Dave Ramsey's Financial Peace University

In April my church will be offering Dave Ramsey’s Financial Peace University, a 13 week boot camp in financial literacy. I have read Dave Ramsey’s book The Total Money Makeover. I am currently studying the material in the Church Leadership Kit both to get a sound understanding of the content and to begin visualizing the classes I will be coordinating.

For those of you not familiar with Dave Ramsey, he puts on a real show. His delivery is one part evangelist, one part cheerleader, one part blue collar comedian, and one part drill sergeant. If nothing else he is passionate. His message is simple. It boils down to setting priorities, developing a plan, and not deviating from that plan for any reason. Like a high school football coach, he is not interested in your opinion or possible alternatives. He is interested in convincing you that if you do it his way you will win the state championship. It isn’t subtle. It isn’t nuanced. It isn’t analytical. It does work. Dave has thousands of testimonials, ending with the battle cry, “I’M DEBT FREE!”

The course, like football practice, is repetitive. Dave Ramsey demands the audience finish his sentences over and over to drive home key points. He uses visual (DVD) presentations. He covers the same material for auditory learners by means of the (CD) set. He has a class workbook and homework for the kinesthetic learner. The homework will also force the participants into a planned budget that will allow them to take the seven baby steps to financial freedom. Finally, the small group meeting following the DVD presentations is there for accountability. Dave is big on accountability.

There is a wealth of material in the student’s course material including the CD set, a workbook containing all sorts of budgeting and planning forms, as well as such things as sample letters for dealing with debt collectors. The student kit also contains a hardback book, Financial Peace Revisited, and his deluxe envelop budgeting system.

I am excited.

Dave Ramsey’s Seven Baby Steps

1. Start a “beginner” emergency fund of $1,000
2. Start and complete a “debt snowball” except for a house mortgage
3. Create a fully funded emergency fund equal to three to six months’ takehome salary
4. Invest 15% of household income into Roth IRAs and pretax retirement
5. College funding for the children
6. Pay off the house early
7. Build wealth and give