Knowing what percent of my take home pay I could spend ON THE BIG THINGS really turned my life around.

I started with Dave Ramsey’s Gazelle budget.

Fabulous.

Here are some basic guidelines of the biggies:
Housing    35% MAX
Cars           15% MAX

Housing, all in:
Rent or Mortgage + tax        25%
(on a 15 year mortgage)
Tax, utilities,
Homeowners,
renters insurance.                  10%

Housing, ins, utilities.     35%MAX
If you are over, move or sell your house!

Whaaatt??!! Really?!!!

Yes.

I’m giving you a hug here. We are all mislead as a nation that we NEED a HOUSE and the AMERICAN NIGHTMARE. Renting is patience, says Dave Ramsey. Renting is ok, say I.

CARS (All cars).                        15%
NEVER LEASE
(Max 36 months finance)
*Car payments
*Gasoline
*Insurance

Over? Sell them and drive a hoopty for a while (temporary)

Really?!! Yes. Find out what your car might be worth at kbb.com and sell your car and pay cash for a hoopty.

Remember, this is TEMPORARY.

 

Excellent! You have just stood in your truth!

I bawled for days, but soon, I saw the monster I was facing and how to begin fixing it.

For the first time in years, I had hope.

It’s time to hope!

Step G. Lowering your essentials coming soon.

Image from stillruns.com