OK ladies...question for ya.
I've got Dave Ramsey's book (free, the library had it!) and I ordered his envelope system which should be arriving in the mail soon....but here's my question. I'm trying to start the first baby step... BUT....

It says all of your payments have to be current in order to start. Well, we're behind in the car payments by one month. Does that mean we can't start yet?

(To explain, I'm not a total failure, my son was born 10 weeks early and I was out of work much sooner than planned. We went from 2 incomes to 1 with really no warning or preparation...so to me, being only this far behind isn't all that bad...)

I got his website access free for 30 days with my order of the envelope system and am wondering if I'm going to even be able to begin if I have yet to catch those up!!??! URGH.

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I could be wrong, but I thought that you needed to save the $1K first, since emergencies WILL happen, and that will put you further behind potentially. And then get caught up with your monthly obligations.

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Make someone's heart smile today.

Can dark get darker?

I only stashed $100 in there so far...

I want it to be workin' already...I've got that immediate satisfaction thing. I KNOW we can do this... I just have to remind myself that I only started 3 days ago!!!!

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Hey, $100 in three days is nothing to sneeze at! Think of how easily you could spend it! You are doing great!

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Make someone's heart smile today.

Can dark get darker?

Thanks, I appreciate your support!

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If you have current bills that are late, but not yet in discharge or collections, then yes, those get current first.

So if your mortage and car payments are late, and you want to keep those assets then you need to first get those current. Take care of the 4 walls around you first.

Then you move to the baby emergency fund. Their is no reasonable reason why you would have money in savings if you are in danger of being repossed or foreclosed on.

For a refresher here are the steps:

Dave Ramsey - Baby Steps

0 -- Get current on bills
1 -- $1,000 to start an Emergency Fund
2 -- Pay off all debt using the Debt Snowball
3 -- Three to six months of expenses in savings
3.5 -- Save for downpayment if you do not own a house but want to
4 -- Invest 15 percent of household income into Roth IRAs and pre-tax retirement
5 -- College funding for children
6 -- Pay off home early
7 -- Build wealth and give! --- Invest in mutual funds and real estate


There is a forumn board online just for folks that follow Dave Ramsey. You can check it out at Living Like No One Else - There's hope in your financial life! (Living Like No One Else) The board is not assocaited with Dave Ramsey, but that is all that is discussed.

Good luck to you. It's do-able, I was once WAY behind in bills, not a cent to my name and now I have my EF and will be debt free in August 2008.

So what book are we talking about? I know that My hubby and I have finally seen the light about our debt. I know that we aren't in as deep as most couples married only a couple years but we don't want to keep getting deeper in the hole either. We have 1 baby who will be 1 in Feb. and another due in July. We figure that if we don't get our debt cleared up now we never will.

What book are you talking about so I can see if my library has it?

Total Money Makeover...
You can also access some info off of his website. I just googled Dave Ramsey....

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Does anyone else find it amusing that he wants people to pay to find out how to get out of debt?

Maybe that is how HE got to bes debt free....... hahahaaha J/K

Yeah... i agree with you. It's ironic...isn't it?!

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