Step four is to invest 15% of your income into retirement accounts. By setting aside three to six months’ worth of living expenses in an emergency fund, you’ll have a safety net to fall back on in case of job loss, illness, or other unforeseen circumstances.

Life is unpredictable, and unexpected expenses can derail even the most well-crafted financial plan.

Step three is to build an emergency fund. By focusing on one debt at a time and paying it off in full, you’ll free up more money to put towards your other debts and start making real progress towards your financial goals. This approach, known as the debt snowball, helps you build momentum and stay motivated as you work towards becoming debt-free. Step two is to pay off all of your debts, starting with the smallest balance first. By setting up a budget and sticking to it, you’ll be able to identify areas where you’re overspending and make adjustments to ensure that your money is being used wisely. This may seem like a no-brainer, but many people overlook the importance of tracking their spending and creating a plan for their money. Step one of the Total Money Makeover is to create a budget. His proven seven-step plan has helped millions of people take control of their finances and live the life they’ve always dreamed of. In this comprehensive guide, Ramsey provides practical and actionable advice on how to get out of debt, build wealth, and secure your financial future. Are you tired of living paycheck to paycheck? Do you want to learn how to make money and achieve financial freedom? Look no further than ‘The Total Money Makeover’ by Dave Ramsey.

The total money makeover steps