Dave Ramsey’s Baby Steps

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A brief guide to who Dave Ramsey is and the baby steps he recommends to get debt free.

If you know Dave Ramsey and his philosophy, you’ll know how many people he’s helped to get out of debt. But for the people who haven’t heard of him and are researching the best ways to get out of debt, I thought it would be helpful to give you a little ‘Dave’ background.

In a nutshell, Dave Ramsey is an American TV personality / financial guru who helps people get out of debt. He calls the steps he uses to get debt free ‘baby steps’.

There are 6 baby steps in Dave’s debt free plan, but that really is if you’re an American living in the US. A lot of people in the UK who follow Dave Ramsey choose to skip baby step 5. This step is aimed at saving for your children for college. Although this is a great thing to do, the funding in the UK for university is set up totally different to that of the US, so many people don’t do this.

If you wanted to though, you could easily do it for a house deposit or similar though.

So what are the Dave Ramsey UK baby steps?

I’ve written a more in-depth guide to each baby step, click the steps to read more:

  • Baby Step 0 – Get current on all your debts, so none are in arrears.
  • Baby Step 1– Start an emergency fund. Save £1000 in a fund for small emergencies.
  • Baby Step 2 – Pay of ALL debt apart from your house, using the Debt Snowball debt repayment method.
  • Baby Step 3 – Save 3-6 months worth of expenses.
  • Baby Step 4 – Invest 15% of household income form retirement.
  • Baby Step 5 – Save for children’s college (optional if in the UK)
  • Baby Step 6 – Pay off your home early through overpayments.

Questions about the baby steps? Leave me a comment below and I’ll do my best to help you!


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