In this week, we're going to get more into the overall plan - The Baby Steps!
Dave Ramsey teaches The Baby Steps for personal finance as follows:
Save a Starter Emergency fund of $1000.
Get out of debt as fast as you can - with gazelle intensity (as he calls it).
Build up your starter emergency fund to 3-6 months of household expenses.
a. Save for a down payment on a home - if you don’t already own one.
Begin putting away 15% of your annual household income into retirement.
Save for your children’s college funds.
Payoff your mortgage.
- Build wealth and give.
While my husband and I do follow these personally - and with great success - I realized that replicating it for my business would be beneficial, but it's not a direct replication. So here is my revision of The Baby Steps... for business:
Save a starter Emergency Fund of 1 month of overhead expenses.
Get out of debt as fast as you can.
Ensure that your business is paying you a reasonable salary.
Build up your emergency fund to 3-6 months of overhead expenses.
Save for your business goals.
- Build wealth in your business and give.
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Start working through the Baby Steps (you can do this in your business and personal if you’d like!). Some people realize that once they reallocate their money around and work through them, they can blast right through several of the steps right away. Others get a beautiful opportunity to learn and visualize the situation that they are actually in - and it isn’t always pretty. Sometimes it’s a little dose of humble pie!