Hello, Winebbers, my name is Jesse Meekham and this is

podcast number 93 for you need a budget where we teach you four rules to

help you stop living paycheck to paycheck, get out of debt, and save more money.

A little bit ago, Mark posted on the blog about his savings priorities.

I wanted to pull them up really quick.

The post was from July 30. So it was almost a month ago and this is where he was at. He wants a one month buffer, $5,100.

Number two, a three month emergency fund, which would be 15.

15 grand, excuse me.

Three, pay off all debt other than the primary mortgage

on the house. And he's talked about this.

It's roughly 72 grand.

Then 4 finish his basement and make other home improvements.

Number 5 is saved for kids college. And then number 6 is safe for his retirement. So here's how I would

shake things up a little bit. I liked Mr Money Mustache's approach that he talked about debt. He used some

colorful language so I won't quote him but he said you treat your debt like a

massive emergency.

I think he might have tied it into bees

crawling all over your face or something.

I can't remember it.

I just remember laughing and it resonated. But he saw dead as a huge emergency. There's a little

bit of momentum that needs to be built and not having any buffer at all could

kill that. So what you don't want to be doing is going back into debt as you're trying to get out of debt and you'd be going back into debt because you are operating on a very, very tight rope.

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