For those of you who aren’t familiar with Mr. Ramsey’s teachings, his program helps people get out of debt and prosper financially by following a series of baby steps.
Baby Step # 1: $1,000 to start an Emergency Fund
Baby Step # 2: Pay off all debt using the Debt Snowball
Baby Step # 3: 3 to 6 months of expenses in savings (full emergency fund)
Baby Step # 4: Invest 15% of household income into Roth IRAs and pre-tax retirement
Baby Step # 5: College funding for children
Baby Step # 6: Pay off your home early
Baby Step # 7: Build wealth and give
Dave Ramsey’s baby step number one is establishing a $1,000 emergency fund so that you can start to hack your way out of debt. The idea is that the $1,000 will be enough in savings to deal with most emergencies such as a car repair or hot water heater disaster. Even the large emergencies such as a hospital bill can be negotiated and put on a payment plan, and that $1,000 will keep you from sliding back into the debt hole. For many people, starting is the hardest part. And, that is the reason for the contest.
If you don’t have a $1,000 emergency fund, you should get on that immediately, and Dave Ramsey’s contest just might help you get there. Just fill out this form to register.