If you have attended our ‘Discover Personal Financial Freedom’ programme, you have about the Baby Steps. Designed by American personal finance expert, Dave Ramsey, it is a simple plan that leads you to financial freedom one step at time.
Oftentimes we do not make financial progress, no matter how hard we work at it because we are trying to do many things at the same time. Imagine you are trying to save £200 a month but paying £350 a month in debt at the same time? Or you put £5,000 in a 5-year investment, only to need that money 6 months later because of an emergency and you have no emergency fund, you have to cash-in your investment at a loss. That’s much like taking one step forward and then two backwards. You won’t make much progress that way
Taking ‘Baby Steps’ on the other hand helps you get traction in your finances. It amplifies your progress because you focus your attention, energy and resources on doing one thing at a time.
So here is a quick reminder of the Baby Steps:
- Step 1: Build a Starter Emergency Fund of £1,000
- Step 2: Snowball all your debts except the mortgage
- Step 3: Build Full Emergency Fund of 3 to 6 Months Expenses
- Step 4 Invest 15 % Income into Retirement Savings
- Step 5: Invest for Children’s Higher Education
- Step 6: Pay off Your Home Early
- Step 7: Build Wealth and Give like no one else
However, just knowing the Baby Step won’t help you that much. You have to work it! We are keen to hear from you; where are you on the Baby Step? Have you started yet? Have you made any progress? Did you get your spouse on board?
Some people have started sharing their stories!. (Please read Angela’s story on the right) We love stories like Angela’s because it proves that this programme WORKS! We would very much like to hear from you. Share your story to encourage someone else!