Dave Ramsey ?
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Dave Ramsey ?
| Sat, 04-11-2009 - 8:46pm |
Hi all,
I have decided to revisit and get serious about the Dave Ramsey method and I have a question. On his "Getting Started" page he lists the following 7 steps:
1. $1,000 to start an Emergency Fund
2. Pay off all debt using the Debt Snowball
3. 3 to 6 months of expenses in savings
4. Invest 15% of household income into Roth IRAs and
pre-tax retirement
5. College funding for children
6. Pay off home early
7. Build wealth and give!
Here is where I am at:
1. We have about $4,000 in savings - is savings the same as an efund in my case since I have not tackled #3 yet?
2. This is what feels like it will take us well into our retirement!
3.Must tackle #2 first. How is this different from #1 at least in the initial amount?
4. Both DH and I put 5% into retirement now
5. Not relevant to us since we do not have kids
6. Down the road not worrying about this now!
7. Way WAY down the road.
Thanks for any clarifications!
I have decided to revisit and get serious about the Dave Ramsey method and I have a question. On his "Getting Started" page he lists the following 7 steps:
1. $1,000 to start an Emergency Fund
2. Pay off all debt using the Debt Snowball
3. 3 to 6 months of expenses in savings
4. Invest 15% of household income into Roth IRAs and
pre-tax retirement
5. College funding for children
6. Pay off home early
7. Build wealth and give!
Here is where I am at:
1. We have about $4,000 in savings - is savings the same as an efund in my case since I have not tackled #3 yet?
2. This is what feels like it will take us well into our retirement!
3.Must tackle #2 first. How is this different from #1 at least in the initial amount?
4. Both DH and I put 5% into retirement now
5. Not relevant to us since we do not have kids
6. Down the road not worrying about this now!
7. Way WAY down the road.
Thanks for any clarifications!


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Thank you all for the help in understanding. It's good to know that some people tweak the Dave Ramsey steps and still succeed. For me, in this economy, I just can't take any of our current savings to pay down debt. It's not much but knowing I have one mortgage payment (plus a little more) is a comfort for me.
So I guess I can say that I have my efund and now have to focus on paying down debt.
I am going to head to the library Monday to see if I can check out a copy of Dave's book.
Dave Ramsey provides a sensible guideline, but in light of your anxiety it would not help your stress to apply all your cash, except $1,000, toward debt.
I watch old Dave all the time He makes me laugh.
Suze I like her more. It is funny tonight she was talking about expenses in saving. Her thing is 8 months now used to be 6 months. But she says it is taking people longer to find work these days that is why she raised it to 8 months. Makes sense.
She says. House payment
Personally, I'm not a fan of the financial gurus.
Mckeekitty,
It does baffle me that these gurus charge what I consider quite a bit to learn how to get out of debt. I did some more investigation into Dave Ramsey's site and will not be paying for any of his advice. I would like to get his book from the library and see if there are any tips I can pick up from it.
For me his envelope concept might possibly work well - I do know that I have to start only carrying cash. Debit cards make my spending too "invisible" to me.
No need to pay for anything.
My parents (well...my mother...she handled the budget/finances.
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