Is It an Emergency?

Part of having an emergency fund is knowing what is, and what is not, an emergency. For those who are following Dave Ramsey's "Baby Steps," you know that step #1 is to put $1000 (or $500 if you are single and living alone) in the bank as a "beginner emergency fund."

After you are debt free, the third step is to "finish" the emergency fund; fully funding it to have 3- to 6-months worth of household expenses.

The reason a solid financial plan includes an emergency fund is because there are rainy days. While we don't like to think about it, we will have an emergency at some point. Having the money available is such a help.

I am now faced with the family dilemma of whether we are really in an "emergency" or not. We have our $1000 fund (it's actually nearly $1100), and we are now working the debt snowball. While we have quite a way to go (almost $20000), we are really making good progress.

And then...

The engine blows on our second car.

Here is what makes this a dilemma: we already have one car, and it is really good. While we think we need two vehicles, we might be able to make it on one for awhile. And, we really don't want to go deeper into debt just to have a second car! Add to that the fact that $1000 would not buy much of a car, and we don't want to completely deplete our emergency fund for this purpose.

Such are the times that make our heads spin!

What would you suggest?

Ramsey's First Show a Success

I love DVR! Our young people were involved in our Area-Wide Bible Bowl last night, so I was going to miss Dave Ramsey's first show on the new Fox Business Network. However, due to DVR, I was able to record the show and watch it later with my wife.

The first show, which Ramsey admitted was a little different from the way the format will regularly be, featured more of Dave giving his usual opening speech (middle-class roots, quickly became a millionaire, lost it all, learned more about how money really works, etc.). He also took one entire segment to outline the 7 Baby Steps that serve as the basis of his advice.

There were several phone calls and emails throughout the show, and these will form the major portion of the show on most nights. The only drawback, in my mind, is that the show is only one hour in length. The reason that is a drawback is because Ramsey seemed to hurry through the phone calls to cover more ground. Maybe that will change when the show is almost entirely phone calls and emails.

Overall, I enjoyed the show. If you like Ramsey's radio show, you will like the TV show. The graphics are well-done and easy to read, and the premise is simple: Dave behind a desk answering questions.

Catch the show each weekday at 8 Eastern/7 Central on Fox Business. If you are on DirecTV, the channel is 359.

5 Days Until Dave on TV

Dave Ramsey, whose "Baby Steps" have helped thousands get out of debt (and are helping many more--me included!)--will soon be on television.

For a long time, a local Nashville station has aired some of the Dave Ramsey radio show on its local market, but that failed to reach many people. So, in just five days, Dave will be on a new network, Fox Business Network, in a primetime slot.

It is worth checking with your local cable network to see if the network will be on in you area. GREAT NEWS: If you have DirecTV, you will be getting the network (channel 359). I enjoy hearing Ramsey's radio program, but don't get to hear it much (since I'm usually at work when he is on). A prime-time TV slot would let me see him (or record via DVR) the program and get a little "help" each day.

Click here for the link from Dave's website, which also features a short video about the move.

Here is the new network's website.