By the end of the 6th month. the couple will have paid offCredit Card #1 as well. According to the couple, “no matter what they do entrance essay for college, they just can’t seem to get ahead ” and whenever they do have some extra cash they end up “blowing it ” on “crap” they don’t need. A more realistic option is for the couple to set about $2000 in an emergency fund to help protect them from the expense of any emergencies. As Dave Ramsey suggests, the idea of a “baby emergency fund ” is to “cushion” the couple’s ability to prevent acquiring any more debt than they already have. Most of you who’ve been reading my personal finance blog for any length of time know that I am a big fan of personal finance guru Dave Ramsey and his approach to personal finance. While I don’t agree with everything he says. I believe his 7 Baby Steps to Finance Freedom are a decent foundation to base a financial plan on. 8 months later (now 19 months into our scenario ) the couple will have paid off the student loan debt as well! With a plan in place, and the motivation of seeing that pay off their debt is actually possible. our couple can stay focused and possibly cut additional expenses out of their lives to speed up the debt free process even more ! After fully funding their emergency fund help with writing a dissertation books, our couple needs to start increasing their retirement savings. The wife should consider “maxing out ” her employer’s 401k and start either a Roth or Traditional IRA for her husband. By now our couple is in their early thirties allowing at least 25-30 years to save for retirement. Here is what their debts will look like in the debt snowball spreadsheet, note that I have rearranged the debts starting with the lowest balance and working up to the largest balance: After talking with them a little more, we learn they don’t have any money in their savings (emergency fund or otherwise). I also learned the wife hadn’t enrolled in her employer’s 401K program yet (the husband was self employed).
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