When my wife married me, she married the large amount of debt that came with me. We spent years barely staying afloat, defaulting on checks and burning through my ability to postpone student loan payments. We had no idea how to handle our money until we took Dave Ramsey’s class, Financial Peace University.
What is it?
Financial Peace University (FPU) is a 10-week course that focuses on removing our poor understanding of money and helps us discover how foolish spending robs our ability to put money toward things that matter, whether debt or saving for our children’s college. From there, he helps us create a solid foundation for people to remove unnecessary expenses and start chipping away at their debt, setting people on a trajectory toward debt-free living.
Why it’s great
I imagine many people think they don’t have money issues. We live in a debt-laden culture and so few of us ever think there’s any other way to live but to be in debt. That mentality can be overwhelming for anyone with limited means, and without realizing it we end up digging ourselves a deeper hole with meaningless spending. In time, we end up spending thousands of dollars every year in areas that weren’t important but made us feel good at the time. Even worse, we pass that mentality on to our children.
FPU uses biblical principles to challenge that way of thinking. It teaches the importance of giving every dollar a job, whether it goes toward rent or gets set aside for a monthly trip to the movies. Dave Ramsey teaches his famous envelope system, which lets you easily see how much money you have for the important things each month, making it easier to know how much money can be spent on “fun” purchases.
The system requires the development of discipline and self-denial, and that can be exceptional painful. Those of us who have grown accustomed to making dozens of small purchases throughout the month suddenly have to face the reality of a firm budget. If the money in the “take out food” envelope is empty, we have to decide if we will just have a PBJ for dinner or take money out of the electric bill. FPU helps put things into perspective, but that perspective often reveals just how foolish we are with money!
My wife and I thought we’d get some good tips from the class, but never expected our entire way of thinking would be so radically changed. Although our discipline with money has had some rough times (especially around gift-giving times of the year!), the overall impact has been nothing but positive. We have talks about money, we can easily see if we have budget for certain Amazon purchases, and each year we find ourselves less-and-less in debt.
Final thoughts
I appreciate Dave Ramsey’s approach to money. He’s gracious, but he’s not a pushover. I imagine everyone will get upset at least once throughout the 10 weeks, but that’s often because we find the truth offensive. He uses biblical principles, and even encourages people to get out of debt so they can give to others, not just spend more money on themselves. Although some Bible verses are used out of context, the overall perspective on money and spending lines up with the Bible.
I recommend this class to everyone. For many people, this class can be the difference between leaving our children a nice inheritance or a massive amount of our debt. This isn’t a get-rich-quick scheme, nor does it even guarantee that following his principles will leave people millionaires. What it can guarantee, in time, is that we can always have money to fix the car, give to those in need, and eventually enjoy life without the ever-present anxiety that comes with living under debt.
If you’re interested, you can check out the FPU program here. There are 2 ways to take the class – online and in an actual class-like setting. Though online is obviously easier, I’d highly encourage finding a coach in your area who will teach a physical class. Being able to ask questions, be held accountable, and speak to other people in the group adds a lot to the overall success of the program.
