29. November 2008 by admin.

As I wrote earlier, I received a few reader questions regarding my “18 & Drowning in Debt” article. In the next few posts, I will address these questions.

One reader asked: “What were the steps you used to stop spending and start repaying your debt? Did it involve taking another job? I’m sure you made a budget, but any specifics you can share will be helpful.”

I’ve read many books on personal finance and the one that REALLY helped most was Dave Ramsey’s “Total Money Makeover” This book outlines seven steps for people to get out of debt. It will take most people at least seven years to work through all thesteps. If you are patient, disciplined, and consistent, you will get there. Here are some of the steps which Dave Ramsey outlines in his book.

Step 1: Save $1,000 in emergency cash.

You know the cliche. Bad things happen to good people. A tire may blow out. An appliance may need repair. When unexpected expenses pop up, people usually charge it on their credit card. This only adds to their already mounting debt. That’s not good. Having $1,000 stashed away for emergency expenses minimizes debt.

If you think you’ll be tempted to spend your emergency fund on outfits or the latest gadget, sock it away in a CD (Certificate of Deposit) where you can make periodic deposits. There are many out there.

Each time you receive money, put a portion of it towards a $1,000 fund. It may take you two weeks, two months, or two years but once you arrive at the magic number, you’ll experience the added psychological boost of knowing you are able to save money.

And you are able.

So get cracking.

Feel free to post your questions regarding these steps. I’ll do my best to address them.

Stay tuned for Step 2.

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22. November 2008 by admin.

Debt…ugh!! With the economy in a tailspin, there are many out there who are struggling financially - especially college students.

My article “18 & Drowning in Debt” offers helpful tips to tame the debt monster. You can access it here: http://www.cbn.com/finance/williams_indebtat18.aspx

Since the publication of this article earlier this year, I’ve received many questions from readers regarding their finances. I plan to post my responses to those questions in the hopes this will help you navigate your dollars and cents. So stay tuned…

Posted in Published Writings, Finances | Print | No Comments »