Dave Ramsey

Is Dave Ramsey Wrong? With No Loans and No Credit Cards, I Still Have a Credit Score.

When Janice and I became gazelle intense about getting out of debt, we did so hook, line and sinker. Once we paid our credit cards off, we either quit using them or cancelled them. Over the years, I have sporadically checked my credit report, but had never become curious enough to obtain my official credit […]

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What Really Qualifies as an Emergency?

If you follow Dave Ramsey, you are aware that your very first priority is to establish a $1,000 emergency fund for those unexpected life events.   The point of this “Baby Step One” emergency fund is to provide you a buffer or fall back while you’re paying down debt with “gazelle intensity”.

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Biblical and Financial Wisdom: Doing Things in the Right Order

Proverbs 24:27 “First plant your fields; then build your barn.” What does this verse mean? When I first read this verse, I didn’t get it. Understand that I am not a farmer, so I didn’t see what difference it would make whether one planted first or built his barn first.  If fact, it seemed more […]

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Beware of Percentage Budgets

You have seen those percentage budget plans which deftly tell you what percentage of your budget you should spend on which categories.  Yes, they are a good guide, but you need to beware: giving too much credence to those percentages could get you in trouble.

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Do We Spend More With Credit Cards? A Study Proves … Maybe

Do people really spend more with credit cards than with cash? This topic has been beaten until blue and there seems to be no documented study which proves one way or another. Yes, many of us have heard of the Dunn and Bradstreet study (oft quoted by Dave Ramsey) that indicates people spend 12-18% more […]

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How to Get Personal Finance Taught in a Public High School

In contemplating whether to write this post, I weighed the negative aspect of “tooting my own horn” with the positive aspect of helping get more high schoolers some solid financial training. One compelling factor in my decision is that Austin Morgan at Foreigner’s Finances had already shared this info in our recent podcast interview. Soooo…the […]

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With Apologies to Dave Ramsey, One Size Doesn’t Always Fit All

photo credit: rejon Before you jump to the wrong conclusion, let me state that the purpose of this post is not to trash Dave Ramsey. Just check my “About” page to read how Dave, his teachings and his books have turned my life around. You will also read that I am a Dave Ramsey certified […]

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Dave Ramsey’s Baby Step 7: Build Wealth and Give

photo credit: db*photography Congratulations! When you reach Baby Step 7 you have come a long way. All of your debt is gone, including your house mortgage. You have a great emergency fund, your children’s college is well funded and the positive cash flow you used to accomplish the previous steps is still flowing. Only 2% […]

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Dave Ramsey’s Baby Step 6: Pay Off the House Early

photo credit: rutlo Dave cautions people who reach this step that they are in grave danger: danger of settling for “good enough” when, if they keep the course, they will experience “best”. People need to remember that the financial plan is like a marathon; slow and steady wins the race. However, the 18 mile mark […]

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Dave Ramsey’s Baby Step 5: College Funding

photo credit: Will Hale Just getting to Step 5 indicates that you have been doing some great things with your finances. You are debt free, except for your house and you have a fully funded emergency fund. You are also investing 15% of your income toward retirement. Congratulations! Now, and not until now, is the […]

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Dave Ramsey’s Baby Step 4: Invest 15% for Retirement

Congratulations! You have done lots of hard work and have demonstrated great discipline in the process of Dave Ramsey’s Baby Steps. First, you saved $1,000 in a small emergency fund (Step 1), which gave you a buffer against life while you strategically paid off all debt except your house (Step 2) using the debt snowball. […]

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Dave Ramsey’s Baby Step 3: Fully Funded Emergency Fund

photo credit: eikosi Peter and Teresa (not real names) were doing well. Peter had a good paying job with great security. Teresa brought in extra money through being self employed. Life was good until, with no warning, Peter had a heart attack necessitating him to miss six months of work. His sick leave covered his […]

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What is Dave Ramsey Saying About Today’s Economy?

No, Dave Ramsey did not write a guest post for my blog.  But he did give me permission to re-run his columns.  I hope this one will be encouraging and challenging as you read what Dave has to say about today’s economy…a year into the recession. Important Update from Dave About the Economy In light […]

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Dave Ramsey’s Baby Step 2: The Debt Snowball

photo credit: OakleyOriginals In order to better understand Dave Ramsey’s passionate hatred of debt, allow me to quote him, “ Years ago, my wife, Sharon, and I went broke. We lost everything due to my stupidity in handling money, or not handling it, as the case may be. Hitting bottom and hitting it hard was […]

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Dave Ramsey’s Baby Step 1: Baby Emergency Fund

photo credit: hill.josh Jim and Doris were highly motivated about getting out of debt. They listed all of their debts, worked out a budget and agreed that they could pay an extra $300 every month above the minimum payments. During the first month, their air conditioner compressor quit working. A month later, Jim’s fuel pump […]

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Dave Ramsey’s Baby Steps: Introduction

photo credit: dhaneshr I realize that many have written about Dave Ramsey’s Baby Steps. Of course Dave himself wrote “The Total Money Makeover”, a New York Times best seller, which devotes an entire chapter to each step. So what can I add to this topic? Good question. I have five goals: As a Dave Ramsey […]

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