Monday, April 11, 2011

Dave Ramsey's Baby Steps

In recent post I have talked about  Financial Peace University offer by Dave Ramsey. I thought I would share a little bit about it with those of you who might not be familiar. It feels good to have a plan and if you don't have one then this is a good one to follow.

Baby Step 1: Get an emergency fund of $1,000

Baby Step 2: Debt Snowball/Pay off all debt

Baby Step 3: 3-6 month of living expenses saved

Baby Step 4: Invest 15% of income into savings Roth IRA and other pre-tax retirement accounts

Baby Step 5: College fund for your kids

Baby Step 6: Pay off your house early

Baby Step 7: Build wealth and give

If you want more info on any of these steps you can find it here.

I am really excited about step 7. One of my spiritual gifts is giving, but right now with the amount of debt we have it is very difficult to give. I think that is what I am most looking forward to when we get out of debt!