0.1: Commit to NEVER borrow $$$ EVER for ANYTHING other than possibly a house.
0.2: Talk with spouse and get him/her on the same page as you concerning finances.
0.3 Do a written budget.
0.4 Temporarily stop all retirement contributions.
0.5 Get current on all the basics (You MUST have Food, Utilities, Shelter, Basic Transportation).
0.6 Amputate "toys" (bikes, boats, ATV's etc) if they will keep you from completing the snowball within 12 months
0.7 Cut lifestyle (Cut CATV, Cellphone, Regular phone "extras", Internet, Eating out, etc) and/or take second job if $1000 EF will take more than 30-90 days. (depending on income)
0.8 Get current on ALL bills.
0.9 Pay full Tithe.
1.0 Save $1000 In baby EF.
1.1 Chop up CC's. (You have an EF now, no NEED to keep those CC's !!)
1.2 Get Health insurance NOW (chances of getting sick w/ major medical bills are larger than that of death), especially if you have children.
1.3 Get Life insurance NOW if you have considerable debt/your family couldn't make it financially if you died. Especially important if you have children !! Social Insecurity provides only a small amount of coverage if you have dependents.
1.4 Amputate cars that you can't pay off within 24 months (You have an EF to fix the "bondo buggy" if something should happen)
1.5 Consider raising insurance deductables to $500 or $1000 and dropping full coverage on paid for "bondo buggy" (You have an EF ya know)
1.6 Draw up a will.
1.7 Get Long-Term Disability insurance.
2.0 Do debt snowball, paying all your debts from lowest BALANCE to highest.
2.1: You can take your first vacation since finding Dave if you can pay cash for it (no using the EF !!!)
3.0 Save 3-6 months EXPENSES in EF.
3.1 Start car replacement fund.
3.2 Save up 20% for home purchase OR pay down existing mortgage to the point you can drop PMI.
3.3 Start furniture or other non-essential stuff replacement fund.
3.4 Move up in car if you still feel the need to (must pay cash for it)
4.0 Start contributing 15% of your paycheck to retirement.
5.0 Save for kids college fund.
6.0 Pay off house early.
7.0 Live like no one else since you have lived like no one else. -- Give & Build Wealth.
See Also: Dave Ramsey