Master Your Money - Dave Ramsey's 7 Baby Step

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Dave Ramsey's "Baby Steps" are a series of financial milestones designed to help individuals get out of debt, build wealth, and achieve financial peace. Here’s a breakdown of the seven steps:

Baby Step 1: Save $1,000 for Your Starter Emergency Fund

This is a small emergency fund to cover unexpected expenses while you’re working on paying off debt.
Baby Step 2: Pay Off All Debt (Except the House) Using the Debt Snowball

List your debts from smallest to largest, regardless of interest rate. Pay off the smallest one first while making minimum payments on the others. Then, move to the next smallest, rolling the amount you paid from the first debt into the next one.
Baby Step 3: Save 3–6 Months of Expenses in a Fully Funded Emergency Fund

Once you’re debt-free (except for your mortgage), build a fully funded emergency fund to cover 3-6 months of living expenses.
Baby Step 4: Invest 15% of Your Household Income in Retirement

Start investing 15% of your gross income into retirement accounts, such as 401(k)s and IRAs.
Baby Step 5: Save for Your Children’s College Fund

Begin saving for your children’s education through tax-favored plans like a 529 plan or an ESA (Education Savings Account).
Baby Step 6: Pay Off Your Home Early

Focus on paying off your mortgage as quickly as possible.
Baby Step 7: Build Wealth and Give

With all debts paid and your financial foundation solid, continue to build wealth, invest wisely, and give generously to causes you care about.
These steps are meant to be followed in order, with each step building on the previous one.