Dave Ramsey recommends using the following 7 baby steps to get out of debt, become financially stable, and build wealth:
- Establish $1000 as an emergency fund.
- Use the debt snowball to pay off all your debts except the mortgage.
- Increase the amount of your emergency fund to 3-6 months of expenses.
- Invest 15% of household income into pre-tax savings (Roth IRA, 401(k)).
- Begin college funding for children.
- Pay off your home early.
- Build wealth and give!
You can go directly to Dave’s website and read about his baby steps here.
