Speaking of Dave Ramsey……. we’ve been on the baby step plan since last January or so. The first couple of steps were reasonable for us – mini emergency fund and paying off all debt except the house. But now it is getting harder and beyond the simple fact of there is only so much money, it is psychologically harder.
My next step is to accumulate 3-6 months’ living expenses in that emergency fund. That’s a lot of money; and it’s slightly discouraging. But beyond that step, has anyone closed out their credit lines?
That is the one recommendation of Ramsey’s that I just had trouble agreeing with – like he wrote in the book, “I can use them responsibly”. But I’m beginning to suspect that maybe we’re not as responsible as I’d like to think…. Just wondering what other people’s thoughts and experiences are?
Maybe his baby step is too big for you right now. How about a premature baby step…1 week’s living expenses in the fund, then 2, etc. Maybe the goal is too big to see now, and a smaller goal on the way could work. Reward yourselves by having dessert at a good place (under $10?), or going to Barnes & Noble and looking at books, or taking a drive alone…whatever (cheap!) reward would do it for you.
Yep, Dave has a couple of books. The two that I know of are “sister” books – “Financial Peace” and “The Financial Peace Planner”. I read the first one and *loved* it. Luckily, I found the second one at the thrift store for 79 cents! They cover the same ideas and I don’t know if I’d say you “have” to get both, but I really do enjoy having the planner–it has some additional information and worksheet type stuff. Can’t imagine giving it away to the thrift!
Good idea on setting mini-goals!) for my 6 month living expense goal. I didn’t even think of that. Just saw it as this big goal that I had to keep chugging away at until I could say “done”.