Fundrise Flagship Fund
Buy real estate through Fundrise's $1 billion private fund
Baby Step 1: Save $1,000 for your starter emergency fund
An emergency fund is a savings buffer set aside for unexpected expenses like home or car repairs – so you can avoid going into debt in case of an unplanned financial situation.
“Without an emergency fund, you are one car repair or medical bill away from financial disaster,” Ramsey noted.
But starting an emergency fund doesn't have to be overwhelming.
One of the easiest ways to kickstart your emergency fund is by automatically saving your spare change with Acorns. When you make everyday purchases, Acorns rounds up the price to the nearest dollar and invests the difference for you in a smart investment portfolio.
For example, if you buy coffee for $4.30, Acorns will round up to $5.00 and automatically save that 70 cents. These small amounts can add up significantly – just $2.50 in daily round-ups could accumulate to $900 per year, helping you build your emergency fund without thinking about it.
Plus, if you sign up now you get a $20 bonus.
Another smart way to grow your emergency fund is by reducing monthly expenses.
For instance, many people are overpaying for car insurance simply because they don't compare rates regularly.
OfficialCarInsurance.com makes it easy to compare quotes from leading insurers in your area, potentially saving you hundreds of dollars annually on premiums.
The process is 100% free and won’t affect your credit score. In just a few clicks, you could pay as little as $29 a month.
The money you save on lower insurance rates can go directly into your emergency fund, accelerating your progress toward financial security.
Baby Step 2: Pay off all debt (except the house) using the debt snowball
As of the third quarter of 2024, total credit card debt in the U.S. reached an all-time high of $1.17 trillion, according to the Federal Reserve.
Dave Ramsey recommends using the debt snowball method to pay off your debts. Focus on paying off the smallest debt first while making minimum payments on the others. Once the smallest is paid off, move that payment to the next smallest debt and keep going.
"Debt isn't a math problem; it's a behavior problem. The debt snowball method helps you change your behavior by giving you quick wins and keeping you motivated,” according to Ramsey.
Consolidating all your debts into a personal loan through Credible is an effective way to get rid of your debt faster. Instead of juggling multiple monthly payments, you'll have one predictable payment to manage each month.
Through Credible's online marketplace, the process of finding the right loan becomes much simpler. Credible lets you comparison-shop for the lowest interest rates with just a few clicks.
In less than three minutes, you’ll see all the lenders willing to help pay off your credit cards or other debts with a single personal loan.
Even after consolidating your major debts, staying debt-free can be challenging, especially with rising costs and unforeseen expenses. A budget tool like Origin can help you monitor your spending and stay on track with your goals.
Named by Forbes as the best budgeting app in 2024, Origin helps track your spending, save for your financial goals, view your net worth and invest on the platform to build wealth. Link your accounts so you can take a big-picture look at your net worth, investments and credit score. This allows you to see where you’re overspending and hit your financial goals faster.
You can prioritize saving for short or long-term goals — like a vacation or a down payment for a house — with the help of their new AI budget builder, which can create a personalized budget instantly.
Get started with a 7-day free trial today, plus 35% OFF your first year.
Baby Step 3: Save 3 to 6 months of expenses in a fully funded emergency fund
Now that your debt is behind you, keep moving forward with Dave Ramsey’s Baby Steps by focusing on building your fully funded emergency fund. “Take the money you were using to pay down debt and set aside three to six months’ worth of expenses,” according to Ramsey.
This will safeguard you from life’s bigger unexpected bumps – like job loss or a medical emergency – and help you stay on track without slipping back into debt.
Parking your cash in a high-yield checking or savings account can significantly boost your savings and keep you on course to reach your financial goals. Such accounts offer interest rates that are often 10 to 12 times higher than the national average for traditional savings accounts, which currently stands at around 0.41%.
Unfortunately, over 82% of Americans aren't using such high-yield savings accounts — leaving money on the table, according to CNBC Select. So, it’s important to shop around and compare rates.
