My comment
You need good incomes to go through these 7 steps
Dave Ramsey has these 7 steps for anyone who have debts to become financially fit - Live like no one else because you're free.
0. Live below your means - no more "toys"; cut down on your lifestyle; get health & life insurances, especially if you have children.
1. Build beginner emergency fund — let's say $1,000 (as fast as you can).
2. Debt snowball — eliminate all debts from small to large, except the house.
Other financial planners may suggest different order of debts to eliminate; such as from high to low interest rates.
3. Build full emergency fund — 3 to 6 months of living expenses.
If you use debt to cover emergencies, you have backtracked!
4. Invest 15% of your income — 401(k), follow by Roth IRA.
5. Fund your child's college education — 529 savings plan.
6. Pay off the mortgage early.
Without a house payment you will have most control of your greatest wealth-building tool —your income.
7. Build wealth — with mutual funds & real estate.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment