So, we really wanted to tackle as much as we could to handle those debts and to get them down as quick as possible, so Financial Peace was the best way we saw fit to do that. – We started this class
mainly so that we can live our dreams out later down the road. – So we could give our
kids a better future and show them, you know, whatever comes our way in life, as far as the financial or any burdens, that we’re handling them. – I grew up with my dad
always talking about Dave Ramsey says this, and Dave Ramsey says that, and my parents, I think going through
Financial Peace University when I was so young, saved for a college fund for me, and so, totally had no
student loans to pay off. So, I actually don’t have any debt, but now being in the class is kind of fun because I get to apply the
things that I already know and that I’ve already learned
in my own personal finances. – I can remember my parents
doing Financial Peace when I was younger, knowing that was great for their marriage and for us as a family financially. And so, now that we’re, we just got engaged, and so
we’re doing it together. – [Blake] The funnest
thing for me, though, was the conversations that we’ve had about our budget, finding out who is the nerd, who is the free spirit. They’ve gotten me excited about our marriage and taking charge of our finances and getting started on the right foot. – I love hearing stories
of people who are starting to see real life-change. I mean, I’m sure a lot of you can relate to some of what you just heard, and I really want you
to have that hope, too, and I love that they’ve plugged in to a Financial Peace University community. It always amazes me how quickly
people can see the light at the end of the tunnel. Now, some of them had
some questions for me, so let’s see what they are. – A question that we would have, say that we have a little
bit of credit card debt and a car payment heading
into our engagement, into our marriage. So we would love to know if
there’s any other advice or any other thoughts
that you may have for us as we move into marriage together. – Yeah, I think just if there’s
anything specifically for an engaged couple moving into a marriage, if there’s any specific financial advice, or conversations that we
could have on the front end, that would be great to know. – Oh, engaged couples. They’re just the best, right? The bliss before the reality of what they’re about to walk into. Marriage is awesome, but it’s more awesome when
you are on the same page. So, a couple of things I would say, if you are engaged out there, or to this couple specifically, keep your money still separate. Until the day you say, “I do,” do you need to combine them, so I don’t know whose
credit card debt it was, or whose car loan, but you keep it separate, you start working the
Baby Steps on your own, and then the beautiful thing is, when you get married, then you combine it all together. So, I hear a lot of couples say, “Okay, well, maybe it’s his car loan and his credit card debt, and she doesn’t have any payments.” Well, for her, she could just
be saving up a lot of cash, and then, once they get married, she can use some of that money, pay off his debt, and together, they’re moving on together. So, again, keeping things separate until you say, “I do,” is huge. And also I would say, don’t go crazy with the wedding. Really, it’s like one of the things people spend so much money on that, yes, you want to have fun, you want to enjoy your day, all of that, but do not go overboard, and definitely do not go
into debt for the wedding. All right, here’s the next question. – What advice can you
give to keep us motivated going through our debt snowball? – So, staying motivated
through Baby Step 2 can be really difficult
for a lot of people, especially if you have a lot of debt. And if it’s things like
medical debt that you see, that you’re like, “Man, I can’t sell it,” right? Like a car loan, you’re like, “Hey, I can choose to sell the car, get out of that debt really quickly.” Medical debt is something that
does seem to string along, but I would say, have some quick wins within the big chunk of your medical debt. So, look at your medical debt
almost as a separate snowball, and just kind of separate it out, and say, “Okay, this is what
we are about to tackle.” It’s a huge mountain. There’s so much there, but put some mile markers in place, and have some celebrations throughout it, because you want to be able
to feel those quick wins even when the bills are staggering and it seems like there’s
so much money there. Having those quick wins
is going to be so helpful. All right, coming up next is a story of the couple who is actually coordinating that Financial Peace University class. So, here they are. – We had been married for 28 years, and we purchased a house
when we moved here, with debt, and we decided that we wanted
to pay that debt off early, and based on some things that we had heard Dave Ramsey talk about. And so, we got on that road and went down that path. And we paid off our house
within about 10 or 12 years after we moved here, and that just really started our process of wanting to be completely debt-free. – [Tommy] So, it’s become
really a way of life. We’ve put, all five kids
have had an opportunity to go to college debt-free. We have a fund for their wedding fund, so when each one of
them has gotten married, we’ve been able to fund their wedding without going into debt. It is kind of amazing to see how, when you have the extra money to sock away in the 401(k) and savings, that there’s not much pressure. There’s a lot of peace just to know that we’ve been able to bless our children, and then we will be able to retire with a lot of dignity. – And now we’re just living the life that Dave has told us about. – And I would say that we
were pretty nerdy about it. We actually enjoy our budget. After doing this for 20 years, we’ve got 20 years’ worth of data of what our expenses and income is, so we sit down the first of the year and do a big spreadsheet, and we just really touch base each month to make sure we’re where we need to be, but over that period of time, you know, we’ve had a car fund, so we haven’t had a car debt. So, to be honest with you, we actually have two, we own two homes debt-free. I think we got people’s
attention the first night when we looked at them and said, “This works because we’ve done it, and you can do it, too. If we could do it, you can do it.” So, we enjoy seeing the success and seeing the plan work. And it’s really neat to sit in the class, and our class is maybe unique, I don’t know, because we’ve got some
older folks in there, we’ve got some folks
that are just married, we’ve got some folks that are engaged. And it’s really neat to see
the light bulbs come on and to kind of pay it back a little bit and to share what we’ve learned. And that’s fun, just to be a part of
knowing that we’ve helped them on their journey. – So, after hearing their stories, I hope you guys are ready to go out and save that $1,000. I really, really do, because again, it’s that buffer between you and life, getting started on a plan
where you never have to worry about money again! (bright music)

4 thoughts on “Answering Your Everyday Money Questions

  1. If I have medical bills in collections that I never paid should I pay them in full or not pay them at all and wait til they fall off?

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