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  1. 04-11-2011, 12:23 PM #1
    ksgrlnaz
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    Default Dave Ramsey: Baby Step # 1

    I haven't read the book or taken the class yet, so this may be addressed somewhere else too . . .

    If I have $2000 this month that I can put towards the "project", what are the thoughts on having a baby emergency fund of $1000 and putting the extra $1000 towards snowballing versus having a $2000 baby emergency fund?

    I can imagine there are arguements for both sides . . . what have you done and what would Dave Ramsey say to do (and reasons, if any, for his position)?

    Thanks!
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  2. 04-11-2011, 02:31 PM #2
    Ceashels
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    DR suggests a BEF of $1000. But with today's economy, the rising costs of things, and your personal comfort level. You need to decide what is best for your situation. Many people here have had larger BEF's and some smaller and though it isn't always the "by the book" method of DR, just about all of the DR fans have modified and tailored the plan to fit their needs.

    Hope that helps at least a little. LOL
    The Free Spirit Saver who walks the path with Greebo.

    Onboard with a modified Dave Ramsey Plan
    Budget: "Every month! On paper, on purpose!"


    Gardening somewhere between Zone 6b and 7a.
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  3. 04-11-2011, 02:50 PM #3
    PrairieGirl
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    I agree with Ceashels.

    Right now, I have a BEF of $500 because its all I can afford at the moment. That will get built up over time to be much bigger.

    Go with what you're comfortable with. From you siggy though, I'd take that money and just pay off the CCs and then put the rest in savings.
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  4. 04-11-2011, 03:01 PM #4
    Greebo
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    Dave would tell you to limit your BEF to $1,000 in order to maintain a sense of urgency. The goal of TMMO is to change behaviors and get you fired up to get out of debt AS FAST AS POSSIBLE - and one thing that helps you stay motivated is that sense of fear about what COULD happen with only $1,000 in the bank.
    If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.

    Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"

    Greebo    (Nerd Spender): Loving and extremely patiently tolerated husband of ceashels.
     WARNING: Y Chromosome behind the keyboard. Adjust your listening filters appropriately!

    Three     Two mortgages, two one no car loans, one no credit cards, and a partridge in pear tree!
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  5. 04-11-2011, 03:29 PM #5
    ksgrlnaz
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    I guess that makes sense . . . I most certainly need some "urgency" .

    My signature may be a bit deceiving, I have only listed the two debts I recently paid and the next one I am working on - - true personal debt is much higher (student loans, an attorney's bill from a custody dispute, a few medical bills, etc.) . . . still working on getting it all down on paper and accepting where I am now so I can continue to move forward. Honestly, it will probably take me a week or so to be able to "see" the real number and accept it . . .

    Part of the process I guess.
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