7 Baby Steps to Financial Peace
1. First level emergency fund $1,000. Pay minimums on everything else.
2. Kill off personal debt except for the house
3. Save the rest of the emergency fund. 3-6 months of *expenses*.
4. Fully fund all pretax retirement accounts. Also at this time, review all insurance coverage. With a large emergency savings, you can now afford $500-$1000 deductibles.
5. College savings accounts for children (optional).
6. Pay off house as early as possible.
7. Build wealth! Mutual funds, real estate…wait for the great deals & pay cash. This step is the ‘rich getting richer’.
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