Comments on: Dave Ramsey’s Baby Steps To Financial Freedom

By: My Three Medals for Top Personal Finance Sites, or Your Money Back » B2B Bliss

Wed, 17 Feb 2010 13:24:04 +0000

[...] University seminars. Ramsey’s key trademarks include both his distinct spiritual focus and his Baby Steps to financial security. Like other personal finance sites, his site provides a wealth of basic [...]

By: Dave Ramsey’s Step #4: A Visual Guide to Saving 15% for Retirement in a Roth 401(k)

Thu, 24 Dec 2009 21:39:13 +0000

[...] M-Network is currently doing a series highlighting Dave Ramsey's 7 Baby Steps for getting out of debt and getting your life on the right track financially. You can read about [...]

By: Pinyo

Pinyo — Tue, 08 Sep 2009 19:29:53 +0000

Step #4 is an ongoing thing, so completed is a relative term. In any case, I assume your retirement savings is in some sort of an IRA account. If that’s the case, you can’t go back and withdraw your money prior to 59 1/2. If you do, you’ll have to pay the early withdrawal penalty and potentially taxes.

In any case, you should have an emergency fund. The way to accomplish this now is by saving a little bit of money each month and put it toward your emergency savings as opposed to retirement savings. For example, if you have extra $100 at the end of each month and you were putting that toward your retirement savings, you could instead put it toward emergency fund savings until you have 3-6 months worth of living expenses — after which you could resume your retirement savings.

By: Kathleen

Kathleen — Tue, 08 Sep 2009 19:21:49 +0000

I should have been more clear. I have completed Steps #1, 2 and 4. Should I go back and complete Step 3 before going on to Step #4 even though I’m age 50? Maybe take half of what I’m putting into retirement and apply it to the 3-6 months Savings?
Thanks

By: Pinyo

Pinyo — Tue, 08 Sep 2009 19:07:17 +0000

@Kathleen - Step #3 is a build on step #1 where you increase your emergency savings from $1,000 to 3-6 months worth of living expenses. If you don't have one yet, I highly recommend that you start putting some money toward your emergency fund. As pointed out in the article, a high interest savings account is the perfect place for stashing your emergency fund.

By: Kathleen

Kathleen — Tue, 08 Sep 2009 19:01:02 +0000

I’m following Dave Ramsey, and my financial house is getting into order, finally. I have a question for those of you who are more better at this than I am: I am working on Step 3, but I’ve already completed Step 4. I did them out of order. Should I now change things around, take the money I have that’s being directed into retirement and direct it instead into my 6 Months Savings step? I am 50 years old, just out of a 27 year marriage with zero savings besides my emergency fund. When I got my job two years ago I put the maximum allowable into all the retirement savings options I could because I am so far behind saving for the future. I am open to all advice. Thanks so much.

By: KZK

KZK — Thu, 03 Sep 2009 00:50:37 +0000

I just joined DebtGoal since I like how it gives me a visual of my goal. I’m already a fan of Dave. I wish they would make his steps a part of every high school education. It’s very hard for me to not beat myself up b/c of the mistakes I’ve made in the past.

I just wanted to add my 2 cents to the order of the steps: I returned to work in 2008 after being home w/my kids for 7 years & therin grew the debt. So I started off paying down the debt but lost track b/c it was so nice to have 2 incomes again (dumb, dumb). Fast forward to tax time, & we got slammed. $8K. So in order to prevent the same thing next year, hubby & I are maxing our pre-tax 401k/403b payroll deductions. I was thinking I should pay off the debt 1st, but there’s no way that would make sense for us.

I should point out that we don’t have a house (yet), another needed source of tax deductions………….!!

By: rob

rob — Sun, 30 Aug 2009 13:15:56 +0000

For all those that did not follow this plan at least they still have a reverse mortgage as an option.

By: The Power of Small:To Achieve Big Goals, Think Small | Financial Highway

The Power of Small:To Achieve Big Goals, Think Small | Financial Highway — Mon, 27 Jul 2009 16:24:35 +0000

[...] that helped many people succeed. The most popular example in personal finance sphere is probably Dave Ramsey’s Baby Steps. Knowing that it’s too overwhelming for people to go from “broke and in debt” to [...]

By: The Bible and Money. Proverbs 24:27: Do Things in the Right Order

The Bible and Money. Proverbs 24:27: Do Things in the Right Order — Fri, 24 Jul 2009 10:50:12 +0000

[...] logical reason for the order of each of these steps. The writer of Proverbs may not have known the Baby Steps as we know them today, but he understood the concept of doing things in the right order. I hope we [...]