The document provides tips for becoming financially fit, including creating a budget to track income and expenses, avoiding debt by paying with cash instead of credit cards, buying cars and homes that can be reasonably afforded, and saving and investing money regularly for both short-term and long-term goals like retirement. The overall message is that financial responsibility comes from spending less than you earn and planning ahead to pay with cash instead of taking on loans and interest.

1. Becoming
Financially Fit

2. Step 1
• Sit down and make a BUDGET
• Know how much you have coming in and
going out every month

3. Debt is Dumb
• Credit card companies and banks will rip
you off and feel good about it.
• You’ll pay interest on purchases you made
years ago.

4. Average Americans
• Keeping up with the Jones’s doesn’t make
any sense (the Jones’s are BROKE!)
• Buy what you can afford. Afford = pay for.

5. Automobiles
• Never lease – its like throwing hundred
dollar bills out the window every week.
• Don’t buy new – major hit when you leave
the lot. 5 years later = loss of 40% of
value.

6. Automobiles Cont.
• Try to have no loan – work your way up to
a nicer car.
• Buy practical cars.

7. School Loans
• Try to pay as you go – you’ll have time to
work at least a part-time job.
• 6 months after you graduate
interest starts accumulating
on your loans.

8. Home Mortgage (loan)
• Put at least a 20% down payment – avoids extra interest.
• Payments no more than 25% of income.
• 15 year instead of 30 year.
• http://www.daveramsey.com/tools/mortgage-calculator/

9. Saving and Investing
• Continuously save for future purchases. Plan
ahead and pay cash when the time comes.
• Start saving early for retirement 10 – 15% of
your income.
• http://www.daveramsey.com/tools/investing-
calculator/

10. Summary
• Make more than you spend – do it on
paper before it happens (budget).
• Pay cash – no loans, credit cards.
• Responsible mortgages.
• Save money regularly for the short term.
• Invest money Regularly for the long term.

11. Financial Freedom
• Not tied down by a job you don’t like.
• Can give money away in huge amounts.
• No worries or concerns about you or your
family’s future.