Foundations of Finance

I was talking to my good friend Danny today and we got on the topic of finances. I don’t think I’ve met another individual as financially prepared and goal oriented as Danny. The man has it all planned out! Sent me a spread sheet and everything of his budget, talked about his financial strategy, etc. He’s a very sucessful guy-has a beautiful family, is involved in his community, and has his financial future planned. Good job Danny!

Anyway, he told me about a little something called the Dave Ramsey Plan. I have to admit, I’d never heard of it before, but after reading his basic steps, am already inclined to stepping on the Dave Ramsey bandwagon-if there is one…i’m assuming there is-and perfecting my “yee-haw”ing (that means i’ll be on the wagon for life. Everyone on a wagon has to know how to yell “yee-haw” properly). For all of you Dave Ramsey virgins out there, I wanted to give you a very brief synopsis of his “plan”. This is taken from Dave’s website:

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The 7 Baby Steps Begin Your Journey to Financial Peace

Get out of debt the same way you learned to walk, one step at a time.

1. $1,000 to start an Emergency Fund
2. Pay off all debt using the Debt Snowball
3. 3 to 6 month of expenses in savings
4. Invest 15% 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!
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And that’s IT! I have to admit, number 7 on that list is looking very good to me, but remember-baby steps! Just like on What About Bob. “Baby steps around the room…baby step to four o’clock…”. Stuff like that-baby steps! I honestly love this guy now. I will be writing a lot more about his ideas and techniques.

Again, thank you Danny for the introduction. I hope this helps all of you wanting to renew your financial goals, get out of debt, and baby step your way to the “build wealth” stage!