Dave Ramsey is my favorite personal finance guru and his Total Money Makeover
baby steps are a great plan to help anyone to get out of debt and start building wealth. But, having read Dave 
Ramsey’s Total Money Makeover several times, I realize that people need a checklist to remember the baby steps for debt reduction. This article will provide you a simple checklist for Dave Ramsey’s baby steps for debt reduction.
- Step 1: Start A $1,000 Emergency Fund.
- Step 2: Pay Off Debt Using Dave’s Debt Snowball Method.
- Step 3: Expand Your Emergency Fund to 3 to 6 Months of Expenses.
- Step 4: Invest 15% of Income into your 401(k), IRA or Other Available Tax Exempt Retirement Accounts.
- Step 5: Start Saving For Your Children’s College Education
- Step 6: Pay off your home mortgage.
- Step 7: Continue to build wealth and give charitably.
Despite there being 7 baby steps in Dave Ramsey's Total Money Makeover, their is an important prerequisite to starting these baby steps - you must get current on all bills. Once you have paid all of your bills so you are current, you are ready for step one of the Total Money Makeover.
Step one is a critical step, but in my experience the most overlooked step in Dave Ramsey’s system. You need the triage emergency fund so that life’s little emergencies don’t cause you to have to go back in debt.
Step two is Dave’s famous debt snowball method of paying down your debts. If you are serious about paying off your debt, you will survive step two, but it will require discipline and focus.
After you finish step 2, you are well on your way to a changing your life financially. By the time you hit step 7, your life will have been changed and you will be able to live life like no one else.
In the next couple of articles, I will be exploring Dave Ramsey’s baby steps in a lot more detail. I hope you enjoy this series. If you haven't read Dave's book, definitely buy a copy today here - Total Money Makeover
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I think for most people step 2 is the longest and hardest. For me it seems to be step 3. Once we got out of debt my wife felt there were all kinds of home improvements that *needed* to be done!
That’s funny Dustin. But, hey, at least your debt is paid off. I always believe that you have to take life one day at a time. Just because you don’t make much progress one day, you can make up for it tomorrow.
I don’t think it is good to be obsessive about personal finance. You need to be conscious about your finances, but moderation is important.
Great synopsis of the plan. I love Dave Ramsey to the point that I wrote a post about why we need a Dave Ramsey type figure here in the UK. http://www.theleantimes.com/?p=667 Thanks for a clear, concise post.