You will want to build your emergency fund as quickly as possible. This will be used to cover unexpected expenses that pop up.  (Fixing the car, minor home repair, etc.)  You can get started by selling your things online, having a garage sale and focusing on your budget.

List all of your debts from smallest to largest. You can find a debt snowball calculator here. The smallest debt is going to be your number one priority.

You’ll make minimum payments on everything but the smallest one. Don’t worry about interest rates. We are more focused on having as many wins, as quickly as possible. Once you pay off that first debt, add what you were paying towards it to the second-smallest debt. This creates a debt snowball. Using this strategy, families making an average household income have paid off incredible amounts of debt. This creates what is called Gazelle Intensity.

This step is all about building your emergency fund that will cover life’s unexpected expenses. How do you determine whether to put away three months or six months of expenses? A typical financial planner will tell you, put away three months of living expenses if you’re a two-income household AND both job situations are very stable. You may consider going higher than three months if you are single, only one spouse works and/or your job situation seems unstable.

This step is all about building wealth long term. With no payments, other than a house payment, and a fully funded emergency fund, executing this step should be straightforward. Between your 401(k), Roth IRA and Traditional IRA, you have a lot of options. Take 15% of your gross household income and invest it first into your company 401(K) plan, up to their match. Then use a Roth IRA to complete the step. If your company doesn't offer a retirement plan, or match your contributions, then go straight to the Roth IRA. Certain circumstances may require a customized approach. Therefore, it is wise to obtain good advice from your SmartVestor Pro.

This step is not applicable for everyone. However, if you do have children, you don’t want college to sneak up on you. Two smart ways to save for your child’s college includes the 529 college savings plan or Coverdell ESA’s. They are both tax-advantaged savings vehicles that let an adult custodian, such as a parent or grandparent, save money for their children’s college expenses by investing them in mutual funds.

There is only one debt standing in the way of freedom from all debt. That is paying off your home mortgage. Just imagine how different your grass will feel when you own it and the bank does not! Millions of Dave’s followers have tasted this sweet success, and you can as well. Stay focused in this step, and don’t forget to celebrate the mini victories such as, getting the mortgage under $100K, under $10K, etc.

This is the last step and by far the most fun! It took a lot of hard work and dedication to get here…  No payments. Retirement is on track. The kids’ college is saved for. You can do whatever you want! We meet many families that have achieved this step, and there is a freedom, in this moment, that is indescribable. That single person, in your church, that can’t pay their electric bill – what if you could pay that bill a year ahead for them? The young couple at the restaurant that looks overwhelmed and defeated – what if you could buy their dinner and not even think twice about it? Proverbs 21:5 says, “The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.” You had a plan, you were certainly diligent, now you can enjoy the abundance of your labor.