1. $1,000 to start an emergency fund.
2. Pay off all debt using the Debt Snowball.
3. 3 to 6 months of expenses to savings.
4. Invest 15% of household income into Roth IRA’s and pre-tax retirement.
5. College funding for children.
6. Pay off home early.
7. Build wealth and give.
When you are in debt over your head, these 7 Baby Steps seem unachievable in today’s society, especially when you look at steps 6 and 7. Wow! How would it be to not have a mortgage? To have money that you will happily give to someone else? To actually have some spare change?
In my next post I will discuss step 1. I had considered continuing the discussion in this post, but it made more sense to me to keep it separate.