The Baby Steps, taught by Dave Ramsey, are the best I’ve seen. They are straight forward, easy to follow, and best of all…they work! I follow these steps pretty closely. Once again, however, I tailor it to fit your personality and unique situation.
The Baby Steps
Step 1: Get a starter emergency fund of $1000 in the bank
Step 2: Pay off all debt using the debt snowball
Step 3: Save an emergency fund of 3-6 months of expenses
Step 4: Put 15% into retirement
Step 5: Funding kid’s college
Step 6: Pay off the mortgage
Step 7: ENJOY!
*Steps 4-6 are often done simultaneously but are listed in order of priority.