I am currently working on a program to get out of debt. I had my "I've had it moment" in early January 2006 when I realized that I was out of control debt wise. We had a family funeral in Chicago and had to charge the entire trip and I decided that I was done using other peoples money to pay my expenses. We have cut up all credit cards and closed all accounts and at this posting we have gone 51 days without using credit.

We decided to start living on a strict budget and start paying cash for everything. We are living out of envelopes and giving every dollar a particular assignment for the month. Every dollar has a name and we are strict about sticking to it. This takes some forethought and some planning, but if I spend 160 hours a month working, I can certainly spend one hour a month telling my money how to behave. Living on a budget has been very worthwhile.

The most important step to a successful budget is to learn the concept of satisfaction. If you can be satisfied with what you have and can get, then you will be able to make this work. The plan we are using was thought of by Dave Ramsey. He is a radio host who has been broke and is now wealthy and helping others get there too. His plan utilizes seven steps he calls "baby steps." They are as follows:

1. Save $1000 dollars as a mini emergency fund
2. Pay down debts in order of lowest balance to highest balance
3. Establish an actual emergency fund of 3 to 6 months expenses
4. Invest 15% of all household income into Roth IRAs and pre tax retirement funds
5. College funding for children
6. Pay off house early
7. Build wealth and give!!

Before starting the baby steps it is very important to get on a monthly budget. Without a budget, you will likely keep utilizing the same bad habits that got you into debt in the first place. It is also very important to stop using credit cards and to stop borrowing money. You can build expenses into your budget that will prevent things from being emergencies that aren't really emergencies, like our aforementioned funeral in Chicago.

The most important step in the baby steps is the $1000 emergency fund. Having this fund will stop you from having to use credit for when real emergencies arrive. Determining what a real emergency is will be difficult at first, but should get easier as you go.

The inspiration to do this comes from thousands of other Americans who have done this very thing. They have chosen to stop using other peoples money and live on less than they make. I tell anyone who will listen what I am doing because I think verbalizing it lends to accountability which is very important when trying to radically change habits which are in some cases three decades ingrained. I also hope for prayers by telling people because ultimately your path will be cleared by the Lord and Savior Jesus Christ.

Dave Ramsey's famous quote is "Live like no noone else so that later you can live like no one else." This is a great sentence to carry around in your wallet or to memorize and remind yourself that only through discipline will change occur. If you keep doing the same things you have been doing you will keep getting the same results. I chose to change my habits and change the course of my family's financial future. I hope to be the last of the Moriarty's that has to struggle financially through debt.