Friday, September 5, 2008

Dave Ramsey show

I now watch the Dave Ramsey show whenever I can. I also signed up as a member on the web site. Lot of good forums and good information there.

He talks about the Total Money MakeOver approach to paying off your debts and building emergency funds. I used to have so much saved up a long time ago. It's pathetic how fast your savings can dissappear when you have layoffs and also get stupid with your money.

Dave Ramsey has a seven step plan (Baby Steps - BS) for getting out of debt, staying out of debt and prospering:
BS1 - build $1,000 emergency fund
BS2 - Payoff ALL your debts - start with lowest balance first
BS3 - build 3 to 6 months emergency fund
BS4 - Invest 15% of your income
BS5 - College Funding
BS6 - Payoff your home early
BS7 - Build Wealth, Give

I completed BS1. Now I'm working on BS2 - should take me 4 years. Then on to BS3 to 7.

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