Dave Ramsey's Great Advice

Jim Daly Jim Daly is president and chief executive officer of Focus on the Family, a non-profit organization dedicated to helping families thrive.
Published Sep 23, 2011

Posted by Jim_Daly Sep 22, 2011

If you missed our two-day program with Dave Ramsey earlier this week, you can click here to access both shows. We talked about very practical matters relevant to every mom and dad. In fact, even the most seasoned family financial planner could learn something from the simple but solid wisdom of Dave Ramsey.

In the meantime, I think Dave’s “Seven Baby Steps” to financial peace deserve repeating. It's always a good time to return to foundational principles. So, I hope you’ll listen – and familiarize yourself with the following advice. If you've already started, how are you doing on Dave's program?

The Seven Baby Steps

Step 1: $1,000 in an emergency fund.

Step 2: Pay off all debt except the house utilizing the debt snowball.

Step 3: Three to six months of savings in a fully funded emergency fund.

Step 4: Invest 15% of your household income into Roth IRAs and pre-tax retirement plans.

Step 5: College Funding

Step 6: Pay off your home early.

Step 7: Build wealth and give.

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