
Take Control of Your Money One Step at a Time
Building a new future with money is a lot like building a home.
You don't add the roof until you've finished framing, and you don't frame until
the foundation is secure. Dave Ramsey's Baby Steps are designed to help you out
of debt and stress and into a life of saving and giving. We're all in different
places with money. Start right where you are and get where you want to be.
Know-how is 20% of the equation. Behavior change and self-discipline make up
the other 80%. You can do it! Just follow the steps.
Here's The Process:
- $1,000
to Start an Emergency Fund An emergency fund is for
those unexpected events in life you can't plan for. Whether there's a
plumbing issue and everything but the kitchen sink is draining, or your
brakes are squealing at every stop sign, you can be ready! Learn More
- Pay
Off All Debt but the House List all debts but the
house in order. The smallest balance should be your number one priority.
Don't worry about interest rates unless two debts have similar payoffs. If
that's the case, then list the higher interest rate debt first. Learn More
- 3
to 6 Months of Expenses in Savings This step is all about
building a full emergency fund. It's time to kick debt for good, with 3–6
months' worth of emergency savings. Sit down and calculate how much you
need to live on for 3–6 months (for most that's between $10,000–15,000)
and start saving to protect yourself against life's bigger surprises like
the loss of a job. You'll never be in debt again—no matter what comes
your way. Learn More
- Invest
15% of Household Income Into Retirement Now it's time to
get serious about retirement. With no payments and a full emergency fund,
put 15% toward the retirement of your dreams. Between your 401(k), Roth
IRA, and Traditional IRA, you have a lot of options. Find the fit that is
right for you. The money you were using to attack debt can now help build
your future. Learn More
- College
Funding for Children College tuitions and housing expenses
continue to rise. Don't let college sneak up on you. Saving now will put
you ahead of the game when your kids graduate from high school. Two smart
ways to save for your kids' college are a 529 college savings fund or an
ESA (education savings account). These are both tax-advantaged savings
vehicles that let you save money for your kids' education expenses.
Learn More
- Pay
Off Home Early It takes the average family five to seven years to pay
their home off early. Just imagine life with no mortgage. There's only one
more debt standing in the way of freedom from all debt! Apply all the
extra money toward paying off your home. Not only are you paying off your
home early, you'll be saving tens of thousands of dollars in interest
fees. Learn More
- Build
Wealth and Give This is the last step and by far the most fun. It's time
to live and give like no one else! Build wealth, become insanely generous,
and leave an inheritance for future generations. You know what people with
no debt and no payments can do? Anything they want! Now that's leaving a
legacy. Learn More
Great, So Where Do I Start?
The first step in taking control of your money is to create some
cushion between you and life's little emergencies. Start by getting $1,000 in savings. It's
easier than you think, and it's absolutely worth it.
Most people can do it in a month or less, and these tools can
help you get started.
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