Today's lesson was titled "Super Saving: Common Sense for Your Dollars and Cents". Dave introduced us to the 7 baby steps and then talked about baby step #1 and 3 in detail.
Dave Ramsey taught us today that saving must become a priority and we need to pay ourselves first. I know this is something I have struggled with in the past. One of the ways I have found I have been able to do this is to take it right out of our paychecks or by setting withdraws to happen automatically from my checking account so that I cannot spend or give the money away. Dave covered three different reasons for savings. They are to save for emergencies, to save for purchases and to build wealth.
- Save $1,000 into a beginner emergency fund.
- Pay off all debt (except the house) using the debt snowball.
- Put 3-6 months of expenses into savings.
- Invest 15% of your household income into Roth-IRA's and pre-tax retirement plans.
- Save for your children's college education using tax-favored plans.
- Pay off your house early.
- Build wealth and give!
I am looking forward to improving this skill throughout the next 9 weeks.