The Dave Ramsey Seed:
I had come across an interesting video from Dave Ramsey‘s YouTube page ~
I suggest watch the video before you read my comments.
Done? Read on….
The main idea of the video was an application of pay yourself first. The car is in the top two of items payed for in the average American lifestyle. The house is the other of the top two.
Dave Ramsey’s video has a basic plan of:
- Buy a cost effective car (phase 1 car)
- Save money regularly for next car for 10 months (phase 1 bucket money)
- Sell phase 1 car & pool with phase 1 bucket money = money for phase 2 car
- Buy a better car with step 3 money (phase 2 car)
- Repeat process of steps 1-4 until car value is a reliable car of about $10K in value (phase x car)
- After step 5 put bucket money in a stable growth mutual fund
- Use a portion of the mutual fund to buy the next car after phase x car has been at the end of it’s life
- Repeat step 7 every 6 years
Birth of the WAVE-B Free Ride Project
This video is a great motivator. The problem with motivation is unless you take action it is worthless. The one image from the video that stood out in my head is the ball and chain being dragged by my car. I thought if I drive 30 days in a month it would cost me $15.83 a day extra to have a loan. (Gas cost enough – why put a surcharge on it?)
I thought the Drive Free Retire Rich plan is a great concept but, I would need to tweek it for my own life to get the most out of it. So this was the start of our personal adventure and the birth of the Free Ride Project.
Our Free Ride Starting Line
Our family has two cars with 209000k miles on one and 230000k on the other. One rides good (Mr 230 – Green Machine) and the other is so – so (Mr 209 – Ramsey Rover). The cars are in need of replacement so we are going to utilize the above plan and tweek it to supercharge the results….