Dave Ramsey's 7 Baby Steps (A CLEAR PATH TO FREEDOM)
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- เผยแพร่เมื่อ 25 มิ.ย. 2024
- DAVE RAMSEY BABY STEPS // Don't you just love a clear, step-by-step formula? Follow these 7 steps to financial peace.
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**BOOKS I RECOMMEND 📚**
I Will Teach You to Be Rich (hilarious how-to book on personal finance for millennials)
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The Little Book of Common Sense Investing (Jack Bogle's classic advice on index funds)
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InvestED (step-by-step, millennial-friendly advice on how to pick stocks like Warren Buffett)
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Unshakeable (this book = courage. blast ALL the fears & misconceptions you have about investing)
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Rich Dad Poor Dad (#1 selling personal finance book of all time... need I say more?)
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Think and Grow Rich (the ultimate book on money mindset and wealth consciousness)
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**MY FAVORITE MONEY TOOLS 🖤**
YNAB (I literally can't live without this budgeting app, so obsessed)
www.youneedabudget.com/?ref=Y...
Wise (like Venmo but for international currencies - I use this app a LOT for my life in Mexico)
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Ledger Nano S (crypto storage hardware wallet, because "Not Your Keys, Not Your Crypto"!):
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• Dave Ramsey's 7 Baby S...
I NEVER would’ve believed that, as a single mom, I’d find myself on baby step 6! I started to truly focus 3 years ago, and that’s when I found Dave Ramsey. I don’t own a home yet. I’m still saving up for a down payment. But my down will be right about 20% and then I calculate I will pay it off in 5 years. I have finance meetings with my sons every couple weeks and we are a team! I’ve been sharing your videos with my friends too :)
That’s awesome
Congratulations. Keep it going. Financial freedom is one of the best feelings you can have in your life.
Marybel as a single mom this was so inspiring. Thanks for sharing your testimony
Me too sista
I used to earn a min wage and rented a small room in a basement of a building the size of a walk in closet (Maybe it was a walk in closet). Now, I'm a multi-millionaire. You never know what life brings you but I never gave up.
Baby Step 1 - $1,000 to start an Emergency Fund
Baby Step 2 - Pay off all debt using the Debt Snowball
Baby Step 3 - 3 to 6 months of expenses in savings
Baby Step 4 - Invest 15% of household income into Roth IRAs and pre-tax retirement
Baby Step 5 - College funding for children
Baby Step 6 - Pay off home early
Baby Step 7 - Build wealth and give!
PS - Good to see you Rose!!
Thanks for sharing your notes... I still saw the vid and liked!
Um what if you didn’t have a mortgage to start with? At what step do you save for that?
@@msmaluu Dave Ramsey calls this "Baby Step 3B." After your emergency fund is fully funded, you can start a side savings fund for a house down payment.
@@caitox thank you!
@@caitox I couldn’t find it in the book but that what logically made sense
We went from BS1 to BS7 in 2020. Talk about life changing!!! So thankful for Dave Ramsey 💙
I've just realized I'm doing step 2 before step 1 and that's why I'm struggling with my finances when even small financial emergencies happen. Thank you for your videos! 🙌🏼
4-5-6 currently - After watching your video, I realize I need to re-prioritize my budgets and get back on track. Time to look into the every dollar app.
I LOVE Uncle Dave! About 3 more months to go on my $133k student loans thanks to him and I just graduated started paying them Nov 2019🙌🏾
How long did it take to pay down? I had 150k of student loans and paid off 6 in Jan/feb (18k). I used money in my savings since I had more than 6 months of an emergency fund. Once the pandemic hit I paused that to save money. I’ll be able to pay another lump sum when I feel comfortable with my job security/economy etc.... but I feel like it knocked my momentum off!!! I had a plan 😣
How did you do it?
Thank you so much for your tips! I really love how you give advice based on your experience.
I'm grateful to be in step 7 during a pandemic. It takes a load off knowing losing my job doesn't mean losing my home.
Precisely why I decided this year not to move to a bigger house. So glad I don't have a mortgage right now.
Hey, Rose. Started watching 11 months ago and I have started a finance channel partially due to you. Your videos have helped me start investing. Thanks
I got stuck going back and forth on steps 2 and 3 for many years because of job loss, medical bills, and car repairs. Now I’m finally on steps 4 and 6 but I’m in my mid 40’s so I feel like I have lots of catching up to do and no time to slow down yet.
