- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Tips for paying off debt?
Posted on 6/27/15 at 1:47 pm to TDsngumbo
Posted on 6/27/15 at 1:47 pm to TDsngumbo
quote:
Dave Ramsey is simply out of touch with reality if he truly believes $1,000 is a good starter emergency fund. If anything, $5,000 is a good beginning to an emergency fund in today's reality. $1,000 may have been good enough to start with in 1995 or 2000 but not in 2015.
This was brought up on Dave's show a couple of times, his response was that if someone is already thousands of dollars in debt the probability that they can accumulate $5,000-$10,000 for an emergency fund as step one is small. Just like paying of the smallest debt first regardless of interest rate doesn't make mathematical sense it gives the person a sense they have accomplished something toward their goal, the $1000 emergency fund is used as a starting point because it is more likely to be achievable, and at the same time provide a little relief for small emergencies. When you have only debt $1000.00 can make a difference. In his plan if you are forced to use the emergency fund the debt payment should be stopped until the emergency fund is back to $1000.00 so that somewhat take care of the case of having multiple emergencies that exceed $1000.00.
This post was edited on 6/27/15 at 1:57 pm
Popular
Back to top
Follow TigerDroppings for LSU Football News