"I see debt people"

Had to post about Dave Ramsey. I started to listening to him on XM Satellite Radio - Channel 165 a few months ago. I have listened to many "finance" people - Suze Orman, Jean Chatzky, etc. By far, Dave Ramsey and his plan is the best. (In my humble, but most accurate opinion)

First of all, Dave has been there (has lost everything, pursued by creditors, sued, etc.) AND he treats people with empathy and compassion. He ministers just as much as he gives sound advice.

To me, his plan is simple and it makes sense. His Baby Steps give you an instant plan and priority regarding your money.

Baby Steps are as follows:

1. $1,000.00 in an "Emergency Fund" ($500 if income under 20K/yr.)
2. Pay-off all debt utilizing the "Debt Snowball" - except the house (making all future purchases with cash)
3. 3-6 months of expenses in savings
4. Invest 15% of household income into Roth IRAs and pre-tax retirement savings.
5. College funding
6. Pay-off home early
7. Build Wealth (Mutual Funds/Real Estate)

I have never approached debt quite like this and so far it is really working for me. I have always been a "budgeter", but I now feel like I understand what my goals should be.

I strongly encourage any reader to go to Dave's website and purchase some books and learn what he has to say. (Just click on his name above).

Dave's plan is not just about paying off debt - it's about living debt free. Paying cash for every single thing...car, house, etc. He has done that for the past 10 years and I feel it can be done by anyone.

Life is too short to be living paycheck to paycheck OR to be in a situation where you can't take off work to have a baby or be sick. Most people live this way.........I chose not to!

Dave's motto:

Live like no one else so that later you can live like no one else.

Sounds good to me!

AKM