Investing With Rose - Thank you for your reply Rose. But I really don’t trust crypto yet. I don’t know enough about it and it seems awfully risky. I will try to learn more about it but for now I’m investing mainly in etfs and some mutual funds.
During Covid I switched up the steps. I first saved six months of salary and then started paying off debt. I am now paying off debt now.
My guilty pleasure watching Rose and listening to financial advice at the same time!
This program help my family get out of debt and save for the emergency fund. When you think you would not need the fund, consider how many people have been without a job and waiting for EDD to start since March or April, or a businesses that can’t open for the same period of time.
Hi Rose,
In one of your recent videos, I requested you to recap/summarize your video content towards the end to help viewers retain more information.
I'm glad to see that you take viewer feedback seriously and continually improve your videos.
Thanks. I hope that you and your husband are doing well during these difficult times.
-Adi
Great video!
Rose I am on baby step #2 and it’s one I’ve really struggled with.
Fortunately I’ve recently tied the goal of moving abroad to it and am now practicing a no spend rule.
Thank you for your videos , they keep me focused and determined.
Bless you.
Excellent video! I’ve been on Baby Step 7 for the past 6 years! I’m 33 years old and I plan to achieve Financial Independence in 2-3 years and Retire Early in 3-5 years! Keep sharing your financial knowledge :)
Awesome!! This is great ❤
Im glad you are back active on TH-cam. Loved your content as always ☺️
Hello Rose and thank you for sharing this practical advice! I have our financial plan all mapped out and am on step 2. I’ve constantly bounced back and forth between 2-3-4 due to accumulating new debt and having to shift focus. In 3 years, I’ll be fully on step 6!
💪🏼💪🏼💪🏼
I've spent this entire year paying down $24,000 of credit card debt. I started seriously working on it in March, and continued on throughout the pandemic. I'm now down $15,000 and DR and Aja Dang were the inspirations for me to start. I just made a video like this one talking about DR's baby steps and analyzing if they really work. There is no doubt in my mind with what I've accomplished that they truly do work. Specifically with getting out of debt. I still have a little bit to go before I'm finished with baby step 2, but it's working and I'm doing it.
Dave Ramsey, the FIRE guru! Thanks for sharing those steps 🙌
This is how I got out of debt and he changed my life! Thank you Dave Ramsey and sharing his principles Rose!
I guess I'm on Step 4 still?
I just became debt FREEEEEEEE two Fridays ago! Even the mortgage is gone! It's an income property so the tenants paid most of it ;-)
These last two years I've been taking full advantage of my employer's $1-for-$1 match on up to 6% contributions to my 401k. And last year they started a "retention bonus" of an extra 2% if you work the entire year. So if I contribute 6% I get 8% (by the end of Q1). Does that count as 14%?
Sounds like an awesome employer! The 15% that dave recommends is what YOU contribute to retirement. It’s awesome that your employer is contributing so much, but why wouldn’t you add fuel to the fire and help get to your retirement number faster?
Nice. I’m only doing step 4 & 7. No debt and buying property for cash flow.
@@Albimar17 The reason an employer will match your 401K is often because they control what investments go in and out. They make money off of your contributions via investments and thus offer incentives for you to contribute (typically up to 6%). There's no conspiracy behind it, just economic science.
It's a great question; here's how I personally calculate it (everyone probably does it their own way, though:
I consider the employer match part of my gross income. Using simplest possible numbers, say I earn $100 and stash the $6 to get $8 worth of match.
In this case, I've "earned" $108 and should put 15% of THAT into retirement, which is $16.20 instead of $15.
Thankfully, the employer has put in $8 and I've already done $6, so I need to add $2.20
Best wishes.
NB: *gross* income is also *before* insurance, income & payroll deductions, etc. Use 15% of the WHOLE amount of your monthly salary.
@@Albimar17 Haha yep, that's a core principle of investing; accepting risk. There's also a lot of economic science behind investing so it doesn't just magically get multiplied. You have to be smart about investing, understanding where your money goes, and diversifying your portfolio. I agree that if you stick with just a 401K to retire with, a lot can backfire, but that's the reason behind diversification. It all depends on how you want to approach investments!
