Net Worth $-100,000 to $0

During Ramsey's Baby Step #2, we pay off all our debts besides our house mortgage.

In the Ramsey system they like to do the Debt Snowball.

They have you pay off the smallest debt first then put that money to work on the next one …. Until you are finished. It gives you small wins and rolls up the debt payoff nicely.

Baby Step 2 is another concept from Dave Ramsey and his organization.

During this step you pay off ALL your debts, except for your personal home loan.

This can be quite a long process, depending on how much you owe, but is the next best step.

I personally think #1 is getting all your debts lined up ... and pay the minimum payments (so you avoid late fees).

Baby Step 1 is a concept from the Ramsey world.

If you have absolutely no money saved, the first job is to build up a tiny pile of money for emergencies.

They suggest to begin with $1000.

Here is a cute 3 page pdf:

https://cdn.ramseysolutions.net/daveramsey.com/media/landing-pages/tools/downloads/baby-step-1-tracker.pdf