Dave Ramsey Baby Steps
25 January 2009
One of the basis of the teaching that Dave Ramsey does in the book The Total Money Makeover is called the Baby Steps. The Dave Ramsey Baby Steps are 7 steps to the completetion of your own Total Money Makeover. The phrase Dave uses is that you live like no one else now so that later you can live like no one else. His 7 Baby Steps involve using discipline and budgeting now to get debt free so you can invest and later be so financially well off that you can be wealthy later in life and do as you wish. The 7 Dave Ramsey Baby Steps while not exactly worded go like this.
Save $1000 Quick (Covers emergencies to keep you from charging.)
Work your Debt Snowball to pay off all debt except your mortgage.
Fully fund your emergency savings of 3 – 6 month of expenses.
Invest 15% of your income in retirement savings, 401K, Roth IRA (Preferred) or IRA
Save college funding for your children.
Pay off your mortgage
Continue investing in growth stock mutual funds or real estate and give wealth away.