It is excellent to see this video. I have really enjoyed your videos to date. They have been extremely helpful to us on our financial journey.
So, we haven't been exactly following everything in order. But are doing what works for us. We are in our early 30s and looking ahead to how we go from here to retiring comfortably.
We have completed step 1.
Working on step 2. We still have auto loans on our cars (purchased used) and I have $8,900 in student loans. We also have three financial credit accounts with 0% interest. The student loans will be paid off in full early next year when we sell our condo and move into our new house. The auto loans are through a credit union. So interest rates are less than 3.5%. So we are overpaying to have them paid off in less than 3 years from the date of purchase. The consumer debt is being paid at a rate that will have it paid off before any interest starts up.
We have completed step 3 and have a 6 month emergency fund.
We are also doing step 4 by saving 20%+ monthly for retirement in our accounts using the waterfall approach of maxing out the accounts with tax benefits.
Also, we have locked in our term life insurance while younger to get the better rates.
So, we are getting there. No kids or plans for kids.... so there is one step we do not have to do.
Thank you, Rose. These videos are incredibly motivating and I love your calm approach. So many of the financial channels on TH-cam are hosted by speed freaks who I picture hanging out in bars and asking people their net worth. You seem very genuine and I believe that you have and will accomplish your goals, and will help me accomplish mine as well!
LOL so true X,D
💯
Stuff like this is why I continue to follow you Rose. Thank you so much!
Happy to see you posting, I love your videos, such wonderful advice!!
Paying off sizable debt is like watching the grass grow. Good job!
Hey Rose!! I’m glad you are here again.
Currently on step 1 😁 I’ve started really late ⏰ hoping to be in step 7 in 5 years from now 🙏
One of the most valuable aspects of Baby Step 5 is it’s contribution to generational wealth. I worked two jobs to pay cash for my children’s college in addition to our savings. Their not have student loans started them so far ahead of their peers that had student loan payments.
Very good video i was looking forward to this. Thank you. I"m at baby step 1 and almost there. I'm determined and got my wife to do the same! Now i know what all the steps are im looking forward with a positive mindset. thank you Rose, GREAT CONTENT!!
Thanks for sharing your experience with his baby steps Rose!
I should be on step 2, but my debt has 0% interest rate so I'm rather investing my money to outperform the debt interest. I think this step depends on how high your debt interest rate is. Great video! Your videos always help me stay motivated to achieve financial independence.
Very informative videos. I didn't realize I actually completed all these steps in that order years ago...but was a late aggressive investor too much I thought to understand. Videos like yours has boost my confidence in self investing, better late than never thanks!
Loved this. Thank you for sharing!
Super helpful- thank you for this! Also I think if you don't have much left in your student debt (and your payments have been deferred due to the CARES Act) it would be good to build up that emergency fund since uncertain times lie ahead during these covid times.
Thank you for giving us directions how to be better. Like what you said in another video, school and family didn’t teach me how to do all this. My wife and me are foreigners here in the US and our family here are also used to debts
Madame you’re a genius. The entire community thanks you. We don’t have the link to your PDF tutorial, please if you would. Thank you again as always
Loving this and taking notes! Thank you
I have done baby steps one and two. I am now on going in finishing baby step 3. Thank you for the advices you have given us. 😁
Exceptionally helpful video. I keep trying other TH-cam accounts and none beat yours for advice and explanations ty
Rose. I am swamped with work but I am so glad you are back from your break. I have been pouring through your videos and just taking in the content. HSA!! FTW!!! Thank you for breaking it down. I am going to get started on setting it up for end of year and build it. I have set up Roth and 529 accounts for my kids. Thank you for sharing your knowledge and winning attitude. BTW. I am now on a crusade to pay off my student loans. My goal is to pay them off in 24 months or less.
My goodness... My favorite video of yours for sure. Great info! (Okay, time to get serious about paying off the mortgage...)
We Love Dave! We don't always agree with him on credit/credit cards but we think his views on getting out of debt is top notch!
I love the way you explain things!
I really needed to hear this! Is there anything in that coffee cup?😅
It looks like tea. I see a little tag 🏷
Glad you're back! I'm currently working on step 3. Also I really want to know what you think about investing in courses (e. g. stock market for beginners, dropshipping etc.)
