All About Money

Personal Finance

Baby Steps

Money is very important in our daily, but we always face problems that are unexpected that is called a Murphy's law, anything that can go wrong will. You can follow these baby steps to help you. Baby step one is put $1,000 in an emergency fund if you make under 20k a year then put $500 in an emergency fund. Baby step two is paying of all debt. Baby step three is put three to six months expenses into savings that would be around $10,000-15,000. Baby step four is to invest 15% of your house hold income to IRAs and pre-tax retirement plans. Baby step five is to pay off college funding. Baby step six is to pay off your home early. The last baby step is to build wealth and give. If u follow these step u will have success in the future. Remember if you take money out of your emergency fund then you will have to go back to whatever baby step you were on.


Saving must become a priority, always pay yourself first. Saving money is about emotion and contentment. Emotion means to get excited to save. Contentment is to be content with what you have. Money is amoral. You should save your money for three basic reasons. One emergency fund, two purchases, three wealth building. Money market is an advanced way to say savings account. 90 day same as cash is a way to pay for purchases if you don't have the money right that minute and you want to bring it home that day. You have to pay it off in 90 days though 87% don't pay it off if you don't pay it off in 90 days you have to pay interest.


The correct order of priorities for your money is give, save, pay bills. Keys to saving money are making savings a habit and a priority, discipline, and focus. Reasons to save are for purchases, paying off debt, and wealth building.