Dave Ramsey's 7 Baby Steps

There's a way out of money stress: Dave Ramsey's 7 Baby Steps. They're designed to be followed one right after the other to lead you out of debt and stress and into a life of saving and giving. Millions have worked this proven plan. You can too! Start here.

Follow Dave Ramsey's 7 Baby Steps to Financial Peace

  • Baby Step 1: $1,000 cash in a beginner emergency fund
  • Baby Step 2: Use the debt snowball to pay off all your debt but the house
  • Baby Step 3: A fully funded emergency fund of 3 to 6 months of expenses
  • Baby Step 4: Invest 15% of your household income into retirement
  • Baby Step 5: Start saving for college
  • Baby Step 6: Pay off your home early
  • Baby Step 7: Build wealth and give generously
  1. Baby step 1: Save $1,000

    The first step Dave Ramsey recommends is to start an emergency fund for those unexpected events in life you can't plan for.
  2. Baby step 2: Pay Off Debt

    It's time to get out of debt! List all your debts except the house in order from the smallest balance to the largest. Your smallest balance should be your number one priority.
  3. Baby step 3: Emergency Fund

    This Baby Step is all about building a full emergency fund. Dave recommends having 3–6 months' worth of emergency savings.
  4. Baby step 4: Invest 15%

    Now it's time to get serious about retirement. With no payments and a fully funded emergency fund, put 15% of your income toward the retirement of your dreams.
  5. Baby step 5: Save for College

    College tuition 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.
  6. Baby step 6: Pay Off Your Home

    Perhaps the most exciting of Dave Ramsey's Baby Steps, number six is all about paying off your house.
  7. Baby step 7: Build Wealth & 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.

Getting Out of Debt Starts Now!

Don't let debt hold you back from reaching your financial goals. Dave Ramsey's 7 Baby Steps will help you take control of your finances and live debt-free. A great way to get started is Financial Peace University, Dave's most popular class that's helped more than 4.5 million people get out of debt and leave money stress behind.