Dave Ramsey's Baby Steps:

*Step One: $1,000 Emergency Fund
*Step Two: Pay off all Debt
*Step Three: Three to Six Months worth of expenses saved
*Step Four: Retirement Allocation Plans
*Step Five: College Funding
*Step Six: Completely Mortgage/Debt Free
*Step Seven: Build Wealth, make my money work for me.

Mine:

*Step One: Freedom Account Fund. This is the place where I add money to every month to pay for things like taxes, insurance, doctors/dentists visits and have my emergency money. I also keep cash stashed at home.

*Step Two: Pay off Debt: Oh, I have been working on this diligently. I started last September with $23,596.64 and am now down to $9,292.54 one year later. I have paid off $14,304.10. Wow, that is almost half of my income that went to debt. I really haven't done the snowball method. I have just paid what I could each month and used my income tax return and any extra amount of money I received from selling stuff, rebates, etc. to pay those debts down.

*Step Three: 3-6 Months Savings: Well, if I could pay off over $14,000 in debt in a year. I should be able to accomplish some savings once my debt is gone. I do have an ING account that automatically gets a deposit every month.

*Step Four: Retirement: This is a hard one for me. I don't trust other people with my money; and the more money you have saved making interest, the more taxes one has to pay. Of course, I can't predict the future, but I would like to work as long as possible making a living, instead of living off what I have saved or should be coming to me from social security. If I have no debts, I shouldn't need a lot. I will have to re-visit this one in the near future.

*Step Five: College: This has been accomplished. Each child has/had $20,000 in a savings account for college. One has graduated, one is just starting and my youngest will get his money in three years.

*Step Six: No Mortgage: This is in the works. I re-financed my mortgage from a 30 year fixed at 6.75% interest rate to a 15 year fixed at 4.5% interest rate, saving me a ton of interest, which I have been adding extra money to. My goal is to have it paid off in 10 to 12 years, when I am somewhere between 58-60 years old.

*Step Seven: Build Wealth: I think this is along the lines of Retirement. One should be able to live off their retirement, which means I should have built wealth over the years to make my money work for me. But this is something that I think I could get creative in -in different areas. Any suggestions.

So that is my plan in relation to Dave's Plan.