So you've committed to not borrowing money again, have got a budget in place and are ready to start kicking debts bum right??...Well, not quite... Baby Step 1 (BS1) is to Save £1000 in Baby Emergency Fund (EF) This may seem counter-intuitive to a lot of people (Martin Lewis says to not have savings if you have debt but I beg to differ) but it really is a super important step. … [Read more...]
Baby Step 0 – Dave Ramsey Baby Steps UK Version
I'm just going to come out and say this straight away, Baby Step 0 (BS0) is the hardest step! It's a lot to get your head around and a lot of changes to make but once you commit to changing bad habits you have already won half the battle. Baby Step 0 is 'Commit to not borrowing for anything ever again (except for maybe a house in BS3b)' It sounds so simple doesn't it … [Read more...]
Baby Step 3 – Dave Ramsey Baby Steps UK Version
This step can be the one that people find difficult to keep their momentum up with. We've had all the awesome wins from paying off our debt in BS2 and now, Baby Step 3 (BS3) is to save 3-6 months of expenses in EF to make it your Fully Funded EF (FFEF) It can be hard to keep pushing yourself when you really feel like you deserve a break after all that hard work in Baby Step 2 … [Read more...]
Dave Ramsey’s Baby Steps (the UK version)
Dave Ramsey is an American Financial guru who has a money management plan that is broken down into 'Baby Steps'. Dave Ramsey's baby steps is all about freedom finance. It's a fantastic plan but it is very much geared for a US audience (it uses/mentions financial products and terms that aren't relevant here in the UK) so I've re-written them to align a bit more with our British … [Read more...]
Baby Step 2 – Debt Snowball – Dave Ramsey Baby Steps UK Version
The Debt Snowball is arguably the most important of the Baby Steps as it not only clears your debt, it changes your attitude towards money. Baby Step 2 (BS2) is to work on your Debt Snowball The Debt Snowball is a debt reduction strategy where you pay off your debts smallest to largest (regardless of the interest rate), this may seem a bit counter-intuitive to some people but … [Read more...]
