For those of you who have been tuning into our Dave Ramsey chat step 3-7 are more about stability and building wealth. Steps 1 and 2 focus on stabilizing your budget and learning to live within your means. As Dave would say the borrower is slave to the lender.
So, onto Baby Step 3. Here the emphasis is to build on step 1's baby emergency fund and create a fully funded emergency fund. It is time to bank 3-6 months worth of expenses. For us we are primarily a single income family( I do small jobs on the side, but my income is not steady it is excess). So if my dear husband would lose his job tomorrow we would need to have the means to pay the mortgage, utilities, etc. until he was able to find work again. The fully funded emergency fund allows you to live 3-6 months paying for the necessities while looking for steady income. Also, if tomorrow he still had a job, but the engine blew in his car we would have the funds to repair it immediately so that he may return to his job. Baby step 3 allows you to truly live a less stressful life as you learn to manage what all God has blessed you with.
If your interested in learning more check out more posts here:
Dave Ramsey Intro
Dave Ramsey-Baby Step 1
Dave Ramsey- Baby Step 2
or visit. http://www.daveramsey.com
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