# The 4 most important things for financial survival



## Todays Survival Show

Speaking from personal experience, I've found that the 4 most important things for living a secure financial life and freeing money from your worry list are as follows. I learned this from the 13 week Dave Ramsey (Financial Peace University) course I took 4 years ago. Dave Ramsey Homepage - daveramsey.com.

1. Paying off debt
2. Establishing a secondary income
3. Living on 85% of your primary income
4. Pay less taxes (if you're in business for yourself, that helps) by getting as many deductions as you can

Some people ask, which one should you do first? I say paying off debt. But there's nothing wrong with doing 2,3 and 4 at the same time you pay off the debt. What worked for me and my family is first setting a written budget based on 85% of the income we had at that time and sticking to it. In that budget included an aggressive debt payoff plan. Then find another way to make money, and look for every legal tax deduction and loophole you can.

We were able to get rid of about $31,000 worth of debt in 22 months. I'm embarrassed to say that we had that much consumer debt in the first place (mostly credit cards.) At that time our car was paid for and I drive a paid for company car.

You won't believe the financial peace of this. Dave Ramsey was correct in giving it that name!

So be thinking about how you will accomplish all 4 and make a written plan. I just used Microsoft Word and made my own plan. (I didn't know how to use Excel at the time.)

I firmly believe these are the FIRST goals you should make. It's pretty hard to prepare the way you want to if you're loaded with debt, spend too much, don't have any other source of income and pay too much in taxes.

Let me know your thoughts


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## NaeKid

I also agree with paying off all debt as quickly as possible. I am very (very) close to paying off my #1 debt (my house) and my #2 debt (my Jeep) is getting closer to being paid off and my #3 debt (camper) has next to nothing left owing on it (WildMist takes care of the majority of #3).

I'll be re-debting myself for the new house, but, with the money that I get from my old house, I should be completely debt-free within 4 years. WildMist will have some debt beyond that, but, working together it shouldn't take long for her to be debt-free as well


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## Turtle

Yeah, knocking out debt has got to be Priority Number One. 

My wife and I are in the process of doing that now. We have about 10K in credit card debt, which is almost entirely from our wedding (a little over a year ago). We paid about 20k of our wedding in cash, so it's actually relatively little debt between two people. One of the vehicles on my credit report will be paid off in about two months, leaving our other vehicles as our biggest credit draw. We have agreed to use all of our tax return for this year and as much of my bonuses as might be needed to knock out our debt and buy a house with some land in the next year. Of course, that will be a huge hit to our debt, but by then we will be largely free of other debt.


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## Jason

We have 2 more payments on the Liberty and it's OURS!! My truck's been paid off for about a year and a half. 2 more cards and we are debt free as well.


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## Todays Survival Show

Turtle said:


> Yeah, knocking out debt has got to be Priority Number One.
> 
> My wife and I are in the process of doing that now. We have about 10K in credit card debt, which is almost entirely from our wedding (a little over a year ago). We paid about 20k of our wedding in cash, so it's actually relatively little debt between two people. One of the vehicles on my credit report will be paid off in about two months, leaving our other vehicles as our biggest credit draw. We have agreed to use all of our tax return for this year and as much of my bonuses as might be needed to knock out our debt and buy a house with some land in the next year. Of course, that will be a huge hit to our debt, but by then we will be largely free of other debt.


Nice! I got to scream, "I'm debt free" (like Dave Ramsey says) about 4 years ago. It's a great feeling. Now I'm trying to figure out how to get a steady second source of income.


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## sailaway

I think getting out of debt is one of the most important parts of survival, debt must be manageable or it will consume you. There are two types of debt, consumer debt and investment debt. I am in favor of investment debt as long if it is manageable. You will pay a realestate investment off with cheap $s over time. The ones who get over extended will be consumed and eaten alive. Consumer debt is stupid, buying this outfit and eating here or there and puting it on a credit card is stupid, that is what the sheeple do.

I believe in using credit cards if you pay the balance off every month. I use mine to get free guns and cheap canoes from Cabelas or gift cards from Home Depot. Lots of free stuff as long as you pay the balance every month. The credit card companies hate me!:2thumb:


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## UncleJoe

sailaway said:


> Lots of free stuff as long as you pay the balance every month. The credit card companies hate me!:2thumb:


They'll charging fees for that before too long. I'm thinking before the new rules go into effect next month. Watch those cc statments.


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## sailaway

UncleJoe said:


> They'll charging fees for that before too long. I'm thinking before the new rules go into effect next month. Watch those cc statments.


