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What Are Dave Ramsey's Baby Steps? Baby Step 1: Save $1,000 for Your Starter Emergency Fund. ... Baby Step 2: Pay Off All Debt (Except the House) Using the Debt Snowball. ... Baby Step 3: Save 3?6 Months of Expenses in a Fully Funded Emergency Fund. ... Baby Step 4: Invest 15% of Your Household Income in Retirement.
Dave Ramsey's net worth has surpassed the $200 million mark. He didn't inherit it from a wealthy ancestor but made a fortune through his books, radio shows, financial seminars, and speaking engagements. He's also the founder and CEO of Ramsey Solutions, a company that offers financial education and products.
Ramsey had an estimated net worth of $55 million as of 2018.
Dave Ramsey has built a sizable following based on his no-nonsense approach to saving, investing and getting out of debt. Although his Baby Steps have helped millions of Americans along their own path to financial freedom, Ramsey himself has gotten wealthy through the process of delivering that information to others.
Here's how it works: Step 1: List your debts from smallest to largest regardless of interest rate. Step 2: Make minimum payments on all your debts except the smallest. Step 3: Pay as much as possible on your smallest debt. Step 4: Repeat until each debt is paid in full.