The 5 Foundations
Save a $500 Emergency Fund
Expect for emergencies to happen. Be prepared for them financially by setting money aside for when they occur. Keep it in a separate savings account and only touch it during an emergency. This is a very important step to keeping your feet when financial emergencies happen.
Get Out of Debt
Get yourself out of debt as quickly as possible. Once you have your emergency fund saved, this foundation should be your biggest priority. You can not successfully build wealth if you can not successfully get out of debt. This step is very important for your future and well being. Not to mention the stress it will cause.
Pay Cash for Your Car
Paying cash for your car is going to be an important step, but focus on the first two foundations first. Using a sinking fund to save for your car and paying cash will be beneficial because you won't have monthly payments on it, as well as paying interest to whoever loaned you the money.
Pay Cash for College
Paying cash for college may seem like an ungodly request, but it is possible. You'll have to live a very tight budget, but in the end, you won't be paying off very hefty student loans for many years like most Americans. Saving this money will help you to build wealth and give back. It will also teach you good saving habits, as well as budgeting.
Build Wealth and Give
This foundation is the last foundation because this one is helping your worth grow. Once you have all big expenses paid for, such as a house, college, and a car, this is the money you can stow away and watch it grow. This is your money, the money you have earned, the money you owe to no one but yourself.