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Home > We Are On Step Six...I Think

We Are On Step Six...I Think

April 15th, 2008 at 04:08 pm

Yes, I'm a little partial to Dave Ramsey. I don't listen to him on the radio as often as I once did. I think he has some valid points as far as getting out of debt and having an emergency fund.

We would be on Baby Step 6, which means we should be paying our house off early. We have our 3-6 months EF, we contribute 15% to retirement and are funding our kids college. So we should be using all our extra dollars to pay off our house. But we are not.

Right now our extra dollars are going to save for a down payment on a van that we will finance. Dave Ramsey wouldn't like that would he? Technically, we don't need a new van, but we will soon. I guess we are tired of driving older vehicles. DR would say I'm being a baby, right?

As far as paying off the house...since we are now full time Army we have the potential of moving every three to five years. How do you pay off a house that way? My goal is just to always have enough cash to put down 20% and pay the realtor if necessary. Even then...maybe we shouldn't be buying a house. Maybe we should rent. I don't like that idea either, but it may be worth a shot next time.

So, I'm on step 5.75!! Not quite to Baby Step 6 on the Dave Ramsey Makeover.

P.S. The van would be used...but new to us. Maybe a Honda or Toyota...2005 or later.

Posted in Uncategorized | 7 Comments »

7 Responses to “We Are On Step Six...I Think”

  1. littlemama Says:
    April 15th, 2008 at 04:14 pm 1208272464
    1208272464

    You are doing great! My DH and I are on step 3 (actually starting that today). YEA!!! Hope to have it fully funded by October. Smile

  2. Ima saver Says:
    April 15th, 2008 at 04:19 pm 1208272785
    1208272785

    doing good!!

  3. Carolina Bound Says:
    April 15th, 2008 at 04:26 pm 1208273209
    1208273209

    If you are moving every 3-5 years, I agree that buying a house may not be the way to go. I guess it would all depend on the quality of the rentals you can find.

    In this real estate market, I think there are a lot of people wanting to sell but willing to rent.

  4. merch Says:
    April 15th, 2008 at 05:04 pm 1208275496
    1208275496

    Yep, your right DR wouldn’t like financing the van. If you were to finance the van, then you would go to baby step 2. So effectively, you would have to stop your retirement and college savings. Is that worth a van?

    Most commonly the answer is no. So he would say to save up for the van. An how long would that take 6 months or a year? He would also say that your cars shouldn’t be more then 10% of your income.

    His argument would be you are doing so good, why would you want to go back in debt? I would tend to agree with him. And you are doing great!!!

    As for the house, that’s a tough one. I could go either way.

  5. merch Says:
    April 15th, 2008 at 09:24 pm 1208291069
    1208291069

    Shouldn't be more than 25% of your income.

  6. creditcardfree Says:
    April 15th, 2008 at 09:30 pm 1208291416
    1208291416

    The van would be more than 10% of our income, but less than 25%. I think I am procrastinating taking on more debt. The DH has other plans. I'll see how long I can hold him off!!

  7. terri77 Says:
    April 16th, 2008 at 01:22 am 1208305352
    1208305352

    You're further along than I am! Good job.

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