@nic.payingoffdebt: Step 1 in paying off debt should always be establishing an emergency fund. I’ve personally had to start over at step one more times than I can count and I’ve come to realize our family needs more security than $1000. #debtfreejourney #debtpayoff #budget #sinkingfunds #financialfreedom

Ndgigi_22 :

Sinking funds are a MUST!!! I agree with you!

Shannon :

I really think Dave Ramsey should update an emergency fund to 5,000 because 1,000 is nothing in today’s world

Daisy Hernandez :

I think that’s a great plan!! I follow Dave Ramsey but I like to have money on the side for those kind of emergencies.

swampa$$ :

I think that is the only thing I disagree with Dave Ramsey about when it comes to his baby steps. $1,000 emergency fund is not realistic due to this economy, owning a home, having pets and kids. Definitely have at least $5k

✨ Sara | Debt Payoff Journey ✨ :

In this day and age I feel like 1k is nothing

Bunny buys :

I would highly recommend putting your money in a high yield account!

Coverage Wisely :

Starting over after every surprise bill is exhausting. What expense has knocked your family off track most often? That seems like a useful starting point for choosing a buffer that fits your life.

Juli :

I think you should look at what it would cost to replace the most expensive item/appliance in your home if you have to replace it and that should be the min for that sinking fund. For ex, ac unit.

Sarah E. Wilson :

Yes I feel like I need 3-5,000 emergency fund

Audrey :

I haven’t listened to Ramsey on a decade. However, I thought he talked about envelopes for things like pets and expectable expenses.

thatjournalinggirl :

Our goal is 5k worth of emergency fund because of inflation just with how insane everything is right now. Gas is $6 milk is almost just as expensive and we have 3 kids to feed and clothe and we own our home so we are responsible for repairs obviously 😂

bri the pa tackles debt 💸 :

Most financial advisors recommend three months expenses. I would say at least one month is a good start!

Jess☀️🙄 :

Sinking funds are great. They have helped me not stress when I have any car problems or when my pets have an emergency. I only have to stress that they are ok not if I have the money

Methode | Organized Living :

this is exactly how we do it! we decided to grow our emergency fund to around 3k for the absolute random emergencies but adding to home, car, pet funds individually. we figured adding a little every month (better than nothing) adds up for whenever we need to dip into those

CuteDevil 🇨🇦 :

We never stop adding to our emergency fund. We both use the zero out method on all our bank accounts once a week. It all adds up fast.

Cathy Messier :

You’re making the right choice! I used the Dave Ramsey snowball method to pay off my student loans but it’s wild to me that he hasn’t updated the $1,000 in how many years now? It’s giving out of touch because he’s been wealthy for a very long time at this point and doesn’t actually have to think about how much things cost.

Anastasia :

Rooting for you! Building savings takes so much work but it’s worth it 🙌

bri the pa tackles debt 💸 :

I hope your dad is ok! That’s a big surgery 🥺

Molly Green :

we were so close to $1,000 and then last month our toilet broke, our washer flood our basement, my glasses broke and our cat died 😭🫠 literally all that happened in 10 days. got to build it up again

bri the pa tackles debt 💸 :

lexy nichole 🪻🌙 :

look into pet insurance if you haven't! I got mine through work so I won't recommend it solely because I didn't shop around but we had an unexpected visit in July while we moving and I got reimbursed over a third of the cost of the visit no questions asked. Ramsey is definitely outdated dollar wise. I don't follow any specific plan but more so tips from everyone, don't feel discouraged if something isn't working for you! there are so many ways to handle your personal finances.

Melisa :

Which budgeting app are you using

rose :

what budgeting app do you use? i use milo and its been so helpful to visualize where i’m spending money

Mel :

This is what I do. Emergency, House, & vacation. There is a family trip every year. $50 each to house and vacay and kee0 emergency at $1,000. Everything else to debt

JennX :

Anyone else remember the DeBeer’s commercials touting two months salary for an engagement ring? My goal is two months of my pay in the emergency fund ($10k.)