Since I’ve been blogging about personal finance, one thing I’ve read quite a bit about and been impressed with is Dave Ramsey’s Baby Steps for getting out of debt. The M-Network of bloggers is currently doing a series of posts on the subject. You can check them out at the links below!
Posts in the Dave Ramsey’s Baby Step Series
- Overview at Cash Money Life
- Step 0 – No More Debt at Debt Free Revolution and Single Guy Money
- Step 1 – $1000.00 Emergency Fund at Gather Little By Little
- Step 2 – Pay off all debt using the Debt Snowball at I’ve Paid For This Twice Already
- Step 3 – 3 to 6 months of expenses in savings at Being Frugal
- Step 4 – Invest 15% of household income into Roth IRAs and pre-tax retirement at The Dough Roller
- Step 5 – College funding for children at at My Two Dollars
- Step 6 – Pay off your mortgage at Moolanomy
- Step 7 – Build wealth and give! at Plonkee Money
- Series Wrap Up at Being Frugal and I’ve Paid For This Twice Already
My Series On The 7 Baby Steps
I also did a series on the baby steps, which you can find through the links below.
- Step 1 – $1,000 to start an Emergency Fund: Before you even get started on the rest of the plan, you need to save up a little bit of cash just in case small emergencies happen. Things like flat tires, doctor visits, and flying somewhere for a funeral will usually be covered by this small emergency fund.
- Step 2 – Pay off all debt using the Debt Snowball: You list your debts from smallest to largest. Pay the minimums on all of your debts. With any leftover money you may have you pay extra on your smallest debt until it is paid off. You then roll that amount over to the next smallest debt.
- Step 3 – 3 to 6 months of expenses in savings: Save up 3-6 months of expenses in case of extreme misfortune like a job loss, illness or other long term problem.
- Step 4 – Invest 15% of household income into Roth IRAs and pre-tax retirement: Save for your retirement.
- Step 5 - College funding for children: After saving for retirement you can save for your children’s education and college expenses.
- Step 6 – Pay off home early: Make extra payments on the mortgage to pay it off early.
- Step 7 – Build wealth and give! (Invest in mutual funds and real estate): Continue building wealth through mutual funds and real estate, and give, give give!
If you’re considering trying the baby steps, give it a go! Even better, sign up for Dave Ramsey’s Financial Peace University for added accountability!
Have you tried the baby steps, or taken part in a Dave Ramsey class? Tell us about it in the comments!
