On the Road Towards Financial Freedom One Step at a Time
Friday, October 19, 2012
Dave
Ramsey ,an American financial author, motivational speaker, radio host, and TV personality, written an article
entitled “The Seven Baby Steps”. It’s all about the solutions on how to get out
of debt and achieve financial freedom. I’ve read this few months ago while I
was googling tips on achieving financial independence and added it to my
compilation of How-to articles.
In case you haven’t read the
article, let me tell you about the process:
Baby Step 1: Build a $1,000 Emergency Fund
$10,000, So that’s more or less
42,000 pesos. An emergency fund is set aside for those unexpected events in
life r such a loss of job, hospitalized family member, etc. The advantage of maintaining an emergency
fund is that when such things happen, you need not borrow money, which,
according to Dave Ramsey will break the debt cycle.
This is definitely important. My son
was hospitalized for four days due to measles and acute gastroenteritis. Our
little son started to got sick barely a month after my husband went back to his
overseas job. Due to meager savings, we had to borrow from my in-laws to pay
for the hospital bill. The incident made us realize that we really have to set
aside money for emergency purposes.
Baby Step 2: Pay off all debt using the Debt Snowball
Mr. Ramsey suggested listing down debts, excluding the house, in order.
The smallest balance should be the top priority. Paying off smaller debts is a motivational
factor in attaining one’s goals to getting out of debt. This is known as the
debt snowball method which is becoming popular as a basic debt-reduction method
taught by many financial and wealth experts.
Read more about the remaining steps and how will I implement them in the next post.
3 Comments
Hi there! I just would like to offer you a huge thumbs up for the
ReplyDeletegreat information you have got right here on this post.
I'll be returning to your website for more soon.
Here is my web blog ... cash advance direct lender
Wow that was unusual. I just wrote an very long comment but after I
ReplyDeleteclicked submit my comment didn't show up. Grrrr... well I'm not writing all that over again.
Regardless, just wanted to say great blog!
Have a look at my webpage :: Www Payday loan
Excellent blog here! Also your web site loads up very fast!
ReplyDeleteWhat host are you using? Can I get your affiliate link to your host?
I wish my website loaded up as fast as yours lol
My page: forex market makers