Week #1 Review of FPU
As I mentioned, I wanted
to help walk you through my experience with Dave Ramsey’s Financial Peace University (FPU). It is a 13 week course designed to teach you everything you need to know about personal finance. Now, I must admit that for this review, I am basing it on the audio version of the DVD’s. I missed the first week due to my Ten Year wedding anniversary cruise, but I feel that I was sufficiently able to get the lessons from the audio version. I did miss out on the post-discussion with our small group which I know had to very interesting.
This lesson was titled “Super Saving” and as you can imagine it dealt with the benefits of saving and having an emergency fund. He describes the emergency fund as an “umbrella for a rainy day” because at some point for everyone “its going to rain.” The stories about how people use credit cards for the “unexpected” emergencies, such as car repairs, kids growing out of their clothes, and Christmas were very funny.
His main point was that credit cards were being used as emergency funds and was not a very good plan. The emergency fund should also be kept in Money Market account or Savings Account; and should not be expected to make you money since it should be considered “insurance”. In his opionin, insurance costs you money and shouldn’t make you money. Dave also mentioned the emergency fund is not a new couch fund; which made me laugh.
With regards to saving for retirement, he provides great examples of the power of compound interest. Specifically, pointing out how investing at a young age can “easily” make you millions by the time you retire. The lesson was powerful when he showed how someone who only invested $2,000/yr from ages 19 to 26 years then never invested another penny would outperform at age 65 than someone who invested the same $2k/yr beginning at 27, but who kept investing until age 65.
Mostly, the lesson was a good primer into the overall goals of FPU; which are to be prepared for emergencies and retire with dignity which would seem to be prime ingredients for Financial Peace. I know while I was listening and hearing his stories and anecdotes; that my spirits were uplifted and I felt inspired to accomplish the goals that were set out. I could feel the emergency fund and its security.
As homework for the class, we were instructed to begin doing a Quickie Budget, using the forms in the membership kit. Also, we needed to begin trying to scrape together a starter emergency fund of $1,000 as quickly as possible for Baby Step 1. Next time, I will discuss the lessons from Week 2 and I actually will attend in person.
Financial Peace University
I have ju
st started attending a Financial Peace University class at my local church. It is a 13 week class taught with a 60 minute DVD and 60 min discussion of the material. The class is suppose to teach you how to handle your money and put you on a path to “financial peace.” The membership kit advertises that the average family eliminates $5,300 in debt and saves $2,700, while in Financial Peace University (FPU).
I would like to share my weekly experiences and the progress that I am able to make over the series. I do consider myself very knowledgeable on the “Ramsey Plan” having attended his live “Total Money Makeover” event this past September, listening to his radio show and reading some of his books; but I am sure there will be more in depth discussions in the DVD as well as the small group discussion after the DVD’s that will really complete my understanding of finances.
I purchased the kit through my church for $93 which is discount from the Ramsey website. Inside the kit are the following:
Dave Ramsey’s book – Financial Peace University
FPU envelope system wallet – with additional envelopes
13 Audio Lessons on CD – audio versions of the DVD shown in the class
Budgeting Forms
FPU workbook
Bonus CD with financial software and resources (one for you and one to share)
Debit card sleeves, and tip calculator cards
Unfortunately, I will be missing the first lesson, but will do a review based on the audio portion of the DVD that is provided in the FPU membership kit. I thought this might be useful to others to determine if the class is for them.
New Year’s Thoughts
Well 2009 has come and gone. And just like every year before, we are amazed at how quickly it passed. Some years seem to evaporate and are never thought of again; while some years provide moments and events that will be storied benchmarks in our lives. 2009 will be remembered by for the latter.
I want to wish everyone a Happy New Year and I hope all your resolutions become real habits. 2010 will be a fresh start for many; so let’s not waste it!
Dave and Suze on Life Insurance
Many people are ignorant when it comes to what type of Life Insurance policies are best for them. Listen to Dave Ramsey and Suze Orman explain what life insurance is best for you and which type of life insurance is a “ripoff.”
How slack are the reins in your life?
In previous posts, I have talked about how I have been able to take control of many facets of my life since I began to flex my financial muscles. Specifically, I am talking about my weight and my fitness level. Over the years, I had become sloppy in many ways. Sloppy in my finances, my family life, my self-control, my spirituality, and my health.
As I was tightening the slack reins I had created over my young adult years, I begin to think more about issues I had ignored in my earlier years. I had previously been denied a life insurance policy at work due to elevated liver enzymes. I never really got too involved in the enzyme issues. Earlier this year, I began to research individual Health insurance plans and HSA’s to see if I could save money from the insurance I was being provided at work. When I went to apply for the insurance, I was again confronted by a similar enzyme issue. 
At this point, I was not the same person who 7 years before just ignored this issue. I took charge and went to a specialist to figure this out for once and for all. The doctor basically said my weight was probably contributing to the abnormal test results. So I made a point to focus on my weight that had ballooned since I started my first desk job 10 years before. I begin running 3-4 times a week and to start focusing on my diet.
When I went back for my follow-up three months later, my doctor was amazed at my weight loss(17 lbs); and the fact that I listened to his advice. I had another test done and everything was back in normal ranges. I have since lost another 15 lbs and weigh less than I did on my wedding day.
Once you decide that to start making changes, you will see other differences in your life. It may not weight loss, but it will be something. Taking control of your life gives you the power to be the who, what, where, when, why, and how in your life. So quit being sloppy in your life, and pull those reins tight!
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