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Learn how to follow the proven plan that's helped millions of people ditch debt and build wealth with Dave Ramsey's 7 Baby Steps. Find out the steps, books, courses, calculators and tools to help you take control of your money.
- Save $1000 for your emergency fund. Before you do anything else, Dave wants you to put $1000 away in case “Murphy moves in.” You’ll increase this amount later, but for now, focus on the $1000.
- Pay off all debt using the debt snowball method (except your home). This is where things get intense — gazelle intense, as Dave says. Order your debts from smallest to largest, and begin putting all your extra money to the smallest debt first.
- Save 3-6 months of your expenses. After you’ve completed baby step 2, now you work on building up your emergency savings above that $1000 starter fund.
- Invest 15% of your income into pre-tax and Roth IRA retirement accounts. Of all the Dave Ramsey steps, this one is often overlooked, but it’s so important.
- 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.
Download a PDF of the tracker to save $1,000 for your starter emergency fund in one month. Learn how to use the tracker and the 7 Baby Steps to pay off debt and win with money.
Baby Step 3 - 3 to 6 months of expenses in savings . Once you complete the first two baby steps, you will have built serious momentum. But don’t start throwing all your “extra” money into investments quite yet. It’s time to build your full emergency fund. Baby Step 4 - Invest 15% of household income into Roth IRAs and pre-tax retirement
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Oct 7, 2014 · Download a PDF file with Dave Ramsey's seven steps to achieve financial stability and wealth. Learn how to build an emergency fund, pay off debt, save for retirement, and more.
