JSCATTLE":15mu1i40 said:
I like some parts of Dave Ramseys plan . If I can finance something for 0% interest I'm going to do that instead of tying up my cash . I keep 3 months bills worth in my savings account . I match my employer 401 and I max my roth ira out . I just started being able to save when I left the self employed life . I'm fine with working for someone else . I wouldn't tie my entire savings into something that I can't get to . Between my ira and pension and 401k . I save 25% of my income per year.
+1 on the 3 months worth of bills saved up :nod: That's one of the foundations of Dave's plan I absolutely agree with 100%
Though I don't actually have the $ in a savings account. The $ are in my "money market" checking account,which pays pathetic interest just like a saving account
:roll:
Beyond that, I keep a year's worth of cash to cover bills in CDs maturing every 3 months so I can get at the money on a regular basis throughout the year. I have to get the CD's out of the safe deposit box at the bank to deposit them. For some reason, Dave doesn't like CD's, but I find them to be the best vehicle for my plan.
Another part of Dave's plan I don't quite agree with is Dave's idea of keeping full coverage insurance on a car. I feel like I'm insuranced to death, so I look for prudent ways to trim costs where I can.
I bought a new car in Nov 2012 with 0%/3yr financing and of course was required to carry full coverage because I financed the car. Even if it is 0% they must be figuring some kind of interest in there somewhere. I got sick and tired of writing that check every month. So in Dec 2014 when the statement came in the mail, I just moved the decimal point and added another 0 on to the check. I paid 10 months with one full month remaining. When the final statement came, I expected it to be the same monthly amount I had been paying. But the final check I wrote was about $30 less. I don't have a good explanation for it :?
Probably was a tossup. I saved almost a year's worth of postage stamps and checks to send that monthly payment. The real savings is when I paid the car off, I was able to drop my full coverage insurance which saves about $200 per year. The deductible on the insurance was $500. I figure in a year's time I could have a $700 ding and would still break even. More damage than that, and I would of course be in the hole. $700 damage on these new cars is probably only a broken headlight :roll:
