The 4 Main Baby Steps
1: One Thousand dollars in an emergency fund
2: Debt snow ball ( Pay off all debt)
3: 3-6 months of living expenses in savings
4:15% of your income invested in a Roth IRA
( One through four is the main topic of chapter one.)
Baby Step 1: Thousand Dollars In Emergency Fund
You need to put it where you can forget about it, and will not use it for a non emergency, do it! Sometimes this baby-step can be the easiest because its only $1000 to save for,
Sometimes this baby-step can be the hardest because it means you have to choose to take the steps, and it means you have to change and actually encourage your self to do these rules.
Baby Step 2: Debt Snow Ball
This is important because you have get rid of paying interest on debt so you can move on and not get in more debt.
Baby Step 3: 3-6 month of living expenses in savings
If you get laid off you need to have a back up plan (savings), it is so important to do it like this because something bad will always happen, Murphy's Law... it just depends if you are ready for it our not to keep your house and use electricity and water without having to worry about bad things that might happen.