Tuesday, March 01, 2016

Dave Ramsey's 7 Baby Steps

In an effort to become the best stewards of all that God entrusts to us, Daniel and I are attempting to follow Dave Ramsey's 7 baby steps. We went through Dave's Financial Peace University back in 2012 when I was pregnant with Susanna (Bitty Bit) and were able to pay off all our (non real estate) debt before selling our house and buying land in 2013. We went backwards and right back into debt however when we went way over budget building our house. This is attempt #2 to go through Financial Peace University and follow the baby steps. This time we aim to stick with the plan and see it through all the way to baby step #7! We are currently on baby step #2 and doing all the we can to knockout all our debt. It's not easy but we have found joy and peace in the process and best of all we are starting to see results!

Here are the 7 baby steps.

  • Baby Step 1 – $1,000 to start an Emergency Fund
  • Baby Step 2 – Pay off all debt using the Debt Snowball
  • Baby Step 3 – 3 to 6 months of expenses in savings
  • Baby Step 4 – Invest 15% of household income into Roth IRAs and pre-tax retirement
  • Baby Step 5 – College funding for children
  • Baby Step 6 – Pay off home early
  • Baby Step 7 – Build wealth and give!
May I encourage you to seek out an FPU class in your area? Click here to find a class in your area! 

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