Money Tip #3

I got a lot of great feedback about the money tips, so I'm going to keep them up!


Before, I was going over Dave Ramsey's baby steps.


Step #3


Once you've paid off all your debt (excluding your house), save 3-6 months worth of living expenses.


This is where Josh and I are now.  It seems easy because you've just finished working really hard at getting out of debt.  And honestly, it is easy.  But you have to remember to not spend all the extra money you have now!


How to choose whether to save 3 or 6 months worth?  Well, look at your own situation.  Is your job on the rocks, or does the economy affect your job in a major way?  Do you own your own business, or is only one person working in the family?  Go ahead and save 6 months.


Is your job pretty stable?  You can lean more towards 3 months.


I know it sounds funny with the economy right now.  "Is your job pretty stable?"


And how to know how much is 3 or 6 months worth?  That's easy!  Just take your monthly budget and times it by how many months you want to save for. Ta-da.  It's the easiest thing you've done so far.