This is optimal finance daily episode 1370.

Dave Ramsey's baby steps explained by Jeff Rose of Good Financial Sense.

And I'm your host and personal finance enthusiast, Diana Merriam.

This is the show where I narrate posts from thought leaders in personal finance

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But for now let's get right to it and continue optimizing your life. Life. Since of these steps as a unit and explain why the order is essential.

Hopefully these steps can help you create a focused life plan for your finances,

regardless of your age or financial well-being.

First, the baby steps.

Step 1, $1,000 in an emergency fund.

Step 2, pay off all debt except the house utilizing the debt snowball.

Step 3, 3 to 6 months of savings in a fully funded emergency fund.

Step 4, invest 15% of your household income into Roth

IRAs and pre-tax retirement plans. Step five, college funding.

Step six, pay off your home early.

Step seven, build wealth and give.

The power of focus.

Dave's premise with the baby steps is that people can accomplish great things

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