Podcasts Business Careers ChooseFI 005 | Why Everyone Needs Dave Ramsey and Why You Should Ignore Him

005 | Why Everyone Needs Dave Ramsey and Why You Should Ignore Him

Published: Jan. 9, 2017, 10 a.m.

005 | In Today\u2019s Podcast we cover: Dave Ramsey and Jonathan\u2019s history following him Dave\u2019s unyielding stance on debt: don\u2019t do it Review and evaluate Dave\u2019s 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\u2019t \u201cone size fits all.\u201d \xa0You 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\u2019re 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 Itunes 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\xa0