Baby Stepping….the Dave Ramsey Way
August 10, 2007 – 11:20 amWelcome to Working For Financial Freedom. If this is your first visit please read about this blog. You can keep updated by subscribing by email or to my RSS feed. Thanks for visiting!
Here are the Baby Steps that Dave Ramsey suggests you follow to get out of debt. If you don’t know much about Dave Ramsey and haven’t read his book, The Total Money Makeover, hopefully this gives you an idea of what his advice is.
We are currently on #2. But hope to have that done by April 1st, 2008 (right about the time we move)
1. $1,000 to start an Emergency Fund
2. Pay off all debt using the Debt Snowball
3. Three to six 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!
Invest in mutual funds and real estate.
What step are you on? Since starting Dave Ramsey’s program how long did it take you to get to this step?
6 Responses to “Baby Stepping….the Dave Ramsey Way”
Hello! My husband and I are getting out of debt Dave Ramsey style as well. We’ve recently finished off baby step one, and just paid off our first credit card! Great blog and good luck to you =)
By Beansprout on Aug 12, 2007
Thank-you!
Great job! We hope to have our card paid off next month.
By Mom of 3 on Aug 15, 2007
I’m on step one, though I’m not strictly following Ramsey. OTOH, everyone I’ve read says get your emergency cash together first, so that’s what I’m doing.
By Shannon on Aug 23, 2007
Shannon,
I agree.
We got our $1000 emergency fund together first. I’m glad we did, we have had 2 small vehicle repairs pop up that needed to be taken care of right away.
It might seem like it’s taking forever to get the emergency fund together, but it’s so worth it!
By Momof3 on Aug 23, 2007
We’re on Baby Step #3! This is the hardest! Once the debt strangle-hold was released, we wanted some breathing room! But we’re going ahead with what DR calls “gazelle-like intensity!” Our goal date to complete Baby Step #3 was 7/09, but thanks to a surprise promotion and our decision to bank the raise, we’ll fund a year early!
By SAHMmy Says on Aug 28, 2007
That’s AWESOME! Does that mean you’ll be on baby step 4 or 5 pretty soon?
By Momof3 on Aug 30, 2007