Dave Ramsey's 7 Baby Steps, Explained Simply

By Gino DiPierro, 2026-10-07

The Baby Steps work because they tell you exactly what to focus on right now, and what to ignore until later.

Baby Step 1: Save $1,000 for a starter emergency fund

Baby Step 2: Pay off all debt (except the house) using the debt snowball

Baby Step 3: Save 3 to 6 months of expenses in a fully funded emergency fund

Baby Step 4: Invest 15% of your household income for retirement

Baby Step 5: Save for your children's college fund

Baby Step 6: Pay off your home early

Baby Step 7: Build wealth and give

Where are you?

Most people I coach are on Baby Step 1 or 2. That's okay. Focus on the step you're on, finish it, then move to the next one.

Book a free 30-minute discovery call, open 7 days a week, 9 AM to 5 PM Eastern. Email [email protected].

Gino DiPierro completed Ramsey Solutions Financial Coach Master Training. Completion does not create an employment or agency relationship with Ramsey Solutions or its affiliates, is not a license or credential to give legal, tax, accounting, investment or other professional services, and is not an endorsement or recommendation by Dave Ramsey. Financial coaching is education and accountability, not investment advice.