Once I got my emergency fund saved up it was on to Step Two of the Dave Ramsey plan! This is the step where you are supposed to get out of debt using what Dave calls the ‘Debt Snowball’. That just means that you list out what you owe and start with the smallest amount. Pay that off as quickly as you can then move on to the next debt. Pay that off – and so on…and eventually you get it all paid off.
GOOD NEWS! Cause I don’t have any debt yet! Do you? As teens most of us are probably in a great position here. Hopefully you haven’t had time to rack up big debt so far.
If teens do have debt – it’s usually their parents that they have borrowed money from. If that is the case for you get started today on paying them back and make it a point to try and not borrow money from them again if at all possible. Instead of borrowing, think about delaying any purchases until you save up the money to pay for it with cash. So much better than owing someone money!
It might be easy to say that you don’t really have to pay back the money if it’s your parents you owe, but that is shortsighted. If you borrowed money and promised to pay it back then you need to be true to your word. To be a person of integrity you have to start being that person right now and not put it off until you are an adult.
So, if you do owe someone money – what is your plan to pay it back? How long do you think it will take? If you are debt free, good for you! You can move directly to the next step and start saving!