The Dave Ramsey Snowball

What If There is No Snow(money) To Get Started

If you have never heard of Dave Ramsey, you are missing out on one of the best resources for saving money and getting out of debt that has come along this century.  Dave helps bring down the reality of living frugal, yet not doing totally without.  Most people who are having trouble making ends meet just don’t know where to cut out unnecessary things, or how to say no to impulse buying.

However, there are some people, who through no fault of their own, can barely afford to keep a roof over their head.  Maybe this is due to a company layoff, or extreme illness of the bread winner.  Whatever the reason, saving money to them seems like an impossible task.  What most people end up doing is buying groceries and paying the mortgage. Beyond that they try to pay other bills, but usually get behind.

The Dave Ramsey snowball is in fact part of his baby-steps program.  The snowball effect is baby step number two.  Here is a brief recap of how the Dave Ramsey snowball theory goes.

You take bills with a huge balance, like credit cards, and start paying off the smallest one first.  This may seem backwards but there is a reason for going after the smaller debts first.  Dave says to pay off the smallest debt first, then next month you take what you have been paying on that small debt, and add it to the amount you pay on the next smallest debt.  This creates what is known as the snowball effect.  As you pay smaller debts off the amount of money you are able to pay on other debts increases, like the size of a rolling snowball.

Need Money To Start the Dave Ramsey Snowball?

Well this is an excellent way to get out of debt, but what about people that don’t even have enough money to get the snowball heading downhill?  You need a little extra cash to get the first bill paid down faster, so this article is about some ways to come up with that extra cash.

In order to really make a difference in how much you spend you have to be committed to making it work.  How many times have you heard you should car pool, or run all your errands just one day a week?  I can tell you that since I started doing all errands and shopping just one day per week, my gasoline bill has gone down tremendously.  Save all your trips to town for one day and mark out a route for the order in which you will do your errands.  This way you won’t be backtracking and wasting fuel.  I even took this step a little further and share errand day with a neighbor.  One week she drives and the next week I drive. This one thing saves me almost $30 per month.  Can you see that phone bill getting paid now?

One of the best ways I have cut expenses is to cook from scratch.  I am sure some of you younger readers out there may not even know what that means.  Cooking from scratch is not convenient, but it is cheap, and nothing can compare to the great taste.

The money you can save by cooking from scratch will help get that Dave Ramsey snowball going in no time at all.  Many people who have thought it was hopeless can now see how they can save money, and eat better.

Here are some examples of how cooking from scratch can save you money.  I was paying almost $1.50 for canned biscuits because my husband loves those really large biscuits, but now I have figured out that I can make them myself so cheap.  This is one area where I feel it is okay to cheat just a little.  Buy a box of Bisquick or Pioneer baking mix for this.  The reason why is the box is extremely cheap and has the flour, baking powder, salt, and other ingredients already in the box.  This one item will make pancakes, cookies, biscuits, cinnamon rolls, and much more.  This should be a staple in every one’s home.

If you have a bread machine, make homemade breads, and find creative ways to use pasta and rice.  Sit down and think of recipes that you could make from scratch.  How long has it been since you made a good old pot of chicken and dumplings?  One chicken can feed a family of four for two meals.  Use part of the chicken for chicken and dumplings, and then make chicken salad for lunch sandwiches with the rest.

Cooking From Scratch Helps Feed The Dave Ramsey Snowball

And if you like Mexican foods, it is great to eat, and the cost is very low.  Just cook your own beans to make re-fried beans, and cook up your own Spanish rice.  Enchiladas, tacos, and fajitas are so easy to make.

If you just use your head and come up with some great ideas for home cooked meals from scratch you will see you grocery bill go down at least $200 per month, in most cases of a family of four or five.

So is your mind whirling with ideas?  How big a dent could you make in your debts using the Dave Ramsey snowball with that kind of money?