“Get out of debt the same way you learned to walk–one step at a time.”
This article describes Dave Ramsey’s seven steps that anyone can take to get out of debt and begin to manage their personal finances. These seven basic principles have been taught by Mr. Ramsey via radio, books, Financial Peace University, live events, and online. Listed below are the seven steps discussed in this article. Note: You can get more information about each step by clicking on the “Learn More” tab.
- Begin by creating a $1,000 emergency fund.
- Pay off all debt using the debt snowball .
- Save 3 to 6 months of expenses in a savings account.
- Invest 15 percent of household income into Roth IRAs and pre-tax retirement accounts.
- Create a college funding plan for your children.
- Pay off your home mortgage early.
- Build wealth and give.
For more information, click here.
You may want to use the information in this blog post and the original article to
- Ask students visit the Dave Ramsey website.
- Discuss some or all of the seven baby steps described in this article. Reminder: Students can get more information by clicking on the “Learn More” tab.
- How can the seven baby steps help you manage your personal finances?
- Do the steps in this article make you want to change your priorities and what’s important in your life? Justify your answer.