HOW TO ACHIEVE FINANCIAL FREEDOM NOW (Dave Ramsey Baby Steps)

Ready to learn how to achieve financial freedom? Dave Ramsey Baby steps is a great place to start!

You might be familiar with Dave Ramsey, the American radio personality who gives excellent personal finance advice, author, mentor, and more. Man of many hats I must say! He has changed the lives of so many people. His mastermind concept ‘Dave Ramsey Baby Steps’ is highly valued and is an excellent system in which you can achieve financial success.

Firstly, I want you to remember that we all have to start somewhere and you are not alone. Your financial journey will be unique to you and may seem like it’s a lot, but, I want you to believe that financial freedom awaits you–if you’re willing to meet up. Make note of where you are now and where you want to be.

I’m a big fan of gaining financial freedom and Dave Ramsey Baby Steps is the best I’ve come across! No lies told. It makes perfect sense and I’m happy I can share it with you.

Let’s dive right in.

WAYS TO ACHIEVE FINANCIAL FREEDOM

1. Save $1000 in an emergency fund.

Emergency funds come in so handy as anything can happen in this life and you need money right away to offset balances. The unexpected can happen at any time, God forbid an accident, you lose your job, sickness, or even death. Having an emergency fund is one of Dave Ramsey’s saving tips.

Don’t be unprepared when it comes to these emergency situations. Dave Ramsey tells us to first save $1000 in an emergency fund. In order to achieve this, it is suggested that you give up something you usually spend (or waste) money on. For example, impulse shopping, eating out, or that cup of coffee you buy every day.

So guys, become so aware of those small purchases as they really add up! Also, you can also earn extra cash to reach your emergency fund goal.

2. Start paying debt (snowball).

After you’ve got $1000 in your emergency fund, your focus should be on paying off your debt, starting from the smallest to the largest. For example, start paying off those credit card bills, small loans, etc. However, while you’re paying the most money to your smallest debts, ensure that you still make small payments to your largest debts. This will clear the small debts much faster, making it easier to move on to the next.

It creates a snowball effect. At this point, you are attacking your debts with full force. As you finish paying off one debt, add that payment to the next.

I want you guys to understand that this step can take a long time depending on the amount of debt, your income, and other personal factors. Nevertheless, you got this. This step is crucial in learning how to achieve financial freedom. Keep focused.

HOW CAN I ACHIEVE FINANCIAL FREEDOM

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3. Save 3-6 months’ living expenses in your emergency fund.

Oh yes, you did it! Paid off those debts and going back to that emergency fund. Dave Ramsey suggests saving 3-6 months of living expenses. Again, life happens and we all need a backup plan. Having 6 months of living expenses (3 months minimum) can keep you on your feet in case something happens (ie losing your job). Here are some great money-saving tips!

4. Create a retirement fund.

So now, go ahead and invest 15% of your income into a retirement fund a/c or a tax-advantageous a/c, for example, a 401k or an IRA. You may choose to increase this amount as time goes by or if you start making extra money.

5. Create college funding for your kids.

Don’t have kids? that’s absolutely fine. You may choose to help your relatives or someone in need. If you do have kids, be sure to take your kids’ education very seriously and start a college fund. For young kids, you may consider a 529 college savings plan education savings account (ESA). This savings account is specific to college funding.

By doing this, their fund grows and they can leave college or university debt-free! It’s a setup for them to start achieving financial wealth right away.

DAVE RAMSEY STEPS TO FINANCIAL FREEDOM

6. Work on paying off the mortgage.

Did someone ask how to achieve financial freedom? It’s getting exciting.

Now, after you’ve gone through steps 1-5, it’s time to pay off your mortgage. It will take quite some time and interest won’t be your best friend. However, you’ll notice that things are better and you’ll reach your goal of financial freedom. No debt insight and oh, that peace of mind!

Let your imagination take you to a place where you are financially free. No debt, no mortgage, no financial hassle. Feels good right?

7. It’s time to give back.

Dave Ramsey suggests that when you’ve paid off your debts, funded your retirement and emergency fund, start a college account for kids, pay off the mortgage, have your money invested, it’s time to give back.

At this point, you will be financially free to help those in need, give back to charity, to your religious institutions, to a cause you’re passionate about, etc. Remember, giving is an act of love. When we give, it comes right back to us, one way or the other.

“No one has ever become poor by giving”

Ann Frank

I am currently making these baby steps to guys. I am at step 2 but I also have steps 4 and 5 in place already. By the way, steps 4 and 5 were created before I learned/started Dave Ramsey Baby steps, so no, I’m not a cheat (hehe!). That’s one reason I mentioned that your financial journey will be unique to you. But yeah, we’ve got this!

Wherever you are in your journey to financial freedom, take it one day at a time. I love these baby steps as it goes to show you don’t have to start running or doing a high jump in your journey. Baby steps are quite ok. Also, you may read some of Dave Ramsey’s book for beginners, and don’t forget to grab your freebie below.

Thanks so much for stopping by! please leave a comment as I always look forward to hearing from my readers. Come again soon.

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