​
Passion to Prosper

  • Home
  • Contact
  • Give, Save, Spend BOOK
  • Coaching
  • Financial Fitness
  • Net Worth Club
  • Speaking
  • Blog
  • ABOUT

7/23/2016

Baby Step 1:  Save $1000 Quick

0 Comments

Read Now
 
Picture

In Dave Ramsey's 7 Baby Steps to wealth building, the first step is called Baby Step 1:  Save $1000 fast in a starter emergency fund.  As a single mother, I can tell you, this step saved my life, and got me on the road to turning my financial life around.  You see, I had always made good money.  But I blew most of it.  At the height of my career I had been making $100,000 a year, but had so much debt and out of control expenses after my divorce that my dream of purchasing a home for myself and my children was out of reach.  This was a wake-up call for me:  I made too much money to be so broke!

I decided to follow the Baby Steps, which help you build wealth by dumping debt and increasing savings.  Baby Step 1 is to save $1000 fast.  This breaks the debt cycle by giving you a buffer between you and life.  Any new emergencies are paid out of this fund instead of using a credit card.  This $1000 is insurance.  It should be kept in a place where it is liquid and easily available, like a simple savings account, or cash at home.  If you make less than $20,000 a year Dave recommends you save just $500 for Baby Step 1.

There are lots of ways to save $1000 fast.  Have a garage sale, or sell something on craigslist/facebook/ebay.  Cut back on discretionary spending like eating out or traveling for a month or two.  Take on an extra side job, or work overtime at your current job.  I had some money in savings, so I simply took my savings down to $1000 and then threw the rest of the savings at my debt, which is Baby Step 2~coming soon in the next blog!

 In the past, I always used to "outearn my stupidity", as Dave talks about.  I knew I could always make money to cover expenses and unexpected costs, but it kept me constantly scrambling, and on edge emotionally.  Baby Step 1 changed all that.  Once I had $1000 in the bank that was untouchable for anything but emergencies I slept better at night.  There is such a deep peace that comes from knowing you have a backup. ​ While I was getting out of debt I had to use the emergency fund 3 times for car repairs of about $300 each.  This was easy and peaceful, without the stress and worry I experienced before.  What a relief!  I simply paid the bill out of the fund, and then replenished my emergency fund with my monthly income.

How can you free up $1000 fast for your Baby Step 1?  I guarantee it, this one step will change your life!  It will take you from feeling out of control financially to having actual peace in the realm of money.  It is a game-changer.  And hopefully it will inspire you to go on to Baby Step 2, and knock out all of your debt except your home!  

Share

0 Comments



Leave a Reply.

Details

    Kathy Kali

    Coach.  Teacher.  Author. Speaker.
    ​

    Archives

    February 2023
    April 2022
    April 2021
    March 2021
    November 2020
    September 2020
    August 2020
    July 2020
    May 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    March 2019
    January 2019
    August 2018
    April 2018
    January 2018
    October 2017
    June 2017
    February 2017
    January 2017
    November 2016
    October 2016
    August 2016
    July 2016
    June 2016
    May 2016
    March 2016

    Categories

    All

    RSS Feed

Copyright Kathy Kali Money & Business Coach.

  • Home
  • Contact
  • Give, Save, Spend BOOK
  • Coaching
  • Financial Fitness
  • Net Worth Club
  • Speaking
  • Blog
  • ABOUT