Dave Ramsey

Build Wealth and Give

Build wealth and give

Baby Step 7: Build wealth and give! After completing the first 6 baby steps, you will now be debt-free, with a fully funded emergency fund, you are saving 15% of your income for retirement and have started an Education Savings Plan for your children, and you have a paid for house! Well done, you are killing it! From the Dave Ramsey website: It’s time to build wealth and give like never before. Leave an inheritance for future generations, and bless others now with your excess. It’s really the only…

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Pay off your house early

Pay Off Your House Early

Baby Step 6: Pay Off Your House Early After completing the first 5 baby steps, you will now be debt-free except for your home loan {if you have one} with a fully funded emergency fund, you are saving 15% of your income for retirement and have started an Education Savings Plan for your children. You are now ready to throw any extra money at your home loan and pay off your house early! As you attack this last debt, you will gain momentum much like you did back…

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Education Savings Plan

Step 5: Education Savings Plan for your children After completing the first 4 baby steps, you will now be debt-free except for your home loan {if you have one} with a fully funded emergency fund, and you are saving 15% of your income for retirement. Next up is saving for your children’s education. {We don’t have any kids yet, but we plan to be ready to start an education savings plan for them when they are born.} How much should we save for education?…

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Saving for Your Retirement

Baby Step 4: Saving for Your Retirement After completing the first 3 baby steps, you will now be debt-free except for your home loan {if you have one} with a fully funded emergency fund. Now it is time to get serious about building wealth, and the first thing to do is to start saving towards your retirement: This means you need to invest 15% of household income into tax-advantaged retirement accounts. While you are at Steps 4, 5 & 6,…

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The Full Emergency Fund

Baby Step 3: The Full Emergency Fund At this point you will be debt-free and have a small starter emergency fund. 3 to 6 months of expenses in savings Now to really blow your mind {and life-long misconceptions about personal finance}, Dave Ramsey suggests that we have a fully funded emergency fund of 3 to 6 months of expenses in savings. Before you start building investments, first save up this nest egg to protect you and your family from unplanned debt…

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The Debt Snowball

Baby Step 2: The Debt Snowball After completing Step 1 {The Starter Emergency Fund}, it is time to get gazelle intense to pay off all your unsecured debts, including your car but not your home loan {if you have one}. As a child of Sunny South Africa I have no idea what a snow ball looks like in person – I have heard that they can accumulate more snow and grow in size as they roll faster and faster downhill. This…

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The Total Money Makeover

ARE YOU DROWNING IN DEBT? >>>START HERE<<< This is the book that will change your life. {It has already changed ours}. It is packed full of practical real-life advice that will help you to finally bring your finances in order. Dave Ramsey has a direct and sometimes harsh style and approach towards debt, finances and the mistakes most of us make. His advice is solid and based on a biblical foundation {although this book is not aimed at Christians only}. He has…

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The Four Walls Principle

The Four Walls: Food, Shelter and Utilities, Transportation and Clothing. This is another valuable Dave Ramsey nugget. Have you ever fallen into the cycle of paying your credit card and then buying basics such as food with that same credit card? It’s a tough cycle to break and a recipe for disaster.  It’s a fine balance, that only needs one proper financial emergency or a skipped payment or two before you end up stuck.  We have personally spent many weeks without food…

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Gazelle Intensity

“Gazelle Intensity” basically means: “When it comes to debt, run for your life!” Dave Ramsey coined the term after reading Proverbs 6:4–5, which says, “Give no sleep to your eyes, nor slumber to your eyelids. Deliver yourself like a gazelle from the hand of the hunter, and like a bird from the hand of the fowler.” Read the full story here. {Print from ETSY}

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Discovering Dave Ramsey

We fell around  in an ever-deepening hole of debt, so clueless, for the first six years of our marriage – until we discovered Dave Ramsey’s plan at the end of 2012. The Seven Baby Steps $1,000 In an Emergency Fund {about R5 000 – R10 000 in RSA} Pay Off All Debt with The Debt Snowball 3 to 6 Months Expenses in Savings Invest 15% of your income into Retirement Plans College / Education Funding Pay Off Your Home Early Build…

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