Working The Dave Ramsey Plan Baby Step Six

Dave Ramsey says…

Lots of people have asked me, “What’s it like to do the Dave Ramsey plan?”  Our family is in the the third year since graduating  from Financial Peace University. In those three years we have made it step by step out of the hole. It’s been tough and we have sacrificed a lot to get where we are just to gain some peace of mind. Just to refresh your memory or take you through the plan here it is in a nut shell.

$1,000 to start an Emergency Fund
Pay off all debt using the Debt Snowball
3 to 6 months of expenses in savings
Invest 15% of household income into Roth IRAs and pre-tax retirement
College funding for children
Pay off home early
Build wealth and give!
Invest in mutual funds and real estate

Working The Dave Ramsey Plan Baby Step Six by @PamelaMKramer

We are on step 6 and this is probably the hardest one for us. The only step that we have not done is “sell so much stuff the kids thing they’re next!” We have been able to make it this far without doing that but now, it’s time! We have started looking around the house to see we what we can sell. I have a few semi-precious stones that I don’t really need, along with a few rings and necklaces.

Yes, I rather pay off our house than own gold. It’s just not more important than our sanity. My husband has a few collections in a storage that he could part with too. We may begin to take some drastic measures. My husbands new job with less pay has really got us in a major bind. We could get rid of the cleaning service, the lawn service, Netflix, cable, YMCA, all the extra kid activities and maybe more. It’s better for us to take one year and completely focus on getting rid of the house payment. Then we could be free in one year rather than stretch it out for another 5 years.

It’s so close that we can both see it. We need to be like Nike and Just Do It! I’ll keep you posted. We have paid off a six figure debt with interest. Soon we will be free and we will never return to that nasty place again!  I can almost taste the peace of mind. For me, I’m going to try and find whatever free lance work that I can. I would be more than happy to wait tables at this point. I just want it to end. What about you? How is your financial future looking? Are you a Dave Ramsey fan?

Baby Step 7 Update Here

  • Lindsay Chung

    WOW! I have read Dave Ramsey’s book and I can totally see the plan and how it works…I just don’t know how to start. I can’t figure out where to get that $1,000 from and the debt snowball seems nearly impossible. I know these are all excuses, but I just can’t see how to do it!

    • Pamela M. Kramer

      Well Lindsay, that is where the “sell so much stuff the kids think they are next” comes from. It can be done. You just have to look at where your money is going. We stopped eating out for a while and had a garage sale and just cut out some things until we scraped up the first $1,000.

    • PamelaMKramer

      Where are you now Lindsay?

  • WeeMasonMan’s Mom

    I’m a HUGE Dave Ramsey Fan! I was on step 3 and unfortunately I’m back on Step 2, but the end of that is in sight. You guys are doing a GREAT job to be on Step 6! I hope to be there in the next few years!

    • PamelaMKramer

      Where are you now?

      • WeeMasonMan’s Mom

        Still plugging away on Step 2

        • PamelaMKramer

          Yes, that step 2 can be a BEAR! I just wanted to check in with you and see how things are going. Let me know if you have any questions!

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