For those following the Dave Ramsey program let me tell you about what I believe is the most dangerous step in the plan.
Baby Step 3 aka BS3.
BS3 is like that gangly stage between being a child and an adolescent. It just isn't pretty and easy for most people to do.
There is so much focus in Dave's program to get debt free and experience the freedom that allows. And yes, that is a huge part of it. But so many think when you finish BS2 the money suddenly starts becoming available again and a return to an earlier life.
IT DOESN'T.
And to a point, Dave does not strongly address this stage of the program. And while I'm not in Dave's head, I think it's rooted in him being so thrilled you've made it this far.
And intuitively, you'll know the score.
I disagree with him on that. I've read too many times on his forum and others from so many expressing that they've experienced a let down, a loss of intensity and the loss of a focal point. And honestly, I experienced it too.
Again, BS3 is a very dangerous step for many people.
For it is also during this step that you realize that the snowball you've been sending to creditors now will be sent to savings or sinking funds or retirement or extra house payments or college funding. In other words, most people will find that money used to pay off the snakes will be used for other purposes other than fun type freedom.
Even though you're paying you and your family now, they aren't this evil being that needs eradicated from your life like the credit cards and car loans were. That represents a huge paradigm shift that many need to be aware of and need to learn how to address so they can shift their focus.
So it's not time for freedom yet, because at this point, you've only laid a foundation for freedom to be built upon.
But your mind begins saying, I made it, I'm debt free, so why not go back to the old ways. The old temptation virus.
But let's face facts. Budgeting and sticking with it is just as if not more important than when you were in BS1 and BS2. Because as the intensity on getting BS2 debt free abates, the temptation sirens begin to show up and start singing their songs.
I so agree with others who have developed a thermometer or some other chart to keep track of BS3 progress. And to have mini celebrations when you make it to a milestone. Intensity, goals, milestones and celebrations. All very critical and import.
One note of caution. If you were in BS2 for any period of time and were very intense, BS3 is where Murphy shows up to be paid for all those things you put off while being intense. So it may be two steps forward, one step back for a while.
Stay the course and find creative ways to stay intense. And win!
Monday, January 19, 2009
Sunday, January 18, 2009
Getting to the Starting Line
It's been too long since I've added anything to this blog.
As I sat in church this morning, I was thumbing through one of the weekly magazines found at our welcome desk. An article, while not related to money, got me to thinking about why some people never seem to get ahead or really begin working on their financial journey.
Writer Mark Atteberry tells the story in the 1/18/09 issue of "Christian Standard" about going to a professional football game. Four young guys were seated in front of him. One struck up a conversation and related he had never been to a professional football game in person.
Atteberry writes that the young man still hasn't.
Why?
Throughout the game the gentleman was caught up in everything around him but the game. The concessions, the beer, the women, the wave and numerous trips to the restroom to part with the previous session with the beer. So caught up in all the things going on around him he missed what happened during an important and exciting play. Simply put, while in attendance, he missed the game.
How many people have you met working on a financial plan that are the same way?
Caught up in the details of living on an envelope system and how many and what categories need created. Caught up in the details of couponing and making sure you double, triple or even get a refund on every purchase. Caught up in the details of reading the latest guru and their spin on the age old process of living wisely, on less than what you make, on not getting caught up in debt and trying to impress people you don't even know or may not even like.
Sometimes the best plan of action is to get to the starting line. In one simple word...........start.
Sure, it won't be perfect. It may not even be pretty. But it's a start. A beginning.
Instead of worrying about all the stuff going on around you, like envelopes, coupons, spending plans and debt payments, get to the starting line and being to take control. Control of the situation begins the process of hope. And hope can make great things happen.
Let that start reveal where the changes and tweaks need made and what to leave alone since it is working like a well oiled machine.
Don't be like that young man who may have gone to his only professional football game in his lifetime......and missed it by watching and being concerned with everything going on around the game but the game.
Don't worry about all the peripheral details. Get to the starting line. And start.
Experience and wisdom will take care of the details.
As I sat in church this morning, I was thumbing through one of the weekly magazines found at our welcome desk. An article, while not related to money, got me to thinking about why some people never seem to get ahead or really begin working on their financial journey.
Writer Mark Atteberry tells the story in the 1/18/09 issue of "Christian Standard" about going to a professional football game. Four young guys were seated in front of him. One struck up a conversation and related he had never been to a professional football game in person.
Atteberry writes that the young man still hasn't.
Why?
Throughout the game the gentleman was caught up in everything around him but the game. The concessions, the beer, the women, the wave and numerous trips to the restroom to part with the previous session with the beer. So caught up in all the things going on around him he missed what happened during an important and exciting play. Simply put, while in attendance, he missed the game.
How many people have you met working on a financial plan that are the same way?
Caught up in the details of living on an envelope system and how many and what categories need created. Caught up in the details of couponing and making sure you double, triple or even get a refund on every purchase. Caught up in the details of reading the latest guru and their spin on the age old process of living wisely, on less than what you make, on not getting caught up in debt and trying to impress people you don't even know or may not even like.
Sometimes the best plan of action is to get to the starting line. In one simple word...........start.
Sure, it won't be perfect. It may not even be pretty. But it's a start. A beginning.
Instead of worrying about all the stuff going on around you, like envelopes, coupons, spending plans and debt payments, get to the starting line and being to take control. Control of the situation begins the process of hope. And hope can make great things happen.
Let that start reveal where the changes and tweaks need made and what to leave alone since it is working like a well oiled machine.
Don't be like that young man who may have gone to his only professional football game in his lifetime......and missed it by watching and being concerned with everything going on around the game but the game.
Don't worry about all the peripheral details. Get to the starting line. And start.
Experience and wisdom will take care of the details.
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