I was going through my twitter feed for the latest news when I chance upon a link to a article in Time website titled "5 Powerful Books to Improve Your Life"
Decided to follow its recommendation and read Dave Ramsey's "The Total Money Makeover" from the National Library ebook app in my phone.
I finished the whole book within a week and was totally blown away by the lessons in the book. All along, I was busy studying to gain knowledge to get more wealth and income through stock investment, entrepreneurship, etc but I have neglected my personal financial foundation which is budgeting, saving and choosing the correct financial instrument for my savings and insurance. So it was like gathering money in a bag with holes at the bottom, whatever money you put in the bag just fall out of the bag.
Dave Ramsey teach a simple 7 baby steps to gain control of your personal finance which are:
Baby Step #1 - $1,000 to start your emergency fund
Baby Step #2 - Pay off all your debt using the Debt Snowball
Baby Step #3 - Fully funded emergency fund
Baby Step #4 - Invest 15% of income to retirement fund
Baby Step #5 - College funding for children
Baby Step #6 - Paid off mortgage
Baby Step #7 - Build wealth and give
For once, I have a definite roadmap and steps to building my wealth.
I have decided to go through the online Financial Peace University with my wife and will definitely share out learning and journey here in this blog.
These lessons would become our strong personal finance foundation after which we will then venture out to build our wealth and income streams.
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