Dave Ramsey's Baby Steps

  • Baby Step 1: Place $1,000 in a beginner emergency fund ($500 if your income is under $20,000 per year).
  • Baby Step 2: Pay off all debt except your home mortgage using the debt snowball.
  • Baby Step 3: Put three to six months of expenses into savings as a full emergency fund.
  • Baby Step 4: Invest 15 percent of your household income into Roth IRAs and pretax retirement plans.
  • Baby Step 5: Start college funding for your kids.
  • Baby Step 6: Pay off your home early.
  • Baby Step 7: Build wealth and give.
Jason R. Price @jasonrprice