Are you working on your own debt free journey?  Are you doing your best to make your past bad financial decisions go away?  You have likely heard about Dave Ramsey and his “baby steps.” I am not affiliated with Dave Ramsey, but I am a fan of is and have been working on putting his principles to use with my own finances.

If you are curious enough to look into it, here is a short explanation of the baby steps that his followers live by and why they may (or may not) work for you:

• Step 0: Take care of your four walls.  This means to bring your rent or mortgage current along with your utility bills.  This means power, water, sewer, etc. This is not your cable and credit cards.
• Step 1: Build up an emergency fund of $1,000.
• Step 2: Pay off all of your debt excluding your home.
• Step 3: Build up a fully funded emergency fund (typically three to six months of expenses).
• Step 4: Invest 15% of your income into retirement plans.
• Step 5: Work on building a college fund for your children.
• Step 6: Time to Pay off your house!
• Step 7: Build wealth and give.

Breaking these steps down in this form is a great way to minimize how overwhelmed you can become by the entire process.  It is easier to focus on one thing at a time, making your success more likely.

Do any of you follow Dave Ramsey’s plan?  I would love to hear about any of you who have found success utilizing his budgeting tips and programs.  Or, have you found a different direction that has proven successful for you?

Debt payoff is not a one-size-fits-all situation.  What works great for one person is likely not going to work exactly the same for someone else.  This is why I love hearing about everyone’s experiences in their budgeting, saving, investing and debt payoff journeys.