Paying Off Debt: Dave Ramsey's Baby Steps

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When my husband and I were first dating, we decided to tackle our finances before getting married. I mean, what’s more romantic than discussing student loans and credit card debt, right? Like many couples, we had debt weighing heavily on our minds—think Everest but with fewer views and more interest rates. That’s when our church ran some of Dave Ramsey’s Financial Peace University program classes. Little did we know this would be our financial “aha” moment, where we’d swap out candlelit dinners for budget spreadsheets.

As we dove into the Financial Peace University course, our mindset about money began to shift—kind of like when you realize that broccoli is good for you. The program not only provided us with the tools to manage our finances but also instilled a sense of accountability. We learned how to budget effectively, differentiate between needs and wants (Spoiler: that new gaming console isn’t a “need”), and ultimately prioritize our financial goals. The weekly meetings became our version of a reality TV show, where we could connect with others on similar journeys. Nothing like sharing your financial woes to bond over!

Reading Total Money Makeover was like a lightbulb moment for us—more illuminating than my husband’s bright ideas about “investing” in some new guitars. Ramsey’s straightforward approach to budgeting and debt reduction resonated deeply. He breaks down the process into manageable steps, which was exactly what we needed. The idea of a “debt snowball” became our guiding principle: we would focus on paying off our smallest debts first while making minimum payments on the larger ones. It felt like an adult version of “I’ll race you to the finish line”—except this time, the finish line is financial freedom, and the prize is not having to dodge collection calls.

The 7 Baby Steps

As we progressed, we embraced Dave Ramsey’s 7 Baby Steps, which provided us with a clear roadmap to financial freedom:

Save $1,000 for Your Starter Emergency Fund:
- This step was crucial for us. It helped create a financial cushion for unexpected expenses—like when my husband’s piece of junk car decided to break down again. Knowing we had a safety net allowed us to tackle our debts with more confidence (and less panic).
Pay Off All Debt (Except the House) Using the Debt Snowball:
- This was where we really dug in. We listed our debts from smallest to largest and committed to paying them off one by one. It felt like we were competing in a game show where the grand prize was a life free of debt. Every time we paid off a bill, it was like winning a mini lottery—minus the confetti but with plenty of high-fives!
Save 3 to 6 Months of Expenses in a Fully Funded Emergency Fund:
- Once we paid off our debt, we focused on building our emergency fund to cover several months’ worth of expenses. This gave us peace of mind, knowing we were prepared for any unforeseen circumstances—like a sump pump that goes bad during a particularly rainy summer.
Invest 15% of Household Income into Retirement:
- With our debts behind us, we started investing for our future. Watching our retirement savings grow felt great, like nurturing a money tree, except it didn’t involve actual gardening—thank goodness, because I have a black thumb.
Save for Your Children’s College Fund:
- As we look to the future, we want to be able to provide for our children’s education. We started exploring options for 529 plans and other investment vehicles. We want to be the cool parents who can say, “Sure, you can go to college—but you might have to settle for the one without a football team.”
Pay Off Your Home Early:
- With all our other debts paid off, we shifted our focus to our mortgage. Our goal is to pay off our house early, which will free us from the burden of monthly payments. We joke that we’ll have a party when we burn the mortgage papers—but only after double-checking the fire regulations.
Build Wealth and Give:
- Once we achieve our financial goals, we want to focus on building wealth and being generous. Giving back to our community is important to us, and we want to support causes we care about.

One of the most surprising aspects of this journey has been the emotional growth it has fostered. Following Dave Ramsey’s principles has encouraged us to communicate openly about money, which has strengthened our relationship. We’ve developed a newfound appreciation for living below our means and have even discovered the joy of saving up for things instead of relying on credit. It’s liberating to know we’re working toward financial stability together—plus, we no longer have to hide our online shopping sprees from each other!

Of course, the journey hasn’t always been easy. There have been moments of frustration, especially when unexpected expenses arise. But the tools and strategies we’ve learned from Ramsey’s program have equipped us to handle these challenges. We remind ourselves that this is a marathon, not a sprint. With each debt we eliminate, we can see the finish line getting closer—kind of like that elusive last piece of pizza we can finally treat ourselves to guilt-free.

As we continue on this path, we’re more motivated than ever. Our goal is to become completely debt-free, and we’re determined to reach it. Dave Ramsey’s Total Money Makeover has not only changed our approach to finances but has transformed our lives for the better. We can’t wait to see what the future holds as we embrace a life of financial peace—preferably with a side of laughter and maybe a new basement couch we can afford outright!