The Total Money Makeover: Classic Edition by Dave Ramsey

Author:Dave Ramsey
Language: eng
Format: mobi
Publisher: Thomas Nelson
Published: 2013-09-17T00:00:00+00:00

Hide It

When you get the $1,000, hide it. You can’t keep the money handy because it will get spent. If your $1,000 from Baby Step One is in the underwear drawer, the pizza man will get it. No, the pizza man isn’t in your underwear drawer, but you will impulse-buy something if the money is easily accessible. You can put it in the bank savings account, but it cannot become overdraft protection. Don’t attach the savings account to your checking to protect you from overdrafting because then your emergency fund will get spent on impulse. I have had to learn to protect myself from me. We are not putting the money in the bank to earn money, but rather to make it hard to get. Since $1,000 at 4 percent earns only $40 per year, you aren’t getting rich here, just finding a safe place to park money.

Get creative. Maria, who attended one of our classes, went to her local Wal-Mart and bought a cheap 8” x 10” frame. She framed ten $100 bills in a stack. In the space within the frame she wrote, “In case of emergency, break glass.” Then she hung the emergency fund on the wall behind coats in a closet. She knew the average burglar wouldn’t look there, and it would be too much trouble for her to get it out of the closet and out of the frame, so she wouldn’t use it unless there was an emergency. Whether you use a simple savings account or a frame in the coat closet, get your $1,000 quickly.

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