Today, we're tackling a polarizing topic - Dave Ramsey's Baby Steps! We're looking at how each step can be applied to your personal life, as well as your business.
Episode Highlights:
- Dave Ramsey's 7 Baby Steps:
- Step 1: Save $1,000 for a starter emergency fund
- Step 2: Pay off all debt using the debt snowball (with the exception of your house)
- Step 3: Save 3-6 months of expenses in a fully funded emergency fund
- Step 4: Invest 15% of your household income into retirement
- Step 5: Save for your children's college fund
- Step 6: Pay off your home early
- Step 7: Build wealth and give
- How to apply each step to your business:
- Step 1: Having at least $1,000 set aside in a separate account could help during a slow period, to pay an unexpected bill, etc.
- Step 2: Start with paying off your lowest debt first (not the lowest interest rate), to pay off your credit cards or open loans
- Step 3: Calculate how much your expenses are for a 3-6 month period to keep your business afloat - don't forget about payroll!
- Step 4: Taking extra draws from the business and investing into your retirement will help you better prepare for your future
- Step 5: This step can be used to offer extra benefits to your employees, such as PTO or a 401K match
- Step 6: If you decide to purchase an office space instead of lease, focus on increasing your payments in order to reap the benefits of ownership early
- Step 7: Watch your profits grow and give back to your community!
Links & Resources:
GreenOak Accounting
Therapy For Your Money Podcast
Dave Ramsey's 7 Baby Steps