Khizer Husain
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    Financial Basics Guide

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    What is this guide?
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    Who is this guide for?
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    Where do I disagree with Ramsey? Where do some people disagree?

    0) Learn How to Budget.

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    How?
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    Useful videos:

    1) Build a starter emergency fund. This is $1000.

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    Why?
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    Useful Videos:

    2) Use the Debt Snowball Method to pay off ALL DEBT

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    How?
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    Examples
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    Useful Videos:

    3) Save six months of expenses in an emergency fund.

    Congrats on being debt-free! After this step, we can ease up on the intensity.

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    Why six months?
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    What should my budget look like in this step?
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    When can I use my emergency fund?
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    After a 6-month emergency fund, we still remain intense.

    4a) Invest 5% of your income into retirement accounts

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    Why?
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    What order should I invest in retirement?
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    What should my budget look like in this step?

    4b) Save towards a downpayment

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    How much do I need to save for a downpayment?
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    What should I look for when buying a house?
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    Can I buy things like cars, shoes, and dope things at this stage?
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    Useful Videos:

    5) Get a Mortgage

    This is where the path REALLY deviates from Ramsey, and I’ll dive into specifics. First, I will define a few terms, explain why I believe his approach is unrealistic for most people living in California, and then highlight a more realistic balance.

    Once you’ve secured the mortgage, shift back to 15% for retirement.

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    Definitions for common mortgage terms
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    How does interest impact a mortgage over 15 years?
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    How much home can you afford using Dave’s rule?
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    What is the advice I’d give to Californians?
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    How much home would you get approved for under traditional guidelines?

    Now that a mortgage is secured, we can go from intensity to intentionality. We are back to the plan. These next steps occur at the same time.

    6) Invest 15% of your income into retirement accounts

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    What order should I invest in retirement?
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    What should my budget look like in this step?

    7) Treat yourself.

    8) Pay off the home early.

    9) Give and share with others.

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    If this was helpful, consider donating to the nonprofit I’m currently fundraising for!

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    If you’d like to get coached on managing finances and budgets, you can sign up here.