Once you pay off the smallest debt, you take the payment you were making on it along with all extra money and start paying off the next smallest debt.
In this part of the plan, you list your debts from the smallest balance to the largest and start throwing all the extra money you’ve got at the smallest debt until it’s gone (while still making minimum payments on the rest).
Your money power is in your income! Imagine how your current income would feel without any debt payments. Baby Step Two: Pay Off Debt with the Debt Snowball TMM starts you off with a small $1,000 fund to keep little emergencies at bay. Here’s the rundown of how it works: The Baby Steps Baby Step One: Save $1,000 as a Starter Emergency FundĬrazy expenses can pop up and in order to keep from going into more debt, it’s important to have an emergency fund to handle the unexpected.
This is all based around Dave Ramsey’s baby steps that will help you get out of debt, stay out of debt, and do great things with your money. The Total Money Makeover (TMM) is all about making over your financial situation. In this review of The Total Money Makeover, I’ll share what’s great about Dave Ramsey’s plan as well as the parts I disagree with.Ĭlick Here to Purchase The Total Money Makeover BUT, I don’t follow his advice to the letter. I am a fan of Dave Ramsey and his practical approach to handling money. The Total Money Makeover is his book that walks you through his entire seven-step process (a.k.a. You can’t talk about personal finance without mentioning Dave Ramsey, right? He’s got a whole empire dedicated to helping people get out of debt.
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