I heart Dave Ramsey

In the pursuit to simplify, my husband and I have been taking a look at our personal finances to figure out how to simplify our financial life. Really, it is a pursuit of financial health. One of my friends introduced me to Dave Ramsey and his financial wisdom, and we just love him. It is more of a biblical financial plan than a budget.

I agree with Dave Ramsey's ideas and principles about how to handle finances because it means having specific goals for your money and designating money for certain purposes. The idea is that if your money is already designated, you are less likely to spend it.

Dave Ramsey has seven baby steps to financial freedom, and sadly to say, I'm only on step two:

1. $1,000 to start an Emergency Fund
2. Pay off all debt
3. 3 to 6 months of expenses in savings
4. Invest 15% of household income into Roth IRAs and pre-tax retirement
5. College funding for children
6. Pay off home early
7. Build wealth and give! Invest in mutual funds and real estate

But is has totally changed how my husband and I look at our personal budget.

Check out more information about Dave Ramsey' Baby Steps.