- March 10, 2008 at 5:45 pm #256483
Work the Dave Ramsey 7 baby steps:
1. $1,000 In An Emergency Fund
2. Pay Off All Debt With The Debt Snowball
3. 3 To 6 Months Expenses In Savings
4. Invest 15% Of Income Into Roth IRAs And Pre-Tax Retirement Plans
5. College Funding
6. Pay Off Your Home Early
7. Build Wealth And Give!
You are well on your way. It looks like you should build up your
emergency fund to 6 months of expenses from the 3 you have. Then go to
investing more in your ROTHs. If you have have kids hit Step 5 and
invest in college funds. Then go to step 6 and throw as much money at
the mortgage as you can and pay the house off ASAP. After that have fun
saving (building wealth), giving, and playing.
Listening to Dave this afternoon on the radio he was speaking to someone
in a similar position as you. He said once the house is paid off take
whatever you were paying to the mortgage company and CC companies and
have it drafted from your checking account directly in to a money market
acct. He said that money will become a million dollars so fast you
won’t believe it!
Awesome job you have done so far!!! We are on step “2.5” 😉 We have
about 3 months living expenses set aside and we are working our debt
snowball. All CC and HELOCs should be gone on about 2 more years!!!!!
It sure feels good to be reaching and getting traction to a goal. 🙂
If you want to learn more about Dave visit his web site
[url=”https://www.daveramsey.com.”%5Dhttps://www.daveramsey.com.%5B/url%5D I get no compensation for you going or
anything. I just firmly believe in his plan because it is working. He
has some great tools/forms to use for budgeting etc.
Diane in GA
living on cash only and loving it!
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