Follow 7 Baby Steps to a ‘Total Money Makeover’

African American woman thinking about moneyStatistics show that American’s total credit card debt is estimated to be a whopping $905 billion dollars. The average household carries a balance of $15,654 in credit card debt.

With so much debt accumulating, it can seem impossible for one to be financially free in less than five years but Dave Ramsey gives seven baby steps to achieve financial freedom with his Total Money Makeover. At age 26, Dave Ramsey’s salary was over $250,000 a year. In a little over two and a half years later, Dave and his wife lost everything due to overwhelming debt.

After losing it all, Dave decided to become educated on how money really works, how he could take control of his and how he could gain confidence in handling it. At the end of his journey, Dave realized that he was the source of his money troubles and that he first had to develop his character in order to change how he spent his money.

In 1992, Dave formed Ramsey Solutions to help other people realize what he had realized so they too could experience financial freedom. Now, after writing six New York Times best-selling books he has freed over 5 million people from their financial bondage with his Total Money Makeover that includes his seven baby steps to financial peace.

1.Save $1,000 in an emergency fund


The emergency fund serves as a safety net for life’s unexpected events such as a