How I did it: We concentrated on putting any and all extra cash to savings.  We found Dave Ramsey and did zero based budgeting to free up extra cash.  We listened to his "Financial Peace University" CDs and read his books "Total Money Makeover" and "Financial Peace Workbook" for ideas.  I also practiced being more frugal and kept myself accountable by posting on on-line communities.  We planned on a set amount to go to savings every payday.  Then, at the end of the pay period, we put any extra into savings too, rather than spending it.  We postponed any big purchases over $50.  I filed away my credit cards in DH's office, where I had to go past him to use them.

Lessons & tips: Be consistent and plan ahead.  Determine how much you're going to set aside each pay period and just do it!  Any extra money that comes your way should be sent directly to savings too.

Resources: Dave Ramsey's "Financial Peace University" CDs.

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Dec 25, 2008, 04:28PM PST | 0 comments | 1 cheer