Your right Uncle Joe, they are already upping the interest rate and shortening the billing to payment time. I have been weening myself off the credit cards and paying more cash for my purchases, it forces you to ask yourself if you really need this.


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## NaeKid

sailaway said:


> Your right Uncle Joe, they are already upping the interest rate and shortening the billing to payment time. I have been weening myself off the credit cards and paying more cash for my purchases, it forces you to ask yourself if you really need this.


I just ordered some prep-items on the weekend for delivery. I have no choice but to order via credit-card, but, I also have the cash on hand to pay off the invoice even before I receive the products.

I watch my bank-account online (that my CC is tied to) and when I notice that there is a charge on the card, I quickly pay it off before the paper-bill shows up in the mail.


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## pdx210

the only personal debt i have is my mortgage and that's minimal when we sold our last home we put over 80K on the new home and have been making extra payments on the loan. I remember the lender trying to sell us on keeping some of the cash and even a loan for trips or new car or...? 

even with then real estate market as it is i could dump this house at such an attractive price it would sell quick and i'd still walk with plenty of cash 

cars paid off,
no consumer loans, 
no credit cards,


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## HozayBuck

As I have posted in another thread yesterday, I just happened to check on a CC that I had paid off a few months ago, those bastards had upped my APR from a high 10 % to 23.+ APR....I canceled the card and chopped it, I then checked the only card I had a balance on and it had gone from 7 % to 14+ with no notice that I can recall.. it met Mr scissors too, if I don't have the cash I don't need it !! and it's too easy to get the ol new gun fever or whatever creams your twinkie and buy something you don't need... I'm bad about that...

Funny thing, when I chopped them I had this feeling of having done something positive!! and you can't beat that feeling..

Now to get myself to admit that I have no use for 40 guns... I can only shoot so many..and own some I haven't shot in years... gonna be hard but they are getting thinned out!...


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## GroovyMike

Right up there with paying off debt is pay no interest! Avoid all future debt. Simply by choosing to NOT take on any new debt I have eliminated all debt except my mortgage and I'm now making an extra half payment each month on that.

Dave Ramsey Rocks!


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## Todays Survival Show

That's cool Groovy Mike. I haven't got to the point of paying extra on my mortgage yet. That's my last step to accomplish on the debt snowball. Had some medical expenses that I had to pay cash for. 

Debt free = the FIRST step to survival.


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## surefirewizard

I completely disagree. Most of the members here seem to agree that the US economy is headed for a complete collapse and that hyperinflation will render the US dollar what it really is - worthless paper with ink on it. If we earnestly believe that this scenario will occur I can see no purpose for paying off debts prior to it happening. Indeed, I think doing the exact opposite is in order. Leveraging any and all lines of credit for cash in order to purchase items that will be needed if the aforementioned occurs. Food stockage, generators, diesel storage, tools, survival equipment etc etc. Use that money to purchase in advance the items your family will need in order to survive. By all means, pay the minimum on whatever loans you have in the off chance we pull out of this, but use any extra cash towards the above.

Given that the dollar will be nil, banks will lack manpower, and there will be no buyers - I can see no reason why they would try to take back anything they have claim too. Who will go to work if the money they are working for equals 0? Are you envisioning the chaos that will happen? Martial law will be declared. National Guard and Reserves will be mobilized to prevent looting and maintain order but this will be futile given the panic that will occur. People will be desperate for the survival items needed because they were unprepared; water, food, guns and shelter.

I pay my bills but I pay the minimum and use any extra cash for survival items. I plan on taking out loans to the maximum I can and use that money to purchase land up north in the middle of nowhere. Land that can yield food. Land that I can protect. The bank can try to come take it back over my dead and lifeless body. Where you squat will be yours to the extent you can protect it from those that want it.

This isn't a matter of 'if' but of 'when'. And when 'when' comes I plan on being ready. I hope that you are too because your not getting my stuff 

surefirewizard



Todays Survival Show said:


