I've noticed a few folk on here are following Dave Ramsey's baby steps.  I finished The Total Money Makeover by Dave, and I'm so geared up to get "Gazelle-focused" and turn my debt situation on its' end.  Also, I'm coaching my mother through her own money makeover - her and my Dad owe aprox $230K!

How many current members are following his program?  What phase are you in?

Hello

  I have not read Daves book. Although I listen to his program when possible. The show has moivated me even more to get the debts paid off faster. I have changed my payments a little, I used to pay the highest intrest rate first. Now I pay the smallest amount first. Overall I agree with his ideas. At this point I would say that I am gazelle focused. I feel for once I can and will conquer the debt. Rather the the debt draining and defeatinting me.

I have started separate funds for upcoming budget items and expenses as well. I have a 1 year emergency fund now too.

I'm so excited about this I have to respond to my own question:  Right now I'm in the first phase.  I need to get some health insurance (anyone know of a good place to get some cheap high-risk insurance for a few months?) and I'm also working on my $1k emergency fund.  It's time already to stop the *need* for credit. 

My mom is building up her $1k Emergency fund as well ($600 of which is coming from 50,000 "rewards" points from her credit card which she can redeem as a check!)

We've both decided to be each others' "sponsor" and talk on the phone frequently about financial decisions.  Any time we need to be strong about staying disciplined, we send a text message or a call and ask for advice or support.  It's only been a few days but it's got a very positive start to it.

We've both decided to be each others' "sponsor" and talk on the phone frequently about financial decisions.  Any time we need to be strong about staying disciplined, we send a text message or a call and ask for advice or support.

What a great idea!  I'm sure it is a relief when you have someone there to hold you accountable just in case you get off track...

As far as 1k for emergency fund, is this to get started or will you build it up more once you reach that goal?

Just to get started.

I've read it, but we aren't following his plan to the letter. It's great for motivation, etc, but we don't agree completely with everything he say.

The success stories are fun to read though!

I guess we'd still be on baby step one according to his plan. Since we don't have a fixed income, right now we are just trying to pay bills and save a little money to live off of *just in case* and we're paying off debt as much as we can in the meantime.

Please keep in mind that Dave Ramsey is not the be all and end all of personal finance.  For instance, Dave says, "always pay cash for a car, that is how the rich stay rich."  This makes no sense.  If you can finance a car for 60 months, and pay it off in 12 why would you do that?  Same thing goes with a mortgage, you can turn a 40 year mortgage into a 30.  A 30 into a 20.  Please don't let Dave Ramsey be the "be all and end all" of personal finance for yourself.  Personal finance blogs carry much more useful information.

I guess I have baby step one and three down. Working on the snowball right now.

We've read a bit of Ramsey's stuff and I agree...I don't agree with all of it, but it is good for motivation and encouragement.  We have friends that follow Ramsey and they are QUITE perturbed that we don't.  I encourage you to remember, as it's just been mentioned, that it isn't the end-all and be-all.  Everyone has a system that works for them--or doesn't work.  If it works for you, that's terrific.  But I know for us, it's gotten in the way of the friendship, which is sad.

I really loved reading Dave Ramsey . . . I just have a problem with staying gazelle intense once I get to that point.  Like I'll take my books down to the used book store to sell, and then stop for a coffee on the way home!  How do you all stay motivated?