David Ramsey's Five Foundations
The Second Foundation
Dave Ramsey's second foundation is to get out of debt. Dave Ramsey tells us that debt is detrimental to the process of building wealth. You can get out of debt by paying off any current loans and credit card payments. To avoid any future debt, make sure to save money from your current source of income to make payments for cars, houses, and college instead of taking on a loan. Also make sure to avoid using credit cards
The Third Foundation
Dave Ramsey's third foundation is to pay cash for your car. To save the money for a car purchase a smart step to take would be to create a sinking fund account. Basically, you save a part of the value for your next car and then use the value of your old car to help pay for part of your new car.