Dave Ramsey Baby Steps

Have you thought about becoming debt free and financial independent? Dave Ramsey has 7 baby steps to help you achieve that goal.

Baby Step 1 – Create An Emergency Fund

The first step is to create an emergency fund. This is intended to help you in-case of an unexpected expense comes up. Ideally you’d want to have 1 months salary saved up.

Baby Step 2 – Paying off Credit Card Debt

The debt snowball calculator is a tool that’ll help you pay off your credit card debt. The idea behind this is you add all of your credit cards into the debt snowball spreadsheet and then starting paying off your debt. As you pay off one credit card you’ll roll that payment over to the next credit card. This will create a debt avalanche and have you paying off your debt very quickly.

Baby Step 3 – Increase Your Emergency Fund To 4 Months of Your Salary

Baby Step 4 – Start Investing 15% of Your Income For Retirement

Baby Step 5 – Saving For Kid’s College

Baby Step 6 – Pay Off Your Mortgage

Baby Step 7 – Start Building Wealth