FPU Week #1
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| Wed, 01-06-2010 - 12:45pm |
As a lot of you know, I am attending the FPU at my church. I have had a few requests to share the info each week sooooo I will TRY to make a post each week and touch on the highlights from that week's class.
Dave Ramsey uses a process of 7 Baby Steps to get out of debt and start saving. This week, we discussed Baby Step 1 and Baby Step 3.
Baby Step 1: AS SOON AS POSSIBLE, GET $1000 IN THE BANK!! (if your income is under $20,000 make this $500). This is your beginner emergency fund. This fund is for the UNEXPECTED events that do and will occur!
Baby Step 3: 3 TO 6 MONTHS OF EXPENSES IN SAVINGS. This money should be put into a money market account from a mutual find company. You are not to use this money for purchases. This emergency fund is your first savings priority and needs to be done QUICKLY!
Dave says that we need to STOP using credit. Save money (cash) for purchases! When you save $4000 for that furniture that you want, chances are that when you show up at the store with that much COLD HARD CASH, you will NOT pay the price they are asking and more times than not, when you pull out that much cash, you will rethink the purchase! Handing over cash is much more real, and difficult, than charging or financing!
Dave Ramsey's website (www.daveramsey.com) has a special right now and all of his books, CD's and DVD's are 50% off. I recommend checking it out! You can also go to hulu.com and search for his show and watch full-lenght shows for FREE!!
Next week: Baby Step 2: Pay off all debt except the house using the debt snowball.
Jenn
“For the love of money is a root of all kinds of evil” ~1 Timothy 6:10

Hi Jenn, thanks for sharing!
Kate
Thank you for sharing! :) My SO's cousin received this class as a pre-wedding gift from the grooms parents. I'd like to take it with my SO before we get married.
I love hulu! Free tv! :) I never thought to look up a show like Dave Ramseys though, I might have too! I'm not familiar with him, but I have noticed a lot of people on this board are big fans.
Thanks so much for posting.
Norma
"Patience is the best remedy for every trouble"- Plautus
Kate,
Yes, Hulu is a great site! I love that and fancast. Fancast is through Comcast. When we got rid of our DVR I started using those sites to watch my shows.
As far as saving the $1,000, Dave says that you do not move to the next step until the one before it is completed. So, technically you shouldn't start snowballing until you have that saved. We have started the efund and will finish funding it when our tax money comes in.
Jenn
“For the love of money is a root of all kinds of evil” ~1 Timothy 6:10
Jenn<?xml:namespace prefix = o ns = "urn:schemas-microsoft
I've taken the FPU class before and wanted to clarify one thing you had in your post with regards to this:
Baby Step 3: 3 TO 6 MONTHS OF EXPENSES IN SAVINGS. This money should be put into a money market account from a mutual find company. You are not to use this money for purchases. This emergency fund is your first savings priority and needs to be done QUICKLY!
This baby step is not a priority until AFTER all the debt is paid off using baby step 2. The baby emergency fund discussed in baby step 1 is the only savings that should be done prior to paying off debt using the debt snowball. Dave Ramsey stresses that each step is to be followed in their exact order.
You are correct, but if you noticed, we covered Steps 1 and 3 the first class.
Jenn<?xml:namespace prefix = o ns = "urn:schemas-microsoft