Baby Step 1: Save $1,000 for your starter emergency fund. I know what you’re thinking—Is $1,000 really enough? It is. This isn’t your forever emergency fund. It’s your starter fund to keep you from going deeper into debt while you attack Baby Step 2. When you’re focused, you’ll knock out debt fast, and then you can build a fully funded emergency fund. Stick to the plan—it works! | Dave Ramsey

Baby Step 1 is save $1,000 for your starter emergency fund. When I first started doing this, I did not have that as Baby Step 1. I had, “Shut up and get out of debt.” But then people would have an alternator blow on their car that was $350, and they didn't have any money because I told them to put everything on their debt. So they would sit there going, “I'm broke, and I got to get to work. Screw you, Dave, this doesn't work.” And they would quit. And so I went, okay, we got to have a little bit

When you’re working through the first three Baby Steps, you need to attack them with everything you’ve got. Save $1,000, pay off all your debt using the debt snowball, then build a fully funded emergency fund of 3 to 6 months of expenses. That kind of focus does not happen by accident. You need a plan for every dollar you make, which is why budgeting with EveryDollar matters. Once you do this, you’ll feel a level of freedom and peace you’ve never had before. No more stress, no more payments, jus