Dear Dave,
I’ve been listening to your radio show and as a result I’ve decided that I’m tired of living paycheck to paycheck and being broke all the time. I know Baby Step 1 saves a beginner emergency find of $1,000. But do you recommend staying on top of past due bills before starting Baby Steps?
Edward
Dear Edward,
I love it! When people decide to change their lives, and they talk about it like you do, I know they are serious about making something good happen. You’re tired of being sick and tired, and you’re going to take control of your money And your life. Let’s get started!
First things first. Make sure you are aware of all the supplies you need. I’m talking about food, clothing, shelter, transportation and utilities. Next, make sure you’re current (or making payment arrangements) for any consumer debt you have, including credit cards. This does not apply to your home, but we will get to that in a moment.
You are perfect with Baby Step 1. Next comes the debt snowball and Baby Step 2. Start paying off all debts except your house, from small to large. Once you pay off this debt, you can save more fairly quickly and increase your beginner emergency fund to a fully funded emergency fund with three to six months of expenses. This is baby step 3.
At this point you can Real start planning for the future. In Baby Step 4 you start investing 15 percent of your income for your pension. If you have children, the next step in Baby Step 5 is to set something aside to help them study. Baby step 6 is a milestone. This is when you start throwing tons of cash at your mortgage and paying off your house early. I told you we’d get back to this, didn’t I?
But Edward, the real deal is Baby Step 7. Why? Because this is the moment when all your hard work, discipline, and wise financial decisions have gotten you to a place where you can build wealth like crazy. Not only that, you can give and help others by being extremely generous. At this point you secure your future And helping others in a big way.
Go make it happen, dude. Take control of your finances, your life and be a blessing to others!
–Dave
*Dave Ramsey is a nine-time national bestselling author, personal finance expert and host of The Ramsey Show. He appeared onGood morning America,CBS this morning,Nowadays Fox News, CNN, Fox Business and many more. Since 1992, Dave has helped people take control of their money, build wealth, and improve their lives. He is also CEO of Ramsey Solutions.
Dave Ramsey is an eight-time national bestselling author, personal finance expert and host of “The Ramsey Show.” He has appeared on “Good Morning America,” “CBS This Morning,” “Today,” Fox News, CNN, Fox Business and many more. Since 1992, Dave has helped people regain control of their money, build wealth, and improve their lives. He is also CEO of Ramsey Solutions and is the author of numerous books, including Baby Steps Millionaires: How Ordinary People Built Extraordinary Wealth – and How You Can Do It Too.
#Dave #Sick #tired #sick #tired