You can buy it if you want but I’ll give you the first three steps for free.
1. Build up an emergency fund of $1000. This is to only be used in case of emergencies (and no shoes don’t count as an emergency). The thought behind it is with some cash in the bank you have no reason to use a credit card and have some piece of mind (very true by the way).
2. Pay off all your debt from smallest to largest. Make the minimum payment on everything but your smallest debt. By paying off the smallest debt first you get momentum and also start getting rid of debt quickly. Once you start then you won’t want to stop. By the way this does not include the house – just other debt (credit cards, student loans, etc)
3. Save 3 to 6 months worth of income. So after all the debt is paid off you take that extra money and save up 3 to 6 months worth of income. This is the freedom step in my opinion. Seriously – there is nothing like knowing that if your job went away tomorrow you’d be ok for the next couple of months. It was also critical for me to leave the world of the employee and become and self employed.
Tim Castleman teaches internet marketers how to help offline businesses. In this post he was explaining how to get out of debt and manage your money so you have something to work with in your own business.
I like his posts because he offers real practical advise.