New Year, Fresh Start!

The New Year is a great time to start fresh and set goals!

You are often more driven and have a lot more energy to put towards your goals, whether they are big or small, at the start of the year.  The holidays may have set you back financially and perhaps you need a little help to get back on track. Use this “New Year, Fresh Start” mentality and follow Dave Ramsey’s 7 baby steps to achieve financial peace this year!

  1. Baby Step 1:  $1,000 in the bank for an Emergency Fund
    Sell stuff that you do not use/need
    Deliver pizzas…do whatever you have to get your Emergency Fund
  2. Baby Step 2: Pay off all debt! – Debt Snowball
    Start off with the smallest balance of debt and pay it off, minimum payments on everything else
    Once that debt is paid, use the amount you were paying to pay extra towards your next smallest debt
  3. Baby Step 3: 3 – 6 months of expenses in savings
    Figure out how much it costs for you to live each month
    Start saving for a full emergency fund of 3 to 6 months of expenses
  4. Baby Step 4: Invest 15% of household income into Roth IRA’s and pre-tax retirement
    This is the start of building long-term wealth
    Find the right option that is the best fit for you
  5. Baby Step 5: College fund for children
    All debt is paid off except the house
    Saving now will put you ahead in the future
  6. Baby Step 6: Pay off home early
    Extra money to be put towards the mortgage
    Consider refinancing based on your current mortgage
  7. Baby Step 7: Build up your wealth and start giving!
    No debts, no payments
    “Time to live and give like no one else!”

For more detailed information visit Dave Ramsey’s Website

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