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Dave Ramsey - The 7 Baby Steps

Dave Ramsey - The 7 Baby Steps

Since we are starting a Dave Ramsey Fan group here on AR I thought it might be nice to list his 7 baby steps to financial freedom. Hopefully as this group grows there will be folks stopping by who are not so familiar with Dave's strategies. This will be a good quick outline for visitors to refer to.

1. $1,000 in an emergency fund. This is stashed away for true emergencies. The latest hot concert tickets going on sale is not an emergency. The water heater going out in your home is an emergency.

2. Pay off all debt except for your home utilizing the "debt snowball". What's the debt snowball? Look at all of your debts. Pay the minimum payments on all of them but the smallest debt. Put everything extra on the smallest. When it is paid off then take the same dollar amount you were paying on the smallest + the minimum on the next one and continue paying until that one is done. Continue working your way up the ladder making larger and larger payments on the larger debts. As the "snowball" gets larger the debts will go away faster.

3. 3-6 months of living expenses in savings. This is your security blanket against unexpected hard times (and slow real estate markets LOL)

4. Invest 15% of your household income into Roth IRAs and pretax retirement accounts.

5. Save for your kids college funds.

6. Pay off your home early.

7. Build wealth and give!

For more about Dave Ramsey visit his website www.DaveRamsey.com

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Bob Southard, e-ProRealtor®, Solid Source Realty, Inc. Buy or sell a home in Powder Springs, Marietta, Kennesaw, Acworth, Dallas, Hiram,and Cobb, Paulding, Douglas, North Fulton, South Cherokee, County, Ga

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*********

Bob Southard, e-Pro, Realtor ®, Solid Source Realty, Inc. Buy a home, Sell a home, in Powder Springs, Marietta, Kennesaw, Acworth, Smyrna, Dallas, Hiram,and Cobb, Paulding, Douglas, North Fulton, South Cherokee, County, Ga. Call me for all of your real estate needs.

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Posted by Bob Southard,e-Pro Powder Springs and Marietta Real Estate on 10/08/2008 02:19 PM

Comments (14)

Personal Finance in the Mortgage / Finance Channel

dave ramsey, baby steps

Post is included in group: Christianity and Real Estate
Post is included in group: Dave Ramsey FANS
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Post is included in group: Walking By Faith In The Rain!

14 Comments on Dave Ramsey - The 7 Baby Steps

OCT

2008

That's great, Bob! I joined the group this morning. It's about time we got a fan group for Dave and his wisdom about money management.

He's coming to the Pacific Northwest area soon and I can't wait to see him live. Keep fighting the good fight!

Thanks for sharing, Nicole Weidauer

The Egerer & Weidauer Team, Keller Williams Realty North Seattle

One of the questions posed by Tom Brokaw last night during the debate was WHO do you have in mind to become Sec Of Treasury?

Obama didn't have a name to give and McCain said Meg Whitman from EBAY. The only name that came to mind for me was Dave Ramsey. I'm sure he would never do it, but man...what do you think it would be like just 4 years down the road under Dave running the money?

Bob- Thanks for posting. I will go take a look at what Dave has to say. The basics you shared look to be good common sense to me.

Best,

Scott

Bob- These are great tips. I really enjoyed the one about debt snowballing. Thanks for posting these!

OCT

2008

Ilyce,

Wow, I'm excited to get a comment form you. I listen to you often when you are subbing for Clark. Thanks for the comment.

Scott,

Visit his website at www.DaveRamsey.com. If you haven't doen so already please hjoin our group and check back often.

Ron,

Dave running the money would make congress go insane! That could be a good thing :-). Imagine gov't with a banced budget.

Nicole,

thanks for joining the group! Enjoy Dave's live event and be sure to post here and tell us all about it.

Thanks for the reminder!!!! I have always been a big fan of Dave Ramsey! He is a wonderful man and a great financial advisor.

Rose,

Thanks for your comments. I'm not sure whre you saw the post but check out
http://activerain.com/groups/DaveRamseyFans

Thanks for the comments

OCT

2008

I have listened to Dave Ramsey for over 10 years, I give him credit for my successful real estate career. I would have never been able to handle the ups and downs of this business if it were not for his teachings. 1. no credit card debt is key. If some people looked at what they were spending on stupid things they would not be behind on their mortgages. Also, have you every looked at credit card statement at the end of the year to see what the interest was, I bet for many, it was equal to one mortgage payment. Glad to see this post!

OCT

2008

Bob, a great recap of seven common sense principles to be on solid financial footing.

OCT

2008

Hey Bob!

I'm new to Active Rain and this is one of the first groups that I've signed up for! I listen to Dave's Radio show all the time and love the way he answers his listners when they ask how he's doing by saying, "I'm better than I deserve." This quote just always reminds me of how blessed I already am. Feel free to come on over to my blog and comment anytime as I get more acquainted with Active Rain. I promise to shoot a comment back your way every time!

Kurtcares of Tucson, AZ

Bob, I'm glad to hear about a Dave Ramsey group. Years ago, I helped teach his principles to a group of high schoolers. Good stuff.

JAN

Bob...Thanks for the post. My husband and I are working the steps and it was great to have a Cash Christmas. I'm also trying to apply the steps to my business as well. Have a great 2009!

JAN

Bob, Thanks for this post. I'm new to AR and found this post and joined this group. I just completed teaching my 6th Finacial Peace University at our church. We have had over 125 attend this class. It is a passion of mine and has been a ministry for me.

I look forward to more conversation in this group.

Thanks, Greg

MAR

I have been looking for his class at local churches. His book is great. Common sense, baby steps. I'm on the first step and I can't wait to get to step 2. I'm going to reference your post in one that I have as a draft that I'll finish shortly.

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