Last night, our book group met to discuss this book by Dave Ramsey. The feedback from the women who actually read it was mostly really positive and enthusiastic in regards to the Money Makeover Plan. Dave Ramsey’s plan consists of 7 Baby Steps.
Without going into details, the 7 baby steps to attaining financial peace are:
- Save $1000 in an Emergency Fund
- Pay off Debt using Debt Snowball
- Grow Emergency Fund to cover 3 to 6 months’ of expenses
- Invest 15% of your income for retirement
- Begin college savings
- Pay off home early
- Grow wealth and give
You start at Baby Step 1 and don’t move to the next step until you have solidly completed the current step and so on.
HunnyPot and I are currently on Baby Step 4!! WAHOO! (Although, I guess it might be considered cheating since we have had an Emergency Fund for years and haven’t had debt for years. But still!) So nice to be closer to the “pay off home early” step.
BTW... When interest rates dropped a couple weeks ago, we refinanced our home to a 15-year fixed mortgage at 5.125%. FIFTEEN YEARS! Even if we only make the minimum payments, we will have the house paid off before our first child is 16. Of course, we’ll pay it off sooner than that, but hey! Isn’t that exciting!!!!
Oh, so anyway… I found a group of people online who are using the 7 Baby Steps. I wondered if any of you (who I know for realz) are following that plan. Let me know! If you aren’t one of those folks, what are your plans or strategies to be debt free and financially at ease?