Not Your Average Financial Podcast™

Episode 72: The Seven Baby Steps and the Dave Ramsey Gospel


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In this episode, we ask:

  • Have you heard about the Seven Baby Steps?
  • How does Dave Ramsey forego logic?
  • Who sponsors Dave Ramsey?
  • Are annuities worth Dave Ramsey’s disgust face?
  • Why does Dave Ramsey’s advice stay written in stone?
  • Are you an avid follower?
  • What are the baby steps?
    • Have you saved $1K in an emergency fund?
    • Have you used the debt snowball method to pay of debts?
    • Have you set up a fully funded emergency fund of three to six months worth of expenses?
    • Have you invested 15% of household income into retirement?
    • Have you started saving for college?
    • Have you paid off your home early?
    • Have you built wealth and do you give generously?
    • What do we love about Dave Ramsey?
    • Why are the baby steps awesome?
    • What do we love about Dave’s teachings?
    • What about saving $1K cash in an emergency fund?
      • Is $1K a big enough improvement?
      • …What has changed since Dave Ramsey first started? Is his advice out of date?
      • How does that affect what you truly need to save?
      • What’s the smallest ideal emergency fund in today’s dollars?
      • What about the debt snowball method for paying off debts?
        • Is it better to go on math or emotion?
        • What is the benefit to paying the debt with the smallest balance, regardless of interest rate?
        • How did Mark and Katrina use the snowball method on student debt?
        • What did Mark and Katrina’s mentor ask?
        • Is it possible to be BETTER than debt free?
        • What is Holly’s story?
        • Is the snowball method the holy grail of debt payoff wisdom?
        • What did Holly’s friend do with their car as a result of the snowball method?
        • Is it about numbers or feelings?
        • Is everyone’s situation the same?
        • Is Dave Ramsey regulated by any governing authority?
        • Does Dave Ramsey have any credentials?
        • What about credit card faith?
        • What about faith in the freedom from debt?
        • Is it possible to use credit cards safely and responsibly?
        • What about setting up a fully funded emergency fund of three to six months of expenses?
          • Is this enough?
          • Do you need at least 12 months of a fully funded emergency fund?
          • What about saving 15% of your income for retirement?
            • What assumptions are these based on?
            • Can you make a real return (CAGR) of 12%? What are the odds?
            • Do you want to bank on 2% chances of getting 12%?
            • What about saving for college?
              • Who has a problem with saving for the children?
              • What does Dave recommend?
              • What is the big risk with a 529 plan?
              • What happens if the market crashes when your kid is in school?
              • See Episode 27
              • What about paying off your home early?
                • Should you pay off or refinance your mortgage?
                • Is this the pinnacle of human existence?
                • See Episode 14
                • Can you make an annual 12% return in your mutual funds?
                • What is true in today’s dollars and interest rates?
                • Why doesn’t Dave Ramsey update his recommendations based on the modern day realities?
                • What about building wealth and giving?
                  • Why not give on day 1?
                  • Why not build wealth on day 1?
                  • How does the death benefit on a life insurance policy do just this?
                  • What idea is Dave Ramsey selling?
                  • How does that affect you and your family ultimately?
                  • ...more
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