Dave Ramsey is a financial mega star in the US. His daily radio show is syndicated all around

the country and all around the world in podcast format. He has helped countless people achieve what he calls financial peace.

Yep, I'm a big fan, but some of the stuff he says needs anglicizing a little bit about Dave Ramsey's baby steps last week.

I love his framework for building on different skills and things you need to do to build wealth over time.

Some elements of them though tend to raise questions about how to apply them here in the UK.

So I thought that what I would do is try and address that in five minutes.

Fair to say I'd put good odds on me getting nowhere near the five minute deadline here today.

But let's have a go anyway and I'm going to stick five minutes on the clock down here.

Say a quick thank you to my friends at 7 the clock down here. Say a quick thank you to my friends at

seven investment management down here for continuing to sponsor the show and we're

going to crack on. Okay so Dave Ramsey's baby step number one is to save a starter

emergency fund of $1,000.

Nothing much to anglicize here except maybe making it

a thousand pounds, not dollars, because you know what use are they over here.

The idea of having a small emergency fund behind you, smallish anyway, is to keep Murphy at bay.

Save what? Murphy? Well, Dave Ramsey refers to Murphy's law, which we here in the UK would call

Sods Law that doesn't sound quite so good to say we're here to keep SOD at

bay sods law Murphy's law basically say that what can go wrong will go wrong. A cash buffer allows that while you

were working on the next baby step which is paying down debt, if something

happens which is going to cause a dent in your monthly budget, you don't have to

get deeper into debt to sort that out.

So we're talking things like unexpected car repairs or having to change the cooker or something

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