Financial guru Dave Ramsey says, "Live like no one else so that later you can live like no one else." You have undoubtedly read my posts on this blog supporting Dave's plan. Here it is in a nutshell:
1. Aggressively pay off debts. Using "gazelle intensity", focus on paying off one debt at a time beginning with the smallest one first. This "debt snowball" will gather momentum as you pay off debts until one day you become debt-free.
2. What to do with all that extra money (Part 1)?
a. Set aside some money in an emergency fund.
b. Invest in your retirement.
3. What to do with all that extra money after fully funding the emergency fund?
a. Continue to invest toward retirement.
b. Give to charity.
c. Save money to buy things with cash so that you'll never have debt again.
I am happy to report that we are at step three finally. My reward for "living like no one else" is that I get to by a new(er) car. My 1996 ex-cop car is flirting with 180,000 miles. It still runs very well, but is getting a little rough around the edges. Sometime in early 2008, I plan to buy a 2004 Ford Police Interceptor with less than 70,000 miles. Why another cop car you may ask?
#1: More power. The 2004 model is the first to offer 250 horsepower and nearly 300 ft lb of torque.
#2: Better handling. 2004 was the first year that Ford placed the rear shocks outside of the frame rails giving the car a sportier ride and more stability when cornering.
#3: Sleek looks. The newer body style of the 2004 "Crown Vic" is way cool to look at.
Why a cop car in the first place? There are very few choices when one desires a rear wheel drive, V8 powered, four door car. BMW and Mercedes are about the only other options on the market, but who can afford those? The Interceptor also has heavy duty shocks, an oil-cooler, a transmission cooler, a high-amp alternator, and of course- a spotlight to aim at drunks downtown (just kidding). Besides, no one pulls out of the fast lane to let a Beemer or Mercedes by, but you can bet your ass a new cop car will move 'em over.
"Livin' like no one else"- that pretty much sums me up wouldn't you say?
2 comments:
You really can't argue with Dave's theories can you? We don't have a ton of debt but are following the plan and it is interesting to see how much it affects your life in so many areas. I had heard of him but really checked into it after reading what your family accomplished a while back. Congrats! - Dawn
Tell Bethany that her favorite High School Volleyball Coach says Hello. And.. that she really should e-mail once in a while. :)
Coach
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