<< Back to all Blogs
Login or Create your own free blog
Home > My favorite financial coach

My favorite financial coach

January 2nd, 2016 at 10:13 pm

I admit it, I'm a Dave Ramsey fan. I listen to his radio show whenever I get a chance (thank you iHeartRadio) and love his common sense advice, especially the 7 Baby Steps. For those of you who are not familiar with the Baby Steps, here they are.

Step 1: Save $1000 in a starter emergency fund. (I'd personally go with one month's income.)

Step 2: Pay off all your debts except the house from smallest balance to largest.

Step 3: Finish your emergency fund to at least 3 to 6 months of expenses. (I'd personally go with one year's income.)

Step 4: Put 15% of your pretax income into retirement.

Step 5: Start saving for your kids' college (or yours if you plan on going back to school).

Step 6: Pay off the mortgage as quick as you can.

Step 7: Build wealth and give to charity.

I am happy to say I am currently on Step 4. The interesting thing about this is once I finish step 4 I will automatically go to Step 7. Why? For one I have no kids nor a desire to go back to school. Second, I currently am renting where I live and hope to save up enough money to buy a place with cash. (Going through that foreclosure scared the living daylights out of me so if I can avoid a mortgage I will.) And no, I don't have a large income, in fact I would definitely be considered low income. The key for me is that I do the best that I can to live on less than I make (being without an income for 5 years also scared the living daylights out of me and finally knocked some financial sense into my head). Having money in the bank gives me so much peace of mind that words can't describe it.

I read a comment on another blog that I have a feeling will stick with me: "Don't spend all your money in one go, but save some for another time." It's so simple yet it's so obvious and that's why I love it.

9 Responses to “My favorite financial coach”

  1. VS_ozgirl Says:

    Good work on doing so well! I am currently at Step 2, however this is due to be paid off September this year.

  2. Ralph Says:

    Glad things are going well for you! Keep it up!

  3. Joan.of.the.Arch Says:

    Hi, welcome, Jessica. About that emergency fund. It was with the recession and big unemployment that my husband and I decided to really up the emergency fund. It gives me peace of mind to have done so.

  4. scfr Says:

    Dave Ramsey has helped a lot of people, and I'm glad to read how much you have been helped by his advice. Sometimes people forget that personal finance is PERSONAL, so I especially like how you have personalized DR's advice for what feels right for you.

  5. pjmama Says:

    I find his methods really effective as well. But I'm more on step 1... haha.

  6. rob62521 Says:

    Keep up the good work. Whether is is Dave Ramsey or Suze Orman, both have common sense advice. What I have noticed is the folks who complain about not having money are those who fail to plan and follow through. Glad you aren't among them.

  7. FrugalTexan75 Says:

    Dave Ramsey has a good plan for getting out of debt. An EF is very important too!

  8. Jessica Rupe Says:

    Joan, you are so right. Having an emergency fund really does give a person true peace of mind. When my hours at work got cut this past summer I was glad that I had put money into savings every payday. Now that I am getting more hours again I am slowly building my emergency fund back up.

    Pjmama, at least you've made a start on building your emergency fund. Keep at it! The more money you can put in there the more your peace of mind will grow.

    VS_ozgirl, well done! Come September it's on to step 3! You can do it, I have faith in you.

    Rob, I used to be like that and I still am somewhat. I tend to be a huge scatterbrain at times. However things are slowly turning around.

  9. Chatterbox Says:

    Im not an avid follower of Dave Ramsay but I am a big believer in living below your means, saving for a rainy day and not keeping up with the Jones'! If you can stick to all 3, i think it puts you in good shape to start to build up future financial security

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
Will not be published.

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]