Dave Ramsey ?

iVillage Member
Registered: 06-25-2006
Dave Ramsey ?
16
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!

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iVillage Member
Registered: 03-26-2003
In reply to: smoochdog
Mon, 04-13-2009 - 6:16am

I would leave your savings alone. In this economic climate I think it's wise to have a larger balance in your emergency fund.

I would focus on the debt snowball and stick to it. Pay off smallest to largest, focus is the key.

You don't have to pay for anything to follow his plan. You can get his books from the library, all of his radio shows are archived on his website, and he's on a ton of AM radio stations every weekday and on Fox Business channel every night at 8:00 pm Eastern.

Dave Ramsey's plan helped us pay off $46K in 15 months. Listen to his Debt Free Friday's. If that doesn't inspire you, nothing will.

Sue

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iVillage Member
Registered: 08-04-2008
In reply to: smoochdog
Mon, 04-13-2009 - 8:55am

I don't honestly think the book is worth it, you have the steps there, but missed a BIG one imho.




iVillage Member
Registered: 03-17-2003
In reply to: smoochdog
Mon, 04-13-2009 - 10:00am

Why is his mug on billboards?

iVillage Member
Registered: 05-30-2003
In reply to: smoochdog
Mon, 04-13-2009 - 10:22am

I agree that it's silly to buy the envelope system.

iVillage Member
Registered: 12-29-2008
In reply to: smoochdog
Mon, 04-13-2009 - 10:33am

Amen, Carolyn.

iVillage Member
Registered: 03-17-2003
In reply to: smoochdog
Mon, 04-13-2009 - 12:17pm

Judging from what I'm hearing you and I are not the only ones who are concerned about the self-serving side of personal financial management.


I have no qualms with anyone seeking and implementing a sensible approach to managing their money, building savings, getting out of debt and staying out of debt.

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