![]() ![]() With 1 in place, you can now focus on the heavy and likely long-term part – the bigger debts. ![]() Step 2: Pay Off All Debt with the Debt Snowball Once you have this money in your account, you can move on to step 2 of the baby steps. ![]() It also is a great way to get motivated the psychology behind it is if you see the tiny amount go up in your account, you will be encouraged to focus and keep going. This emergency fund serves as a buffer for any unexpected expenses such as car repairs, home repairs, etc that could have you reaching for a credit card or bank loan. A Mini Breakdown of Dave Ramsey’s Seven Baby Steps to Financial Freedom Step 1: Save $1,000 Cash in an Emergency Fund If you will make the sacrifices now that most people aren’t willing to make, later on, you will be able to live as those folks will never be able to live.Īt the center of Dave’s philosophy is what he calls the seven baby steps, which will lead to financial freedom if followed in order. Things were going well but I was still missing an element and reading this book helped everything fall into place and set me on a definite path to building true wealth while paying off my debt.ĭave Ramsey’s method is comprised of consistency and perseverance and can be uncomfortable at the onset. I discovered The Total Money Makeover after about a year of practicing the concepts outlined in The Automatic Millionaire. ![]()
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