7 Dave Ramsey Baby Steps: Start Saving & Become Debt Free

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Dave Ramsey is an American financial guru who has written best-selling books and hosted a nationally syndicated radio show. He was born in Tennessee but now lives in the Nashville area with his family.

In 2006, he started dave Ramsey baby steps to teach people how to become debt-free by first saving money in order to pay off their debts.

The Dave Ramsey baby steps are broken into five stages: $1,000 emergency fund; pay off all debt using the debt snowball; save for retirement; save for your child’s education or buy your own home (or both); begin giving 10% of income away as tithes and offerings.

Who is Dave Ramsey?

Dave Ramsey is a well-known personal finance guru and author of the Dave Ramsey baby steps. He also hosts his own nationally syndicated radio show and has written a number of best-selling books on financial planning, including Financial Peace Revisited: Living Your Dreams Without Buried in Debt. Dave Ramsey was born in Tennessee but now lives with his family in Nashville, Tennessee where he grew up.

In 2006 Dave Ramsey started dave Ramsey baby steps to teach people how to become debt-free by first saving money so they can pay off their debts instead of paying them down from smallest balance to largest balance which many are taught is the correct way to do it. The Dave Ramsey baby steps consist of five stages consisting of each stage being broken into smaller parts.

Below we have listed famous book by Dave Ramsey:

  • Financial Peace: The dave Ramsey baby steps for adults
  • Entreleadership: Syndicated radio show and has written a number of best-selling books on financial planning, including Financial Peace Revisited: Living Your Dreams Without Buried in Debt.
  • Financial Peace Revisited: Living Your Dreams Without Buried in Debt.

We have also published some amazing guides on How to Get Free MoneyRich VS Wealthy & More…

Dave Ramsey’s 7 Baby Steps

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

The very first baby step in Ramsey’s plan is to save $1000 in a savings account. The dave Ramsey baby steps plan is designed for people who are living paycheck-to-paycheck, meaning that they constantly spend the money they earn on day-to-day expenses and live from one payday to another without any room left over to save some of what they make.

Baby Step 2: Pay Off All Debt (Except the House) Using the Debt Snowball

The Dave Ramsey baby steps plan recommends paying off all debts except the mortgage or other home loan, using what is called a debt snowball. What this means is that you start with your smallest debt and use any extra money to pay it down as quickly as possible.

Once you have paid off one of these lower-balance accounts, roll its balance into another account like it (or add $50 if necessary) in order to continue chipping away at higher balances.

The idea behind the Dave Ramsey baby steps plan is that by focusing on smaller debts first, people are able to feel victorious after each victory – which leads them toward continuing their good progress rather than becoming discouraged because they don’t see results right away or losing steam.

Baby Step 3: Save 3-6 months of expenses in an emergency fund

Some people don’t think to include emergency savings in their budget because they can’t yet afford it. But if you never have an emergency fund, then the reality is that your credit cards or personal loans will be your source of last resort when something unexpected happens – meaning even a small problem could quickly spiral out of control into a full-fledged financial disaster for those without any money saved up for emergencies.

Dave Ramsey’s baby steps plan recommends saving three to six months’ worth of expenses as soon as possible and keeping this money separate from funds used on other parts of life (i.e., groceries). The reason behind this strategy is so that no matter what event comes up at work, home, or otherwise.

Baby Step 4: Invest 15% of your household income for retirement

Dave Ramsey’s baby steps plan recommends saving three to six months’ worth of expenses as soon as possible and keeping this money separate from funds used on other parts of life (i.e., groceries). The reason behind this strategy is so that no matter what event comes up at work, home, or otherwise.

The key to dave Ramsey baby steps success is making sure you have a safety net should anything go wrong – because the reality is that everything will eventually go wrong without some preparation ahead of time! If something does happen then your credit cards can take care of things while you get yourself back on track by following dave.

Baby Step 5: Save for your children’s college fund

By this step, you’ve cleared all your debts and are now saving for your children’s college fund, Dave Ramsey baby steps. This is not an easy task to do and it will take a lot of work on the parents’ part but if you start early enough it can be achievable.

Baby Step 6: Pay off your home early

These Dave Ramsey baby steps will depend on your current financial situation, but if you’re doing dave Ramsey baby steps then of course this is a goal! Paying off the house early means that there are no mortgage payments to make and it also provides more cash for retirement. This can be achieved by refinancing or just making extra monthly payments.

Baby Step 7: Build wealth and give

By these dave Ramsey baby steps, you’ll be able to get out of debt and become rich! The goal is not to have a lot of money in your bank account but rather the ability to help others.

Since starting dave Ramsey baby steps, I’ve been able to pay for my car loan early which has saved me about $500 each month because I no longer make those monthly payments.

I’m also saving $250 every paycheck with automatic deposits into our mutual fund accounts and we’re building up our savings so that one day we can take all four kids on vacation without breaking the budget!

Now dave Baby Steps are complete.”

Final Words

Dave Ramsey Baby Steps are a plan for getting out of debt and into financial freedom. The steps include saving money, paying off your debts with the snowball method, establishing an emergency fund, investing 15% of household income in retirement accounts each month, and building wealth by buying real estate.

If you have any questions about this popular financial management technique or would like to hear more about it from our team of experts then please leave us a comment below!

I lead product content strategy for SaltMoney. Additionally, I’m helping our broader team of 4 evolve into a mature content strategy practice with the right documentation and processes to deliver quality work. Prior to Instacart, I was a content strategy lead at Uber Eats and Facebook. Before that, I was a content strategist at SapientNitro, helping major Fortune 500 brands create better, more useful digital content.

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