Get out of debt the same way you learned to walk, one step at a time.

• $1,000 to start an Emergency Fund

  An emergency fund is for those unexpected events that definitely will come up in life. Money magazine says that 78% of us will have a major negative event happen in any given 10-year period of time.
  

• Pay off all debt using the Debt Snowball

  List your debts in order with the smallest payoff or balance first (excluding the house). When you start knocking off the easier debts, you will start to see results and you will start to win in debt reduction.
  

• 3 to 6 months of expenses in savings

  Ask yourself, “Self, what would it take for you to live for 3 to 6 months if you lost your income?” Your answer to that question is how much you should save. Remember, this stash of money is NOT an investment; it is insurance you’re paying to yourself, a buffer between you and life.
  

• Invest 15% of household income into Roth IRAs and pre-tax retirement

  It’s finally time to get serious about building wealth! Don’t invest more than 15% because the extra money will help you complete the next two steps.
  

• College funding for children

  Breaking News! College IS possible without loans! The key is to plan for it and save. The best ways to save for college are with Education Savings Account (ESAs) and 529 plans.
  

• Pay off home early

  Can you imagine what life would be like if you had absolutely no payments – not even a house payment?! Throw all that “extra” money into the largest investment you’ve probably ever made: real estate.
  

• Build wealth and give!

  Build wealth and give like never before. Continue to work toward leaving an inheritance for generations to come. Bless others now with your excess. It's really the only way to live!

The best way to implement the 7 Baby Steps and take control of your money is through Dave's 13-week class, Financial Peace University.  Learn More