Personal Finance 101

Saving is a fundamental part of the Baby Steps. That may sound counterintuitive for a program intending to eliminate debt ...

While Dave Ramsey’s Seven Baby Steps have formed the map to financial freedom for many, the members of the forums have used their experience to expand the basic steps into ‘turn-by-turn’ directions.

0.1: Commit to never borrowing money ever again, other than possibly a house.
Getting out of debt and remaining debt free is the underpinning of Dave Ramsey’s plan for financial peace. That begins with a commitment to never borrowing money. Dave does make an exception for mortgages that fit certain criteria.
0.2: Talk with spouse and get him/her on the same page as you concerning finances.
It is possible to ...

Dave Ramsey believes that by following his Seven Baby Steps people can achieve Financial Peace. Eliminating debt, saving for the future and paying off your home are all financially important goals, but trying to do them all at once will dilute your efforts. The Baby Steps plan works by focusing all your energy--and income--on one of these goals at a time.

Baby Step 1: $1,000 in an emergency fund

You might be tempted to skip this step and jump to paying off your debt, but DON’T. The emergency fund is your ‘Murphy Repellent’; it will keep you on track and ...