Today, Dave Ramsey is known as a successful businessman that helps others find financial peace. His ability to share financial wisdom with others was birthed from his own financial struggles. He made his first fortune in the real estate industry, and later lost everything, having to file for bankruptcy. This experience took him on a journey to discover how money actually works. The results of his journey are what we now know as the Dave Ramsey Seven Baby Steps. These seven steps are what turned things around in his life and are doing the same for many around the globe!
Dave Ramsey established Ramsey Solutions to provide “biblically based, common-sense education and empowerment that give HOPE to everyone in every walk of life” (Ramsey Solutions). In other words, Dave Ramsey uses biblical principles and practical applications as a way to inject hope into people’s financial struggles.
The Dave Ramsey Seven Baby Steps
Managing finances can be an overwhelming experience for many of us. Accumulating debt, lack of understanding, mis-prioritization, and budgeting struggles are just a few of the reasons managing our finances can be overwhelming. Dave Ramsey designed the Seven Baby Steps program to create a simple financial plan that literally anyone can do!
Often, we try to tackle our financial problems all at once. Ever tried to start a budget, get rid of debt, and open a saving account all at once? It can become really overwhelming. The Dave Ramsey Seven Baby Steps are just that, baby steps to help you take over your finances little by little. Education, encouragement, and empowerment the principles that make these seven steps possible. Let’s take a look at each of the steps…
The Dave Ramsey Seven Baby Steps:
Baby Step #1
This step is building an emergency fund by saving $1000 as quickly as possible. Having an emergency fund helps reduce stress when unplanned expenses pop up. Less stress means more peace!
Baby Step #2
This is step is designed to begin attacking debt with the exception of a mortgage payment. In this step, you learn how to pay off your debt using the debt snowball. This tactic focuses knocking out one debt at a time instead of paying a little bit on each debt. If you want to create momentum in seeing your debt disappear this is a proven method!
Baby Step #3
This step teaches you how to begin saving. Again, savings reduce stress and less stress means more peace. In this step you learn how and begin to save 3–6 months worth of expenses!
Baby Step #4
In this step you learn how to make your money make more money by investing into your retirement. Here, Dave shows you how to begin investing 15% of your income for the future!
Baby Step #5
This step is designed to help you start saving for your children’s college fund. Not only are you saving, but in this step, you begin saving for the future generation!
Baby Step #6
Now that you have an emergency fund, debts paid off, and investments building its time to pay of your house early. Paying down your mortgage early can save you thousands!
Baby Step #7
The last step in your journey to financial peace and freedom is to continue to build wealth and start giving. Reaching this step and the ability to give generously is a sign that you are walking in financial freedom!
These seven steps are proven to teach you how to manage your money better, meet small goals along the way, and learn to make financial decisions with confidence. As Dave says,
“Winning at money is 80 percent behavior and 20 percent head knowledge. What to do isn’t the problem; doing it is. Most of us know what to do, but we just don’t do it. If I can control the guy in the mirror, I can be skinny and rich.”
Dave Ramsey and Faith
Watch Dave’s amazing story here!
Written by Sarah Crockett