Dave Ramsey question

iVillage Member
Registered: 05-09-2005
Dave Ramsey question
11
Sun, 07-03-2005 - 3:39pm
Hi,
I have been reading some of the Dave Ramsey info -- I'm wondering about the emergency fund. How do I fund it really -- I'm spending every penny I can get on trying to pay down the almost 40,000.00 we have in credit card debt. We had paid it down to about 33,000 after lurking somewhat on this board and getting motivated. Then our dog got really sick, and before we knew it, we owed an additonal 7,000.00 so back up our debt went. So do I cut back just a little on the credit card payments and add to the emergency fund? I just got one of those ING savings account fliers in the mail -- they would give me 25.00 for opening the account. Anybody have one of these accounts? Are there any surprises with this account.
Thanks for the advice.
Megan

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iVillage Member
Registered: 11-13-2004
Sun, 07-03-2005 - 3:59pm
With the Dave Ramsey plan you want to have at least $1000 for your starter emergency fund. I would make just the minimums on your credit cards until you have at least $1000 to start. In his book, "Total Money Makeover" he suggests selling things, getting a second job, things like that, anything you can do to fund it. Then after you have $1000 then start to pay off your debt, by starting with the smallest balance and pay everything extra to that until it is paid off and then go the next one. But get that $1000 in place first. Good luck!
iVillage Member
Registered: 03-22-2005
Sun, 07-03-2005 - 4:09pm
I know it is really dificult to come up with money for another payment, but have you checked into pet insurance? After spending close to $3000 for my dog's knee surgery, I got him an policy that covers majoy medical expenses plus two free checkup per year and one free dental cleaning. It was a few years ago but it was approximately $17 per month.
iVillage Member
Registered: 02-06-2005
Sun, 07-03-2005 - 4:13pm

We used the Total Money Makeover Plan ourselves, and paid off about $10K in credit card and medical debt in 13 months.

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iVillage Member
Registered: 05-09-2005
Sun, 07-03-2005 - 4:35pm
Hi,
You are so right about the pet insurance. If we ever get another pet we will definitely do that! Lesson learned.
Megan
iVillage Member
Registered: 05-09-2005
Sun, 07-03-2005 - 4:38pm
Hi,
Thanks to all of you who responded. I'll get working on the emergency fund. I can see that if we had it, we would stop floundering when we get hit with unplanned (or even planned) expenses.
Megan
iVillage Member
Registered: 02-06-2005
Sun, 07-03-2005 - 6:10pm
If it makes you feel any better, most people have emergencies come up while doing the Debt Snowball.
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iVillage Member
Registered: 12-12-2004
Mon, 07-04-2005 - 12:15am
Hi, Megan. Have been reading the posts and agree---it is wise to start the emergency fund. I, too, ran up lots of vet bills but then got pet insurance. I have it debited from checking account each month. I found it hard to start the emergency fund, because I was always "raiding" my accounts. So, I did what the cl's suggested---I got a credit union account and have about $200/month going to the emergency fund. Since it is at a far-away place, I am not tempted to get the $$ out. Thus far, I have about $400 in it. IF I would have left my savings account alone for 5 yrs, I would have had a tidy $5,000 in there. Oh well, lesson learned. Good luck to you. Whiz.
iVillage Member
Registered: 05-09-2005
Mon, 07-04-2005 - 4:18am
Hi,
For sure we will get the pet insurance if we get another pet (and I'm pretty sure we will).
I plan to open a savings account. I did find out that you have to have "quicken" or something similar to access an ING account. But maybe I should learn how to use this anyway to track our spending? One thing I have found out is that if I balance my checking account every day it really helps -- because then, in the back of my head, I know how much money I have and what I have been spending it on. 40,000 is a long way to go, but hopefully things will stay on an even keel and we can start to make a dent in it.
Thanks for the advice.
Megan
iVillage Member
Registered: 08-16-2004
Mon, 07-04-2005 - 1:31pm

Megan,
I don't think that is correct about needing to have quicken or some such to access an ING direct account. I just opened one a few weeks ago, and just needed to set it up to work with my checking account with my local bank. I can access it right over the WWW. The interest rate is 3% right now, which is fantastic. This is my new emergency fund. It's very small right now, but it's a start.

SpyWeb

iVillage Member
Registered: 05-09-2005
Mon, 07-04-2005 - 1:52pm
Hi,
Someone wlse just told me the same thing! I'm so glad to know that -- I'm going to open the account today.
Thanks!
Megan

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