Awesome video! Thank you Rose for your amazing knowledge and guidance about managing finances!!
Hey Rose love your videos they are so informative and helpful keep up the good work. btw love your dimples
Glad to see you back Rose 🌹, a lot of people need your help with financial Cris nowadays, thanks you Rose 🌹 for all great contents 🌈🙏
@Investing With Rose I’m really appreciate that Rose 🌹
Another great video summary, Rose! Working on Baby Step Two.
I've done that baby steps, its good to get out of the debts, it works for me n my wife, but how to invest the i learn and do "Rose" way, im glad found your channel, thank you
To my great surprise, getting a job is the hardest part... Seriously, I did my Ph.D. in Chemistry and now, I keep hearing that I'm overqualified, or that I lack industry experience... The second major worry for me is that job security has been constantly decreasing, making planning to settle down increadibly risky. Moreover, in my parents' generation, everyone from the middle class could afford a house with a garden, but now, you need approximately 2 million EUR to get that near a city!
It slowly drives me nuts the combination of uncertainty, being forced to live in a place where I can't even go upright through a doorframe or stand straight under a shower, and am constantly bothered by my neighbours. I don't ask for a life in luxury, but I'm certainly not born to live like this!
Come to Indiana, houses here are cheap and we have many pharmaceutical companies and agriculture that would hire a chemist in a heartbeat. It's mostly small towns and lots of state parks. Be brave and make a big change in your life before life starts to change you.
Rose! so glad you did video on Dave. Let’s face it HE is the antidote to bad money management. You & Dave are my daily routine on everything money! Thk u!
❤️❤️❤️
Thank you Rose, Dave Ramsey is a great asset for us and instructing our youth in their preparation to become viable success in our community
I'm at step #7. Love your show.
I’m also taking baby steps to achieve my financial freedom! 🔥
Have emergency fund, no debt, full-size emergency fund, investing 15% of my income, now it’s time for me to save for my kid’s college. (But by the 2045, I think most of people won’t go to college that much.)
I'm with you. Tuition gouging is only encouraged by all these people thinking they need to save $100K + to send a kid through college. This is summed up in their simple (and evil) phrase "Expected Family Contribution". They need to start expecting a LOT less.
This was so helpful! Thank you😊
Baby Step 7 love it!
Your videos are so helpful! Thank you 💖
You do a real good job explaining.
Thank you, that was very useful! Seems like I do some of the steps already but not in the right order!
Im on step 6. Thanks for sharing this Rose :)
Thanks to all of your videos and Dave R. And some other ones, I'm now very close to paying off all of my debt, I'm investing 12% for retirement, and I'm close to having 6 months worth of my expenses!!
Excellent video! Thank you for keeping us financially savvy.
There is so much value in this video. Thank you.
I discovered dave ramsey two years ago and hes so amazing
Very fascinating, the whole psychology of savings, expenditures and money management. That momentum is the hardest thing to achieve. You got to get the root of why you spend and don't save. Really get to know yourself.
This is really well explained! 👌
Thank you so much. I was really turn between putting all my money towards my student loan or make home improvements such as a play room for the kids. Changing heating system to deprecate the 1st and second floor. Now that I watch this. I’m just going to throw all my extra cash to my 100k student loans!
Love the break down, the hardest thing to do is start the process.
The way you mentioned baby step 7 makes me want to go for it
Yes, I love Uncle Dave Ramsey!
Great video as usual. I share this channel as much as I can. Although I live in London it's always so applicable.
Thank you so much!!!
Thank you for this video.
Great content, I am currently working on step 6
Amazing! Thank you for making it so clear! I'm working on my emergency savings account and next I will pay off my mortgage early 🎉
Great content! I've heard a lot of positive things about this program - I'm currently on step 3! 0% student loans the last few months has. been wonderful as I started making triple payments and paid off 4/8 loans in the last 6 months!
ROSE ! We've missed you.
Omg yes welcome back Rose! You're the best :)
AGREEEEED!!! 🥳🥳🥳
Nice info. Curious..why are you holding a cup? Are doing a bit of marketing..we’re u gonna take a sip?
@@GroovJunki huh
@@xiloa23 u didn’t undersatand
Thnks for your content, Rose! This video finally put into words what I have been trying to plan this whole month for my life.
