"Ramsey shot to prominence over the years via touting his " baby steps " program, which touts the seven main steps each individual should take to get out of debt, and eventually grow one's wealth. These start with building a $1,000 emergency starter fund, paying off all debt (except for one's house) using the debt snowball method, saving 3-6 months of expenses in an emergency fund,"
"But of all the pieces of Dave Ramsey advice out there, this is the one I think is most important for long-term investors planning for a long and beautiful retirement to consider. Live Below Your Means I'd argue that each of the baby steps listed above really come down to this one principle. Those who are able to consistently live below their means will have the ability to fund their emergency fund, pay down debt, and ultimately save and invest for a big, beautiful tomorrow."
Dave Ramsey is a polarizing figure in personal finance with large radio, podcast, and seminar audiences. He promotes a seven-step 'baby steps' program: a $1,000 starter emergency fund; paying off all debt except a mortgage via the debt snowball; saving three to six months of expenses; investing 15% of income for retirement; saving for children's college; paying off the home early; and building wealth and giving to charity. The central principle underlying those steps is living below one's means. Many Americans live paycheck to paycheck or borrow to service other loans, making disciplined execution of this principle difficult yet crucial for long-term retirement planning.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]