Dave Ramsey Baby Step 3b

Save 3 to 6 months of expenses in a fully funded emergency fund.

Dave ramsey baby step 3b. After two years of intensely listening to dave ramsey and taking his courses this is what i have learned about bs3b. Your baby emergency fund. Baby step 3 is where you finish the emergency fund and have 3 6 months of expenses saved up. Dave ramsey baby step 3b.

Remember this stash of money is not an investment. I didn t feel comfortable with having only 1k saved. Invest 15 of your household income in retirement. But before you proceed to baby step 4 why not use that chunk of cash to build your down payment.

Dave goes on to say keep these savings in a money market account. Let s get the numbers out of the way first. Baby step 1 the very first thing you do after you get current and have your written budget your first goal is you squeeze every dollar out of your budget and your life until you have 1 000 saved as your beginner emergency fund. Pay off all debt except a first mortgage using the debt snowball.

Once you ve done that then save for the down payment on the house. So did baby step. No matter your life stage paying off your consumer debt puts you knee deep in the most frustrating of the baby steps baby step 2 where you pay off your debt using the debt snowball method. Save for your children s college fund.

Baby step 3b question. Baby step 2 involves paying off your debts smallest to largest using the debt snowball. Baby step 1 is 1 000 in the bank. Maybe you can relate to lily s story.

Dave calls this baby step 3b. Do a modified set of baby steps as we are a family of 5. Pay off your home early. Save 1000 in a starter emergency fund.

There are really no hard and fast rules here. Optional save a down payment. Maybe you re a recent college graduate a single parent or quickly approaching retirement. Answer we call it baby step 3 b.

Save 3 6 months of expenses in a fully funded emergency fund. Question meg on twitter wants to know where she can fit purchasing a house into the baby steps. Pay off all debt except the house using the debt snowball. It s okay to put retirement savings on hold for a short period of time to save for a home.

Save 1 000 for your starter emergency fund. If you don t have a house yet you can delay starting baby steps 4 5 and 6 and save up for a down payment. If you don t own a home save for a. We have never bought a house and it s something we really look forward to.