Baby Steps 4, 5, 6, & 7 Lesson 4
- Baby Step 4 is to invest 15% of your household income in retirement.
- Baby Step 5 is to save for your children’s college fund.
- Baby Step 6 is to pay off your home early. You’ll do Baby Steps 4–6 in order, but at the same time.
- Then, Baby Step 7 is where you’ll have the most fun!
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Action Items
Schedule a budget committee meeting
You’re coming up on your next budgeting cycle! Remember, it takes three months to get the budget right, so stick with it. If you’re married, schedule your next Budget Committee Meeting. Singles, don’t forget to review your budget with your accountability partner. And keep tracking your transactions!
Make sure you're in top of your budget
When you hold money with an open hand—not a clenched fist—you’re able to give generously and receive graciously. No matter which Baby Step you’re on, giving is your priority, whether that’s a tithe to your church or contributions to charity.
Know your net worth
Your net worth is what you own (assets) minus what you owe (liabilities). It’s an overall measure of wealth. Use the Net Worth Calculator in Ramsey+ to see where you stand today!
Contact a SmartVestor Pro
If you’re done with Baby Step 3, check out our list of SmartVestor Pros near you in Ramsey+. These investing professionals will help you invest the right way for you and learn how to save for your kids’ college.
Read "In Order, but at the same time." on Page 78 of your workbook FPU Workbook
The Baby Steps work when you do them in order. But Baby Steps 4–6 are done at the same time! We know that sounds confusing, but this Deep Dive tells you exactly what we mean.
Frequently Asked Questions
Plug in a few values into the Ramsey+ Investment Calculator to learn more!