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Dave Ramsey's 7 Baby Steps will show you how to save for emergencies, pay off all your debt for good, and build wealth. It’s not a fairy tale. It works every single time!
- Save $1,000 for your starter emergency fund.
- Pay off all debt (except the house) using the debt snowball.
- Save 3–6 months of expenses in a fully funded emergency fund.
- Invest 15% of your household income in retirement.
- 9 min
- Save $1,000 for Your Starter Emergency Fund. Only 32% of Americans say they can pay cash for a $400 emergency.That means 68% of them are borrowing, selling or going into debt when life happens.
- Pay Off All Debt (Except the House) Using the Debt Snowball. Debt’s good for one thing and one thing only: holding you back. But you don’t want to be held back.
- Save 3–6 Months of Expenses in a Fully Funded Emergency Fund. The debt is gone. Goodbye, debt. Talk to you never. Now, you’re going to build up that emergency savings fund so it’s strong enough to stand up to bigger problems, like job loss.
- Invest 15% of Your Household Income in Retirement. For some people, retirement can seem like tomorrow’s problem. But that kind of thinking will leave you working for the rest of your life.
The Ramsey Baby Steps Once you decide to take control of your money, you need a realistic plan that works. That’s why Dave Ramsey created the 7 Baby Steps— a clear, proven path that has helped thousands of people pay off debt and win with money. In this step, your goal is to pay off all of your debt using the debt snowball. How to Use the ...
- Save $1,000 for Your Starter Emergency Fund. In this first step, your goal is to save $1,000 as fast as you can. Your emergency fund will cover those unexpected life events you can't plan for.
- Pay Off All Debt (Except the House) Using the Debt Snowball. Next, it’s time to pay off the cars, the credit cards, and your student loans.
- Save 3–6 Months of Expenses in a Fully Funded Emergency Fund. You’ve paid off your debt! Don’t slow down now. Take that money you were throwing at your debt and build a fully funded emergency fund that covers 3–6 months of your expenses.
- Invest 15% of Your Household Income in Retirement. It's time to get serious about retirement—no matter your age. Take 15% of your gross household income and start investing it into your retirement.
You win with money the same way you learn to walk - one step at a time. That's where the 7 Baby Steps come in. Here's the process: Baby Step 1: Save $1,000 for Your Starter Emergency Fund. In this first step, your goal is to save $1,000 as fast as you can.
Oct 25, 2023 · New to budgeting and on Baby Step 1? This guide will help you start your first monthly budget and build a $1,000 emergency fund.
