Well Dave Ramsey's baby steps go like that:
Dave Ramsey’s 7 Baby Steps
Step 1 – $1,000 to start an Emergency Fund: Before you even get started on the rest of the plan, you need to save up a little bit of cash just in case small emergencies happen. Things like flat tires, doctor visits, and flying somewhere for a funeral will usually be covered by this small emergency fund.
Step 2 – Pay off all debt using the Debt Snowball: You list your debts from smallest to largest. Pay the minimums on all of your debts. With any leftover money you may have you pay extra on your smallest debt until it is paid off. You then roll that amount over to the next smallest debt.
Step 3 – 3 to 6 months of expenses in savings: Save up 3-6 months of expenses in case of extreme misfortune like a job loss, illness or other long term problem.
Step 4 – Invest 15% of household income into Roth IRAs and pre-tax retirement: Save for your retirement.
Step 5 - College funding for children: After saving for retirement you can save for your children’s education and college expenses.
Step 6 – Pay off home early: Make extra payments on the mortgage to pay it off early.
Step 7 – Build wealth and give! (Invest in mutual funds and real estate): Continue building wealth through mutual funds and real estate, and give, give give!
PS: You can also get his book in your local library but honestly his book is great as an inspirational tool to get you fired up and put you on a right track. I think it will be a great investment in your future.
However the steps are summarized above.
The most important part - make a written budget, on paper (or computer) where every dollar has a name and a purpose. And strictly adhere to that budget. You do the budget in the beginning of every month (it shouldn't be static).
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