Dave Ramsey - The 7 Baby Steps
Since we are starting a Dave Ramsey Fan group here on AR I thought it might be nice to list his 7 baby steps to financial freedom. Hopefully as this group grows there will be folks stopping by who are not so familiar with Dave's strategies. This will be a good quick outline for visitors to refer to.
1. $1,000 in an emergency fund. This is stashed away for true emergencies. The latest hot concert tickets going on sale is not an emergency. The water heater going out in your home is an emergency.
2. Pay off all debt except for your home utilizing the "debt snowball". What's the debt snowball? Look at all of your debts. Pay the minimum payments on all of them but the smallest debt. Put everything extra on the smallest. When it is paid off then take the same dollar amount you were paying on the smallest + the minimum on the next one and continue paying until that one is done. Continue working your way up the ladder making larger and larger payments on the larger debts. As the "snowball" gets larger the debts will go away faster.
3. 3-6 months of living expenses in savings. This is your security blanket against unexpected hard times (and slow real estate markets LOL)
4. Invest 15% of your household income into Roth IRAs and pretax retirement accounts.
5. Save for your kids college funds.
6. Pay off your home early.
7. Build wealth and give!
For more about Dave Ramsey visit his website www.DaveRamsey.com
Bob Southard, e-ProRealtor®, Solid Source Realty, Inc. Buy or sell a home in Powder Springs, Marietta, Kennesaw, Acworth, Dallas, Hiram,and Cobb, Paulding, Douglas, North Fulton, South Cherokee, County, Ga
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Buy a home, Sell a home, in Powder Springs, Marietta, Kennesaw, Acworth, Smyrna, Dallas, Hiram,and Cobb, Paulding, Douglas, North Fulton, South Cherokee, County, Ga. Call me for all of your real estate needs.
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