What baby step are you on?

STEP UP and WEIGH-IN…you’re invited to share your status or progress in working through Ramsey’s Baby Steps… surely you’re familiar with the 7 Baby Steps, so now the question is – which step are you currently on? 

Baby Step 1 – $1000 Emergency Fund

Baby Step 2 – Pay-Off Debt Smallest Balance to Largest Using the Debt Snowball

Baby Step 3 – Boost the Emergency Fund to 3-6 Months of Household Expenses

Baby Step 4 – 15% Earnings Invested for Retirement

Baby Step 5 – Start Savings for Your Child’s College Education (as applicable)

Baby Step 6 – Pay-Off the House

Baby Step 7 – Save, Invest, and Get Rich

I’ll start off the proceedings… my wife and I are currently between Baby Step 2 and 3.  Funny, I had to go and screw up the works from the start with a nonconforming response – but I can explain!

 We were poised to complete Step 2 in February 2009 until we decided to participate in my former employer’s buyout program.  So rather than pay-off our remaining non-mortgage debt we’ve elected to plow the buyout into an Emergency Fund until this unemployment storm passes.  The good news is that a job placement today – know of anyone hiring?? – will catapult us into Step 4 but for now, we’ll keep the umbrella handy seeing that, in our world, it is actually raining.

So what’s your story… what step are you on and how’s it working for you?

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