> Speaking from personal experience, I've found that the 4 most important things for living a secure financial life and freeing money from your worry list are as follows. I learned this from the 13 week Dave Ramsey (Financial Peace University) course I took 4 years ago. Dave Ramsey Homepage - daveramsey.com.
> 
> 1. Paying off debt
> 2. Establishing a secondary income
> 3. Living on 85% of your primary income
> 4. Pay less taxes (if you're in business for yourself, that helps) by getting as many deductions as you can
> 
> Some people ask, which one should you do first? I say paying off debt. But there's nothing wrong with doing 2,3 and 4 at the same time you pay off the debt. What worked for me and my family is first setting a written budget based on 85% of the income we had at that time and sticking to it. In that budget included an aggressive debt payoff plan. Then find another way to make money, and look for every legal tax deduction and loophole you can.
> 
> We were able to get rid of about $31,000 worth of debt in 22 months. I'm embarrassed to say that we had that much consumer debt in the first place (mostly credit cards.) At that time our car was paid for and I drive a paid for company car.
> 
> You won't believe the financial peace of this. Dave Ramsey was correct in giving it that name!
> 
> So be thinking about how you will accomplish all 4 and make a written plan. I just used Microsoft Word and made my own plan. (I didn't know how to use Excel at the time.)
> 
> I firmly believe these are the FIRST goals you should make. It's pretty hard to prepare the way you want to if you're loaded with debt, spend too much, don't have any other source of income and pay too much in taxes.
> 
> Let me know your thoughts


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## sailaway

Hosaybuck, good luck with 40 guns, I'm wrestling with getting rid of 8 Jeeps, can't decide which to keep. Mrs. Sailaway and I really went at it when she saw 6,7 and 8.


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## Todays Survival Show

surefirewizard said:


> I completely disagree. Most of the members here seem to agree that the US economy is headed for a complete collapse and that hyperinflation will render the US dollar what it really is - worthless paper with ink on it. If we earnestly believe that this scenario will occur I can see no purpose for paying off debts prior to it happening. Indeed, I think doing the exact opposite is in order. Leveraging any and all lines of credit for cash in order to purchase items that will be needed if the aforementioned occurs. Food stockage, generators, diesel storage, tools, survival equipment etc etc. Use that money to purchase in advance the items your family will need in order to survive. By all means, pay the minimum on whatever loans you have in the off chance we pull out of this, but use any extra cash towards the above.
> 
> Given that the dollar will be nil, banks will lack manpower, and there will be no buyers - I can see no reason why they would try to take back anything they have claim too. Who will go to work if the money they are working for equals 0? Are you envisioning the chaos that will happen? Martial law will be declared. National Guard and Reserves will be mobilized to prevent looting and maintain order but this will be futile given the panic that will occur. People will be desperate for the survival items needed because they were unprepared; water, food, guns and shelter.
> 
> I pay my bills but I pay the minimum and use any extra cash for survival items. I plan on taking out loans to the maximum I can and use that money to purchase land up north in the middle of nowhere. Land that can yield food. Land that I can protect. The bank can try to come take it back over my dead and lifeless body. Where you squat will be yours to the extent you can protect it from those that want it.
> 
> This isn't a matter of 'if' but of 'when'. And when 'when' comes I plan on being ready. I hope that you are too because your not getting my stuff
> 
> surefirewizard


Are you serious surefirewizard? I understand your message but totally disagree. IMHO you never want to take out loans to the maximum. It might be quite awhile before everything crumbles as you say it will. It probably will, but it could take years or decades. In the meantime, if you rack up debt you can't pay, it's not only immoral (if you don't intend to pay it back) but the payments will drown you. There could also be a restructuring after the SHTF event is over. During the rebound they may still come after you for the debt.

Debt free now, means more money available to put towards the preps you want. The power of having no expenses except your daily living expenses is awesome.


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## pdx210

What happens when you get fired or your hours at work are cut and can’t make the minimum payment? Even though it’s funny money the “funny money” is backed by investors that may have legal claim to your assets depending on what they are... tangible asset .. car, house, boat property, stocks, bonds, savings, the land up north cant really be hidden. The business of tracking dead beads will flourish 

credit cards have always have been a trap 

reduce your liabilities


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## HozayBuck

sailaway said:


> Hosaybuck, good luck with 40 guns, I'm wrestling with getting rid of 8 Jeeps, can't decide which to keep. Mrs. Sailaway and I really went at it when she saw 6,7 and 8.


No prob Dude 

Contact NaaKid...he's a jeep junkie, can't get the needle out of his arm!!

But then again, I found a 2005 I think jeep Liberty Diesel I think it was, 85 K on it, looks very clean...it's in MD... too far away for me...but NaaKid was excited about them..said they was good rigs..


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## Ponce

Is not only to be "out of debt" but also as to how much you need to live with, here where I am at we don't have state of local taxes to burden with and because I am retired I pay no Federal Taxes.

What I need to live with for a year, not counting gas or food, consist of $4,300 and that will pay for all my taxes, insurances, WWW, phone, power, heating oil and so on.

All that I have is mine free and clear and it includes about seven years of food.

"Plan for tomorrow and you will live like today"... Ponce


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## Todays Survival Show

Great point. Too many people have the notion that they need $millions when they retire. That depends on how much debt and how high their living expenses are. Good post.


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