Dave Ramsey and the Emergency Fund

We're still listening to the Dave Ramsey tapes. They are definately worth the while and probably the price, but I inter-library loaned them!

His first step is create the "emergency fund". $1000 to start with and you are supposed to be intense with this to try to get it in the first month. We figured we would get this when the taxes came, however we have been intense in our efforts and have just saved $450. $200 from Hubby's paycheck, $200 from my business and $50 from Hubby putting a cabinet together for someone! We have not yet had to sell anything off to get here, but I have a set of McGuffy Readers that I could sell, and lots of cloth diapers that would help.

Something that Dave was very good at explaining was what an emergency fund is and is not. I love how he sounds when he says in a really deep voice, "Christmas is not an emergency, it comes at the same time every year!". The last 2 years we have had an emergency fund, but have always spent it when we wanted, or thought we needed something; including Christmas presents.

We also never put any effort into paying it back when something was used out of it. The point according to Dave is to put everything else on hold (purchases and extra debt payments) till the emergency fund is put back.

Here's to changing our thinking for the better! To no longer being servants to our lenders! Once we have the emergency fund funded I will post our debts and update as we pay them off.

Blessings,
Stella