Total Money Makeover!

I am feeling motivated! Nathan and I just finished listening to the "Total Money Makeover" audio book. Dave Ramsey has a talk radio show on 570 KNRS that I usually listen to on my way home from teaching computer class. I love listening to him because he gives great advise about getting out of debt and investing. Anyways, he is always talking about his "baby steps", so I felt intrigued and needed to know more. The baby steps are (important to do them in order):

#1. $1,000 to start an Emergency Fund

#2. Pay off all debt using the Debt Snowball

#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

We are on baby step #2 which is requiring a lot of self control on my part. I am an impulsive spender and very good at justifying my purchases. Ask my husband--he will tell you ALL about it. But I am motivated, so I am trying to be less impulsive by paying for things I want with cash instead of whipping out the credit card. It hurts more when I have to part with cash, so I am purchasing less.