EveryDollar
This easy-to-use budgeting app is key to helping you stack your emergency fund and track your debt progress.
You can take control of your money! Dave Ramsey’s 7 Baby Steps will show you how to save for emergencies, pay off all your debt for good, and build wealth. It’s not a fairy tale. It works every single time!
Step 1: Save $1,000 for your starter emergency fund.
Step 2: Pay off all debt (except the house) using the debt snowball.
Step 3: Save 3–6 months of expenses in a fully funded emergency fund.
Step 4: Invest 15% of your household income in retirement.
Step 5: Save for your children’s college fund.
Step 6: Pay off your home early.
Step 7: Build wealth and give.
Join the Millions Who Have Transformed Their Money
We don’t believe in managing debt—we help you get rid of it. And for over 30 years, families have used Dave Ramsey’s 7 Baby Steps to ditch debt and build lasting wealth.
Baby Step 1
Living paycheck to paycheck without a plan for your money will trap you in a never-ending cycle of money stress. It’s time to take control—and the first step is saving $1,000 for a starter emergency fund.
Why? Because life happens.
A baseball shatters your window. Your car tire goes flat. Without cash in the bank, moments like this can turn into debt nightmares. Not sure how to tackle that first $1,000? Take our free assessment to get started with the Baby Steps and learn the fastest way to start saving money.
Baby Step 2
Next, it’s time to get intense about paying off debt. Get rid of your credit cards and loans (except the mortgage) using the debt snowball method.
“Buy now, pay later” is a scam and keeps you broke. It’s time to get debt out of your life! And pause any investing for now—you’ll come back to that later.
List your debts from smallest to largest, and make minimum payments on everything but the smallest one—attack that one with intensity. When it’s paid off, roll that payment into the next debt and repeat until you’re debt-free.
No matter wht type of debt you have, we’ve got the tools to help you get rid of it for good. Find out how to start paying off your debt now.
You’ve got this!
Baby Step 3
Picture this: You made your last debt payment. You’re debt-free!
And yes, you’re celebrating because every dime you earn is now yours. It’s time to make sure you never shackle yourself to debt again—by saving a fully funded emergency fund of 3–6 months of expenses as a safety net.
Temporary job loss? Covered. AC dies in July? No sweat. Money stress doesn’t stand a chance when you’re debt-free and have a big rainy day fund. Find out how much you need to save.
Baby Step 4
If you’ve been worried about when we’d talk about saving for retirement, this step is for you. With zero debt and a cushy emergency fund, you can start investing 15% of your income for retirement.
The most important thing to remember—there’s no such thing as getting rich quick. Slow and steady wins the race.
Talk with a pro who can help you with your plan to reach your retirement goals.
Baby Step 5
It's time to start stacking cash for your kids’ college fund.
But why do this after you start saving for retirement? Because your kids might not go to college, but you’ll definitely retire. Prioritizing your future isn’t selfish—it’s smart.
Once your retirement is on track, open an Education Savings Account (ESA) or 529 college savings fund. And by tapping into grants, scholarships and a savings plan, you and your future graduates won’t have to borrow a dime.
Baby Step 6
Imagine how it would feel for your home to be 100% yours—no mortgage payments, just freedom.
Baby Step 6 is where you focus on paying off your home early. It’s the last step on your way to becoming a Baby Steps Millionaire.
That’s why we say, “Live like no one else so later you can live and give like no one else.” You’re almost there!
Reach Your Goals Faster
Baby Step 7
This is the dream—total financial peace!
Your home is paid off, you have zero debt, and your money is working for you. The grass in your front yard even feels different because you own every blade of it! Your hard work has put you on track to leave a legacy for your family and give generously.
Millions of ordinary people have built extraordinary lives by following the 7 Baby Steps. You can do it too!
Discover how anyone can live and give like no one else—including you!
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FAQs
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What can I do if my spouse isn’t on board with the 7 Baby Steps?
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It’s tough when you’re fired up about getting out of debt, but your spouse isn’t on board. Don’t nag or shame them—money fights won’t solve money problems. Instead, lead by example. Show them how small wins can make a big difference, and focus on open, honest conversations. Marriage is a team effort, and when you work together, you win together. Need help? Check out this article: What to Do When Spouses Don’t Agree on Money.
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Can I buy my first house when I am paying off debt?
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Buying a home is exciting, but doing it while still in debt? That’s a recipe for financial stress. Before you take on a mortgage, set yourself up for success: Pay off all your debt and build a fully funded emergency fund. That way, you’re not just buying a house—you’re buying peace of mind. Ready to do it the right way? Check out these tips for first-time home buyers: First-Time Home Buyer Tips.
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When is the best time to get life insurance during the Baby Steps?
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The best time to get life insurance is right now—before you actually need it. If you have a spouse, kids or anyone who depends on your income, don’t wait. The younger and healthier you are, the cheaper your policy will be. Life insurance isn’t for you—it’s for the people you love. Protect their future today. Need help getting started? Check out this article: How to Buy Life Insurance.
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At what Baby Step do I need to have a will in place?
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You can create a will at any step. The sooner, the better! A will is for anyone who wants to protect their family and make sure their wishes are followed. Without one, the state decides what happens to your stuff, your kids and even your legacy. A will gives you control, brings peace of mind, and makes life easier for your loved ones. Don’t put it off—get it done today! Here’s how: Do I Need a Will?