Step one in the Dave Ramsey course is to put $1000 in an emergency fund. Eric and I met with our financial advisor today. My plan was to put $1000 from my checking account into a money market or something he recommended, to start our emergency fund. However Eric pointed out that we have checks from our home equity line of credit, and it's not maxed out. Eric wants me to in essence consider that available money as our emergency fund. But just until our credit cards are paid off. So, I'm putting that $1000 to my credit card. I called to ask for a lower interest rate, and those jerks wouldn't give me one. Our financial advisor Justin tells me Chase offers a 0% interest on transfers, so I'm going to try that next. That gives me $400 left in my checking account, and I just happen to have 4 weeks until I get paid again. So, I have $100 cash to spend each week. I hope to spend even less than that!
Well, I'm off to call Chase!
3 comments:
Yeah! Get ready for rice and beans, and beans and rice.
Congrats on starting Dave Ramsey! I love Dave Ramsey and listen to his podcasts all the time. I do believe though, that he would tell you to use your home eq - bc that means you are just borrowing more money. Search for his podcasts in iTunes, you will love them!
Dave's plan would tell you NOT to use your HELOC for your emergency fund..its like using your credit card for an emergency. The idea of the $1000 is to have it, not borrow it. Its a long slow road but its a GREAT reward when you get it all said and done! I have been debt free for 14 months now! (minus a house loan at 4.6% interest) Its so doable but it takes work, I'm glad your doing it!!! You go girl!
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