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Kindle Notes & Highlights
by
Dave Ramsey
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January 20 - February 2, 2018
The same applies to you. If you use the emergency fund, return to Baby Step One until you have re-funded your beginner emergency fund; then move right back to your Debt Snowball, Baby Step Two.
Smaller and medium-sized debts are what we want to pay off at this step.
One, you free up your most powerful wealth-building tool, your income, during this step. Two, you take on the entire American culture by declaring war on debt.
You are beginning to see the power of being in control of your largest wealth-building tool, your income.
A fully funded emergency fund covers three to six months of expenses.
3-6 months is key
A Country Financial Security Index survey found that 49 percent of Americans could cover less than one month’s expenses if they lost their income.
Country financial security index
The mission statement for the emergency fund is to protect you against storms, give you peace of mind, and keep the next problem from becoming debt.
Beware of using the emergency fund for the wrong reasons.
Gazelle-intensity, budgeting, selling ankle-weight cars, and overall total commitment to the plan are the only ways using that savings makes sense.
men are more task-oriented, and ladies are more security-based.
The rule is simple: Invest 15 percent of before-tax gross income annually toward retirement.
Indicates yearly investment out of the yearly income
your income, ahead of inflation ’til death do you part. You get a cost-of-living raise from your nest egg every year.
They invest 15 percent of their income in four types of growth-stock mutual funds with five- to ten-year track records.
Check if we can do this
all of us over forty are giving you a collective yell, “INVEST NOW!”
The book Emotional Intelligence reported a similar finding. In studying successful people, the author discovered that 15 percent of success could be attributed to training and education, while 85 percent was attributed to attitude, perseverance, diligence, and vision.
The first rule of college (whether for you or for your children) is: pay cash. The second rule is: if you have the cash or the scholarship, go.
According to USA Today, two out of three college students take out student loans.
Stars to remember
Stay away from loans; make plans to avoid borrowing.
College tuition goes up faster than regular inflation.
I suggest funding college, or at least the first step of college, with an Educational Savings Account (ESA), funded in a growth-stock mutual fund.
grave danger!
Good term , can be used
if you invested what you pay in monthly payments, you’d be a debt-free millionaire before long.
Good point about spending money
If you get a big tax refund, you’ve just allowed the government to use your money interest-free for one year.
lower-interest debt to invest in higher-return investments.
adjusting the returns for risk.
put systems and programs in place that make me do smart things.
simple mutual funds and debt-free real estate as my investment mix
A good estate-planning attorney, a CPA or tax expert, an insurance pro, an investment pro, and a good Realtor are a few of the essential team members you should gather around you.
You have reached the Pinnacle Point when you can live off 8 percent of your nest egg.
