Dave Ramsey's Baby Steps

Last year I read Dave Ramsey's book "Financial Peace Revisited." He helped me understand the importance of a budget -- how to create and keep my own. He says:

"We view budgeting as if it is a form of torture. A correctly prepared budget is not a form of torture, nor is it so time consuming that you can't have Saturday night out. On the contrary, a proper, simple, written plan will actually give you more free time and money with which to enjoy it." (pg. 250)

I thought he did a great job explaining mutual funds, 401(k)s, Roth IRAs. He includes easy to use worksheets for a Monthly Cash Flow Plan, Recommended Percentages, Sample Allocated Spending Plan, Irregular Income Planning, Breakdown of Savings, The Debt Snowball, and others.

He gives "Baby Steps" to get out of debt and build wealth:

"Step One: $1,000.00 in an "Emergency Fund" ($500.00 if income under $20,000 per year)
Step Two: Pay-off all debt utilizing the "Debt Snowball" (except the house)
Step Three: 3-6 months expenses in savings
Step Four: Invest 15% of household income into Roth IRAs and pre-tax retirement
Step Five: College Funding
Step Six: Pay-off home early
Step Seven: Build Wealth! (Mutual Funds/Real Estate)"

There's something for everyone in this book -- no matter what stage or situation in life you find yourself at this time. He pretty much covers it all. You can check out your local library to see if they carry his book(s).