I’m currently on baby step 3 which will conclude in December, and then I’ll be immediately proceeding to step 4.
My goal is FIRE - I want to retire in 10 years before I turn 40 so I can enjoy my time with my future family - before I get old and crankier.
And I know I can do it, I just don’t have a clue on a career goal to make more money - figuring that out has been a lifetime struggle.
So I’m currently looking into real estate (bad choice during pandemic, I know) and generating a bunch of passive incomes. But I’m a bit stuck as how to start.
Any help is welcomed 😅
I absolutely love your videos👏🏾👏🏾👏🏾👏🏾👏🏾
thank you for these videos Rose, you have helped me learn alot about long term investing!
The step I disagree with is paying of a home early.
I would invest what extra you would put on the home. Your investments compound up while inflation slowly reduces the adjusted dollar amount down of your mortgage.
Look at it like this, my parent's first home in the town that I grew up in had a mortgage of $236 per month. They got that loan in the late 1960's. Now, imagine that they put money in the bank or CDs or stocks or a mix of all three for even fifteen of those years. Can you imagine seeing money grow in an investment while your mortgage effectively becomes cheaper every year by the inflation rate?
$236 in the late 60's was a bit of money, lower middle to middle class, back then. Imagine how little $236 felt by the 1980s or 1990s or late 1990s when the note was 30 years old and gone.
But, if you still want to pay off the home early, I would still save/invest outside of the extra home payments then when you have enough to pay it off all at once, then do it or don't. That is cheap insurance and a risk reducer. Think about plowing money into a home and then you have a medical crisis and can't work or you lose a job. What if you only have your several months of savings / emergency fund built up. You can't exactly borrow against your home to get at your asset unless you have a job. You could lose a home if you get behind on payments when you may have been paying ahead for several years, then BOOM you get evicted and it gets auctioned off...and not for full value if you cleaned it up and sold it yourself.
1. Save $1000 to have a starter Emergency Fund.
2. Pay off all debt (except mortgage.)
3. Save 3-6 months of expenses to have a full-sized Emergency Fund.
4. Invest 15% of gross income into retirement.
5. Save for your children's education (if you have kids.)
6. Pay off the mortgage early.
7. Build wealth/invest & give.
We are working on step 2: it is so frustrating how long this takes . But thanks for sharing, it is really helpful
Amazing Rose, you are such a breath of fresh air. Thanks for your tips.
Dear Rose, i start step 1, on the 20th oct. By today, 4th nov, i achieved it. Its not that we cannot, we just don't care. I m doing step 2, i m going to do it.....
This setup is great for your video.
I love Dave Ramsey but I’m loving you too Rose! I just found you recently and love it as I compare your view with Dave! I follow the baby steps religiously 😁. You should totally be a team member on the Ramsey show, #daveramsey #investingwithrose
So inspiring... I love you 🌹 Rose
Yesssss I love this
I commonly consider Dave Ramsey a financial "extremist" (Ex: credit cards) but his advice can be very useful for a large portion of the country!
He is pretty extreme with the no credit cards / no credit in general, but he also went completely bankrupt and managed to come back from it...these days, he can totally afford to not use credit.
Followers of Dave Ramsey expect you to follow the plan to the letter. If you don't have massive I would still take the match in my employers 401K.
Agreed; in our process we are largely following the baby steps, but once the debts are paid off, and the cash flow is stable, we will be cash flowing through a credit card for air miles. The card will not maintain a balance, but we need to go home more than once every 3 years... and man, now that the kids need plane seats it is expensive.
I think of it as going to an Alcoholics Anonymous meeting. A lot of people in the general population can have a drink or two and be fine however most people in that meeting should never touch alcohol again. It’s the same with credit some people can’t control the impulse to spend.
@@davidfunvideos nope! Dave says all the time their his rules. You can pick n choose to do all of them or none or some. Try again dave
Great advice, Dave Ramsey is definitely motivational
Great content thank you
Your way of explaining all this is very good. I have most of them done but don't forget to mention how important it is to have your spouse on the same page. Very...thank you.
I love your videos. Thank you.
I'm on Step #2 and I plan to get to step 7 in 1.5 years
Thank you!!
I'm currently working on saving $ for a rental property :) Great content, Rose! You inspired me to make a TH-cam channel