Wednesday, January 28, 2009

Dave Ramsey vs. Marvin J. Ashton

The computer screen says, "Tax Shelters of the Rich & Famous."
AKA, Swiss Bank Account...
My personal goal is to have one of these eventually.
How awesome would that be?
Pretty Awesome!
With the Economy as it is, there is much discussion on the ways to become self reliant and be ready for anything. So, in the recent days, my mind has been on how to apply money so that it works for me. Here are two plans that are what I will be applying into my life.

Dave Ramsey's Money Make over (He calls his steps, "Baby Steps".)
Step 1 - $1,000 to start an Emergency Fund.
Step 2 - Pay off all debt using the Debt Snowball.
Step 3 - 3 to 6 months of expenses in savings.
Step 4 - Invest 15% of household income into Roth IRAs and pre-tax retirement.
Step 5 - College funding for children.
Step 6 - Pay off home early.
Step 7 - Build wealth and give! (Invest in mutual funds and real estate).

As I wrapped my mine on these steps from Dave, it brought back another Money Guru. That would be Elder Marvin J. Ashton. The LDS church publishes a pamphlet that was once green but now it has been updated and is gold, which is called "One for the Money: Guide to family finance."

1.) Pay an Honest Tithing (10%)
2.) Learn to mange money before it manges you
3.) Learn self-discipline and self-restraint in money matters (Debt-Elimination Calendar)
4.) Use a budget
5.) Teach family members early the importance of working and learning
6.) Teach children to make money decisions in keeping with their capacities to comprehend
7.) Teach each family member to contribute to the total family welfare
8.) Make education a continuing process
9.) Work toward home ownership
10.) Appropriately involve yourself in an insurance program
11.) Understand the influence of external forces on family finances and investments
12.) Appropriately involve yourself in a food storage and emergency preparedness program.
Personally, I think Ramsey wins!!! But both of these ideas should be implemented for the well rounded and self-reliant person. Going to work on the Baby Step Program with Dave and teach Sydney at the same time. She will think it fun. She likes to see money grow!

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