The Five Foundations of Finances

The five steps to financial success.

Save $500 in emergency fund

You will want to keep at least 500 dollars in emergency fund somewhere that you cannot get for everyday expenses. This is for actual emergencies only. Having the money in a separate bank account is suggested.

Get yourself out of debt.

Pay off any debts that you may have. Whether it is people or bank loans, you should get them paid as soon as possible to get out of debt. Pay off your credit card debt and car loans that you may have gradually.
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Pay cash for your car and college

Dave Ramsey suggests not taking out a loan for a car, but instead paying for it completely in cash. Paying in cash keeps you from building debt, and keeps up your net worth. It may be difficult, but it is possible and it will keep you out of debt.
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Build Wealth and Give

Invest plenty of money and, whether you do it quickly or slowly, build wealth. Staying out of debt is the best way to build wealth. Pay for everything in cash if possible and use credit cards extremely little if at all.
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