I think I'm going to jump in here. I will admit that I haven't read much Dave Ramsey (and truthfully his personality kind of grates on me from what I have experienced
) but I get the gist of the plan and think these are some sound financial principles, nonetheless. We were out of debt and had savings, now we've eroded a lot of savings and built up some debt over the past year. DH has been doing the finances for the last couple of years (I did it the whole time before) and while he's very conscientious about paying the bills, I think that it really takes both people being on the same page and communicating a lot and both being knowledgable and informed and in agreement about their finances to manage family finances well. Unless one person just does it all and hands down a spending budget to the other person and/or a personal allowance, which isn't agreeable to either of us. So we're getting back into communication about our finances and working on it together. I think we've strayed away from it because we've had some conflicts about money and financial matters, and those have played themselves out in the way we have handled our money in the last year with bad results.
BS 1: Baby Emergency Fund: Done, basically. We have the money, right now we're just reshuffling where we're keeping it and changing how we do our bookkeeping. So I closed one savings account at our bank, transferred the $ into checking, and started an emergency fund savings account at an online bank with a hundred dollars. Once the account is verified and we balance the checking account, I'll deposit the rest of the $ in there.
BS 2: Pay off Debts: I need to check the exact status of this but right now we owe about 10,000 on one credit card. (Again, DH does the bill payments and is tracking the balances, so unless I ask him I'm not sure about exactly what's going on off the top of my head.) We just took another $5,000 out of savings and paid off another card. I think we'll be paying another $4,000 or so from our savings to the 10,000, which should leave us with a total debt of around $6000 and about $1000 in emergency savings. I'm also going to try to get a 0% balance transfer or a lower interest rate. It's at 7.9%, so it could be much worse, but then again, any interest paid is too much!!
BS 3 & 4: Since DH started this job (1 1/2 years here) he's been putting 25% or so of income into an employer matched retirement plan. We're realizing that this has been good to catch up a bit since we don't really have enough retirement savings, but it's leaving us too cash strapped. We just started DD in preschool this fall and that is expensive (but saving my sanity and allowing me to do a bit of part-time work, so it's a good trade off in the long run but doesn't leave us with enough $ for the variable expenses and savings.) So we're actually going to dial back the retirement to 15% so we can start paying off the debt and start accruing more emergency savings again.
BS 5: College funding: Not yet. Some of our savings was earmarked for her but we're going to use it to pay off debt and then start a separate account for her and start paying it back.
Although my DD does have an account started by her grandparents, so that's something, and DH's work has him in a university setting so if he's still in a similar boat our kid(s) can get free tuition where he works. Still need to save for her, though.
BS 6: Pay off house early: We do have a 30 year mortgage, and don't want to be tied in to a higher monthly payment for a 15-20 year loan. But once we have adequate emergency savings (and for me right now I'm thinking that 6-9 months of expenses are a better target, given the economic times and the fact that it would likely take that long for DH to find a new job if he lost his job) we'll start making an extra payment or two a year toward principle, which will in effect be similar to a shorter mortgage term. We already have a good chunk of equity in the house and I think our mortgage is fairly reasonable, so that's a positive.