Dave Ramsey - The 7 baby steps explained

 Dave Ramsey - The 7 baby steps explained



Do steps 1-3 fast and intensely


Baby step 1 
-save 1000 dollars in 30 days

Baby step 2 
Debt snowball
-List your debt from smallest to largest items
-make minimum payments on everything but the littlest debt item you have and attack the little one with a vengance!
-Debt Free in two years

Baby step 3
-Save 3-6 months of expenses in a fully funded emegency fund
-now your ready for life's problems and issues
-now you are actually at ground zero and EVEN, now you are ready to actually build wealth

Do steps 4-6 slow and intentional

Baby step 4
-You put 15% of your income aside into good growth stock mutual funds in retirement plans
-do roth iras before traditional iras
-do match ira before roths
-up to the 15%
-dont do 10% dont do 20% do 15%

While doing baby step 4 your going to be dont baby step 5 and 6 simultaneously

Baby step 5
-this is where we are saving for our children's college fund
-student loan problems are parenting problems, parents are wrong for letting students sign up for loans they cannot afford

Baby step 6
-pay off your house

Baby step 7
-millionare possible in 10 years 
-continue to build wealth and raise your generosity of helping people