Comments on: Should You Follow Dave Ramsey’s Baby Steps?

By: Ryan

Ryan — Wed, 20 May 2009 18:43:43 +0000

Rosa: Thanks for your comment. You’re right, there is a big difference between types of bills, but it is easier to just say bills than list them all out each time. And I love the idea of being 100% financially free. To me, not having any debt is a big part of that!

By: Rosa

Rosa — Tue, 19 May 2009 13:48:47 +0000

The earlier you can get out of debt, the easier it is to stay out of debt. Those habits of always having “bills” are hard to unlearn after 10, 20, 30 years. (I love that phrase, “bills” – like credit card bills & student loans and electricity are all the same kind of thing) .

And totally aside from any expectations or hopes you may have of being rich someday, debt freedom is *freedom*. You might want to travel, to be a stay at home parent, to help your siblings or parents, to work in a nonprofit or for a church…the less debts you have, the more freedom you have to choose what to do with your life.

By: DDFD at DivorcedDadFrugalDad

DDFD at DivorcedDadFrugalDad — Tue, 12 May 2009 01:08:54 +0000

The key is what you said at the end of the post– this won’t happen overnight!

Any of us could put together this list– the hard part is the discipline and patience to really make it happen.

By: Kacie

Kacie — Mon, 11 May 2009 18:24:24 +0000

I’d like to invite the ‘confused youngster’ to add up how much he/she is spending per month on student loans and car payments. Is it at least $500? Let’s say it’s $500.

Once those bills are paid off, you’ll have an extra $500 per month to do what you want. At that rate, it won’t take all that long to build up your emergency fund and then once that’s in place, you can start contributing 15% toward retirement.

If you try to do all the steps at once, you’ll never get anywhere. That’s why these are baby STEPS. You have to complete a step before moving on to the next one.

Get your $1,000 together fast. Then, get to work on your debt. Pay it off as fast as you can. You’ll free up a ton of your income and you’ll really start to make progress.

Trust me. Next month, I’ll turn 24. I just paid off my car and now I’m 100% debt-free. My husband and I (on a modest income, for sure) are now going to have anywhere from $1,200 – $1,500 or more per MONTH to save for a house.

By: Michael @ The Life Insurance Insider

Michael @ The Life Insurance Insider — Mon, 11 May 2009 17:01:12 +0000

I think “ConfusedYoungster” makes Ramsey’s point perfectly. You can’t save and give if you have student loans and car notes. He’s right. It’s impossible. That’s why you have to get rid of all that stuff and never do it again.

By: Ryan

Ryan — Mon, 11 May 2009 13:38:31 +0000

Maybe I should have quoted “Pirates of the Caribbean” regarding the Pirate Code…

By: Miranda

Miranda — Mon, 11 May 2009 13:25:54 +0000

You make a great point that these steps are guidelines. There is flexibility to adapt to your specific circumstances. What I like about the baby steps is that they build on each other. You start with one, accomplish that goal, and then move on to the next. Each step provides a foundation for the following step. And, of course, since it is personal finance, you can adjust some of the steps to fit your situation.