Baby Steppies
Phew!
I have completed Baby Step One! I am so proud of myself. A friend of mine asked me last night about the program I was going through and I tried to explain it to him while at The Eagle. Um. Wrong Idea since I wasn't very coherent. :) Anyway, here it is so you can read it...
Begin Quote
1. Make minimum payments on all your bills. Squeeze your budget until you've accumulated $1,000 cash. This is your beginner emergency fund.
You'll never make headway in your quest to get out of debt if you don't have at least a little something to fall back on. That "little something" is called an Emergency Fund, and that's what this first $1,000 is for (or $500, if you make less than $20,000 per year). Put everything else on hold. Make only minimum payments on all your debts; take on a second job if necessary; forego retirement-plan contributions (temporarily) if you can. Get your emergency fund together first. Get it together fast.
If you already have more than $1,000 in savings, and in anything other than a retirement account, withdraw everything except the $1,000. Use these proceeds for Baby Step #2, regardless of penalty (if the money were in CDs, for instance).
Once you have accumulated the $1,000 (or $500), you must keep it someplace where you cannot easily get at it. It must be available, but not easily available, and not easily spendable.
"Sometimes," Ramsey instructs, "you have to protect yourself from you."
End Quote
You can also look at the abridged version of the steps here...
http://www.mdmproofing.com/iym/babysteps.shtml
I have completed Baby Step One! I am so proud of myself. A friend of mine asked me last night about the program I was going through and I tried to explain it to him while at The Eagle. Um. Wrong Idea since I wasn't very coherent. :) Anyway, here it is so you can read it...
Begin Quote
1. Make minimum payments on all your bills. Squeeze your budget until you've accumulated $1,000 cash. This is your beginner emergency fund.
You'll never make headway in your quest to get out of debt if you don't have at least a little something to fall back on. That "little something" is called an Emergency Fund, and that's what this first $1,000 is for (or $500, if you make less than $20,000 per year). Put everything else on hold. Make only minimum payments on all your debts; take on a second job if necessary; forego retirement-plan contributions (temporarily) if you can. Get your emergency fund together first. Get it together fast.
If you already have more than $1,000 in savings, and in anything other than a retirement account, withdraw everything except the $1,000. Use these proceeds for Baby Step #2, regardless of penalty (if the money were in CDs, for instance).
Once you have accumulated the $1,000 (or $500), you must keep it someplace where you cannot easily get at it. It must be available, but not easily available, and not easily spendable.
"Sometimes," Ramsey instructs, "you have to protect yourself from you."
End Quote
You can also look at the abridged version of the steps here...
http://www.mdmproofing.com/iym/babysteps.shtml