These baby steps are what his tips and plan are based around. The baby steps 1-3 are done one at a time and steps 4-6 are done together if you can. Then once you are to baby step 7, you are able to give generously!
This is the first and most important step to ANY financial plan.
A written budget is the foundation for everything that you do with your money.
A budget will tell you what you and can’t afford. It will tell you exactly where and how to spend your money.
Now, when I am talking about a budget, I mean a zero-based budget.
This is slightly different than just writing down your income and expenses and spending what is leftover.
A zero-based budget means budgeting every single dollar. It takes a little more time but it is worth the effort.
Author: Dave Ramsey