Comments on: Dave Ramsey’s 7 Baby Steps

By: Patrick

Patrick — Fri, 25 Jul 2008 02:37:19 +0000

Money Energy,

I agree, tapping investments should be the last option.You can certainly start all improvements at once, and DR actually advocates this for the later steps in his program. Some of the steps are more important than others and should be accomplished first.

By: MoneyEnergy

MoneyEnergy — Thu, 24 Jul 2008 12:45:30 +0000

Interesting; I’m totally not familiar with Dave Ramsey though I’ve heard his name (maybe it’s because I’m in Canada and his media doesn’t circulate as much up here).

I would add with regard to the emergency fund that it is really important in order that you don’t have to tap into any INVESTMENTS that you may have compounding for you.

I’m not an advocate of paying off all debt first and proceeding to get one’s financial life “in order” in a linear fashion. I start all improvements all at once. But these steps are all still important, of course.

By: My single step personal finance challenge

My single step personal finance challenge — Wed, 16 Jul 2008 09:00:38 +0000

[...] is the next, or the next. Dave Ramsey captures the essence of “steps” in his famous baby-steps process for getting out of [...]

By: Patrick

Patrick — Mon, 14 Jul 2008 14:42:46 +0000

Jeff,

That’s a very good point. Paying off your mortgage early does tie up your money in equity, so it is a good idea to leave a large enough emergency fund so you won’t need to pull out a home equity loan or use other forms of credit.

By: Patrick

Patrick — Mon, 14 Jul 2008 14:42:39 +0000

Jeff,

That;s a very good point. Paying off your mortgage early does tie up your money in equity, so it is a good idea to leave a large enough emergency fund so you won’t need to pull out a home equity loan or use other forms of credit.

By: Jeff

Jeff — Fri, 11 Jul 2008 20:53:13 +0000

Paying off your mortgage is a 100% risk free guarantee return of investment. If you pay off a 5% mortgage, you are getting rate of return on money not owed. You will also pay less interest in the long run which will be better than any money market fund you can park your money in. The tax deduction is close to a scam. You pay 1,000.00 in interest to get a $250.00 tax break. If you have no mortgage, you can accomplish the same thing by donating to charity. That way, the bank isn’t getting your money.

By: Patrick

Patrick — Fri, 11 Jul 2008 01:08:37 +0000

Bonita,

Thank you for contacting me. I am not actually Dave Ramsey; my name is Patrick and I am a personal finance blogger. Basically, I am a regular guy who writes about my hobby - which is money and financial planning. Some friends and I wrote a series about Dave Ramsey, which is how you found my site.

Regarding your new budget, congratulations! Yes, it can be intimidating, but it is an important first step toward becoming debt free. Congratulations on your new beginning, and if you need assistance finding more information about how to become debt free, don’t hesitate to contact me. I will do the best I can to point you in the right direction.

By: Bonita

Bonita — Fri, 11 Jul 2008 00:07:04 +0000

Dear Dave,
My husband and I just started a budget. This is the most overwhelming thing that I think we have committed ourselves to do. Tell me, Dave, did you feel this way? Most of the problem is that we have never, in our 39 years of marriage, been out of debt. This is a new beginning for us. We have a long ways to go but we intend to stick with a budget and get out of debt. Thank you so much for your program and The Total Money Makeover. I can’t get enough I watch everyday to see if there is something to inspire me and it never fails. Thank you so much for helping us find a way to get debt free.

Bonita
Gulfport, MS

By: Denise

Denise — Sat, 05 Jul 2008 04:56:23 +0000

I like the debt snowball concept and having the expenses of a few months in advance also helps. Just came across this blog, a very interesting read.

By: Patrick

Patrick — Sat, 05 Jul 2008 02:26:01 +0000

Jim,

I can’t wait to get my house paid off either! There are two schools of thought on the topic: pay it off ASAP, or stretch it out as long as possible and invest for higher returns elsewhere. Right now I am of the first school of thought because having no mortgage gives me a different kind of freedom. But ask me again in a few years and I might change my mind.