Dave Ramsey has been a fantastic resource for people that are struggling with debt… So what is there to disagree with? We share our perspective on what we like and what we would do differently.
- Dave Ramsey and Jonathan’s history following him
- Dave’s unyielding stance on debt: don’t do it
- Review and evaluate Dave’s teaching philosophies
- Baby Step 1: Get an emergency fund of $1,000
- Baby Step 2: Pay off all your debt except for your mortgage
- Explanation of the Debt Snowball
- Our hybrid approach to the Debt Snowball vs. Debt Avalanche
- Advice isn’t “one size fits all.” You need to figure out what works for you!
- The 4% rule explained and the impact on financial independence
- Dave Ramsey says to not take advantage of 401k match if you’re paying off debt
- The math of personal finance vs. the psychology of personal finance
- Baby Step 3: Get 3-6 months of expenses in savings
- Our personal emergency fund strategies
- Baby Step 4: Invest 15% of household income into Roth IRAs and pre-tax retirement funds
- Baby Step 5: College funding for children
- Baby Step 6: Pay off your home mortgage early
- Baby Step 7: Build wealth and give
- Please leave us a written review on Apple Podcasts to help the podcast grow
Corrections from the show
Roth’s do not require any seasoning period. You can withdraw your initial contributions tax free at any time for any reason. It does not have to season for five years. Practically this makes the Roth even more powerful as a possible savings vehicle during your teens and college years when your tax rate is very low
Links from the show:
- The Dave Ramsey Show
- Early Retirement Extreme
- Vanguard’s VTSAX
- Berkshire Hathaway stock info
- Markel stock info
- Radical Personal Finance
- Virginia 529
Books Mentioned in the Show:
- Financial Peace Revisited by Dave Ramsey
- The Total Money Makeover by Dave Ramsey
