But what lays beyond financial peace? I would say financial independence. This is when our investments earn more for us than our regular source of income.

TMMO Steps 1-3 Establish Peace

Establishing a budget is important. It’s how we determine what remains to put on the Debt Snowball (or Debt Avalanche). The budget alone provide an immense sense of peace. Knowing where each dollar is going ahead of time and that there will be some leftover at the end of the month is huge!

Then, through laser beam focus of income, the consumer debts get knocked out first. This may take 2-5 years depending on an individual’s or family’s unique situation. But it’s hard to invest for retirement until this obstacle is overcome. It’s tough to slay two dragons.

Remember that money being spent on Visa and MasterCard payments can’t be used to build wealth, either through retirement investing or something else. Paying off debt frees money to fund investment objectives.

TMMO Steps 4-6 Working Toward Independence

As a fiscal conservative, I prefer to take care of retirement needs before looking for a bigger better deal. But let’s say your retirement investing is covered. Then what? Paying off a home early is the simplest way to increase net worth.

But is there anything else we can do after (or even during) this phase?

Step 7, before Step 6 (or other Steps)?

Maybe due to timing, a husband and wife in their late 40s or early 50s enjoys a very low mortgage rate. Some people may wonder whether it even makes sense to pay off a 3.5% mortgage early. Saving on amortized interest can be huge. But maybe there is a bigger better deal…

Each of us has a limited amount of time here. Just 32,850 days if we live to be 90. This isn’t a time trial for the actual race. As such, I am compelled to also recognize the desire to live while we can. As mentioned in the lead, recent life events are having an impact on the way I process.

The Total Money Makeover doesn’t really elaborate on what to do in “Step 7: Build Wealth.” All I know for sure is that Dave Ramsey is a real estate guy. But beyond that, TMMO readers are on their own.

That raises the question… is there such a thing as constructive debt? Can a person start a business using a home equity line of credit or a business loan? Many entrepreneurs have taken a calculated risk to turn their passions into value-providing business ventures. And calculated risk sometimes includes leverage.

What About Enjoying Life?

As I’ve noted, life is short. To that end, is it okay to just enjoy the fruits of our labor? You know, reap what we have sewn? Maybe you have dreams of traveling, becoming a beach comber, or possibly even living abroad.

Just something else to consider today. TMMO instructs us to live like no one else, so later you can live like no one else. After this week, I am realizing that there may not be a “later.”

What are your thoughts? And what’s your dream?