Dave's Baby Steps 4, 5 &6

[MinMouse]

For those of you who are working Dave's steps do you work on more than one at a time. For instance, if you've completed step 4 (invest 15% for retirement) would you work on step 5 (save for college) and step 6 (pay off your home mortgage) simultaneously?

 

[mescad]

I don't follow his plan, but my wife went through the class at church, and I occasionally listen to him on the radio. My impression is that the steps are supposed to be done sequentially, not simultaneously. He'd probably advise you to complete step 4, then complete step 5, then complete step 6.

In your example, after step 4 is complete, if you're working on step 5 and have some extra money that you'd like to put toward step 6, you should instead put that money toward step 5. Paying off the house is something you can do eventually, but that college money needs to be there first.

I'm more familiar with the "getting out of debt" steps of his plan, so I may not be 100% right here.

 

[BethID]

I am at that point in following Dave Ramsey. I agree with OP; after step 4 is at 15% then you do steps 5 and 6 at the same time. At least, that is what we are doing. Plus, if you get the house paid off early, you will have more cash to help pay for college for your kids.

 

[MinMouse]

I am at that point in following Dave Ramsey. I agree with OP; after step 4 is at 15% then you do steps 5 and 6 at the same time. At least, that is what we are doing. Plus, if you get the house paid off early, you will have more cash to help pay for college for your kids.

Thanks BethID. That's where we are too. So now we want to figure out if we put all extras in the college fund or split it between college and house. We really want to make some financial goals in both of these areas for 2008! And save for a van (gently used of course) at the same time.

 

[TxDsnyGrl74]

Could someone post what all the steps are?

 

[MinMouse]

Dave Ramsey's Baby Steps to Financial Peace:

Baby Step 1: Save $1000 Starter Emergency Fund

Baby Step 2: Start the Debt Snowball

Baby Step 3: Finish the Emergency Fund

Baby Step 4: Invest 15% of Your Income in Retirement Funds

Baby Step 5: Save for College

Baby Step 6: Pay Off Your Home Mortgage

Baby Step 7: Build Wealth

 

[TxDsnyGrl74]

Dave Ramsey's Baby Steps to Financial Peace:

Baby Step 1: Save $1000 Starter Emergency Fund

Baby Step 2: Start the Debt Snowball

Baby Step 3: Finish the Emergency Fund

Baby Step 4: Invest 15% of Your Income in Retirement Funds

Baby Step 5: Save for College

Baby Step 6: Pay Off Your Home Mortgage

Baby Step 7: Build Wealth

Thanks!!