Anyone here following Dave Ramsey's 'The Seven Baby Steps'?

 

Essentially, Dave Ramsey's 'The Seven Baby Steps' are an ordered process of being debt free and then buying things after saving. http://www.daveramsey.com/new/baby-steps/

We're on Baby Step 2 (BS2) - pay off all debt (and we got alot). We changed our vacation plans for August 2011 to involve more driving and less other stuff and we're going to be relying on our Nuvi and its POIs even more.

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Vince Nuvi 350

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100%

30% to mortgage
15% to IRA
15% to college fund
30% to IRS
...................
10% to pay rising gas price

should I use $1000 emergency fund to buy grocery?

nope

abin wrote:

30% to mortgage
15% to IRA
15% to college fund
30% to IRS
...................
10% to pay rising gas price

should I use $1000 emergency fund to buy grocery?

groceries are more important than IRA/College:-)
Great program helped me a lot.

--
BMW Nav V Montana 650 Zumo 660 Garmin 78S Garmin 76CSX

skip.. skip... skipping

mr_guns wrote:
abin wrote:

30% to mortgage
15% to IRA
15% to college fund
30% to IRS
...................
10% to pay rising gas price

should I use $1000 emergency fund to buy grocery?

groceries are more important than IRA/College:-)
Great program helped me a lot.

Yes.. noticed you skip step 04.

Moved Beyond..

Yes, I followed them, and then moved on towards becoming debt free. Except for a home mortgage with a few years to go, we're there...

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Garmin Nuvi 1690

Yes . . .

It is a good plan. We work on a cash and check basis. Cash works best, because when its gone, ITS GONE!!! Banks and credit card companies do nothing to help consumers, but make them swim in a pool of debt!

Yep

My wife and I (married 5 years this month) went through the program three years ago, and paid our house off last summer. We didn't have any other debt but it helped us discuss the monthly "budget" and reduce differences.

The biggest thing for us is deciding what is necessary or not. We now have two kids and being out of debt is definitely much easier.

It took us 6 months or so and several budgets to find one that worked for us. Don't give up, it is worth it.

Daniel

--
Garmin StreetPilot c580 & Nuvi 760 - Member 32160 - Traveling in Kansas

Yes

And we've reached the goal! We paid off the house mortgage last month. Now debt free!!

Woo Hoo!

avandyke wrote:

And we've reached the goal! We paid off the house mortgage last month. Now debt free!!

Mortgage burning party! Congrats!

--
nüvi 3790T | nüvi 775T | Those who make peaceful revolution impossible, will make violent revolution inevitable ~ JFK

There is nothing wrong with debt

Juggernaut wrote:
avandyke wrote:

And we've reached the goal! We paid off the house mortgage last month. Now debt free!!

Mortgage burning party! Congrats!

If you have self discipline, good job that you are reasonably sure wont disappear, an understanding of math, then debt is the best tool you have to accumulate wealth by using reasonable leverage. You must have a cash reserve of 6-12 months living expenses in the bank. The biggest mortgage you can afford for the house that meets your needs frees up lots of cash for LONG TERM investment.

Paying off a mortgage and living on cash is not the best way to accumulate wealth.

The number one rated financial planer by Barons magazine for the last two years Ric Edelman, is a far better source of financial planing that Dave Ramsey. www.ricedelman.com

--
"Ceterum autem censeo, Carthaginem esse delendam" “When governments fear the people, there is liberty. When the people fear the government, there is tyranny.”

There is nothing wrong with debt

I agree if you don't have some debt then your credit score will be low as they have no way to gauge how you pay bills. I seen this with my dad and my mother-in-law years ago. Also paying a finanical manager in some cases can cost more than it is worth.

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johnm405 660 & MSS&T

The end is the pay off

Daniel,

Yea, the end of the program is the pay off. All the money we are aggressively dumping towards paying down our debts will be ours at the end of the process. At that time, perhaps three years from now, our expenses will be bare bones, we won't have any debt, and we'll have thousands rolling in just to build wealth due to the spread between our expenses and our take home pay. Credit scores are good for going into debt, and debt no longer is in our plans. We won't need to leverage borrowed money because we will have enough of our own from income, replenished each and every month through our pay checks, to leverage through the additional discipline we're developing through the Baby Steps.

Vince

dkeane wrote:

My wife and I (married 5 years this month) went through the program three years ago, and paid our house off last summer. We didn't have any other debt but it helped us discuss the monthly "budget" and reduce differences.

The biggest thing for us is deciding what is necessary or not. We now have two kids and being out of debt is definitely much easier.

It took us 6 months or so and several budgets to find one that worked for us. Don't give up, it is worth it.

Daniel

--
Vince Nuvi 350

Credit Scores

There is a lot of incorrect information floating around about credit scores. I used to get a zero percent credit card and keep all of my debt on it. Every 10 - 12 months the introductory offer would expire and I'd transfer the debt to a new card with the same zero percent rate and cancel the old card. I did this for years. People told me it would ruin my credit rating.

I finally paid off all of the debt and the only remaining debt I had was my mortgage. Again, people told me that was "bad" for my credit score.

My wife wanted a new car and when I told the dealer I wanted to pay it off in 3 years I was offered zero percent financing and a $1500 discount "if" my credit panned out.

When they ran my credit score through 2 major reporting agencies, BOTH of them came back with a FICO score of 848.

Question: If my credit practices were so "bad" why did I have a credit score only 2 points below the perfect FICO score of 850?

There's entirely too much fallacious "information" out there regarding how credit scores are calculated.

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GPSMAP 76CSx - nüvi 760 - nüvi 200 - GPSMAP 78S

It Feels Goooooooodddddd!

I was in debt (deep debt) for years. I finally got my act (and the wife's) together and got them paid off. Down to about 4 1/2yrs on the mortgage. Time to up the 401K contribution and quit buying "stuff".

Quote from Forrest Gump: "there's only so much fortune a man really needs and the rest is just for showing off".

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OK.....so where the heck am I?

Congrats

avandyke wrote:

And we've reached the goal! We paid off the house mortgage last month. Now debt free!!

Nice! I hope to join you one day.

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BMW Nav V Montana 650 Zumo 660 Garmin 78S Garmin 76CSX