For example, you can open a high-yield checking and savings account with SoFi and earn up to 4.00% APY Plus, SoFi charges no account, monthly or overdraft fees.
The best part? You can get up to $300 when you sign up with SoFi and set up a direct deposit.
Baby Step 4: Invest 15% of your household income in retirement
The next Baby Step is to start investing 15% of your gross income towards retirement.
“By the time you’re 67, you should still be working because you want to, not because you have to,” said Ramsey.
A trusted, pre-screened financial advisor can help you develop a solid retirement strategy.
According to research by Vanguard, people who work with financial advisors see a 3% increase in net returns. This difference can be substantial over time. For instance, if you start with a $50,000 portfolio, you could potentially retire with an extra $1.3 million after 30 years of professional guidance.
Finding the right advisor for your needs is simple with Advisor.com. Their platform connects you with an experienced, qualified financial professional in your local area who can provide personalized guidance.
A professional advisor can also help you assess how many years you have left to invest before retirement and determine your comfort level with market fluctuations, both of which are key to creating the right asset mix for your portfolio.
Through Advisor.com, you can schedule a free consultation with no obligation to hire to discuss your financial goals and retirement planning needs.
Baby Step 5: Save for your children’s college fund
By this point, following Dave Ramsey’s 7 Baby Steps, you’ve paid off most of your debts (except the mortgage) and started saving for retirement. The next step is to begin saving for your children’s college expenses.
If you want to give your children the gift of education without the burden of student loans, Wealthfront offers a powerful combination of tools to help make college savings easy and efficient. Start by opening a high-yield cash account that puts your money to work immediately, earning competitive interest rates while maintaining the flexibility you need. Plus, if you fund your account with $500 or more, you can get a $30 bonus with Wealthfront Cash.
Wealthfront's platform makes it simple to automate regular transfers from your high-yield cash account directly into a 529 college savings plan. This automation helps ensure consistent contributions toward your children's education fund. Your investments grow tax-free, and as long as the money is used for qualified education expenses, you won't pay taxes on the withdrawals either. It's like getting a bonus on top of your savings.
By combining these two powerful tools – earning higher interest rates on your cash while systematically funding a tax-advantaged 529 plan – you can build a solid college savings strategy that works in the background while you focus on other aspects of family life and the next Dave Ramsey Baby Step.
Baby Step 6: Pay off your home early
Now, bring it all home. Your mortgage is the only thing between you and complete freedom from debt. Ramsey said, “Baby Step 6 is the big dog!”
Refinancing your home loan through Mortgage Research Center could help you pay off your mortgage early in two effective ways. By securing a lower interest rate, you can either maintain your current monthly payment while more of it goes toward the principal, or you can opt for a shorter loan term to accelerate your path to homeownership.
When you refinance to a shorter term, such as moving from a 30-year to a 15-year mortgage, you'll typically receive a lower interest rate while significantly reducing the total interest paid over the life of your loan. Though your monthly payments may increase, you'll build equity faster and own your home outright years earlier than planned.
Mortgage Research Center, licensed in all 50 states, can help you explore your refinancing options and find the solution that best fits your financial goals.
Their team of experienced professionals will guide you through the process, helping you understand the potential savings and timeline to become mortgage-free and cross out another Ramsey Baby Step.
When you finally pay off the mortgage, you can then start making your home work harder for you by making the most of your equity. The average homeowner sits on roughly $311,000 in equity as of the third quarter of 2024, according to CoreLogic.
Having access to your home equity could help to cover unexpected expenses, pay substantial debt, fund a major purchase like a home renovation or supplement income from your retirement nest egg.
Rates on HELOCs and home equity loans are typically lower than APRs on credit cards and personal loans, making it an appealing option for homeowners with substantial equity.
Unlock great low rates in minutes by shopping around. You can compare real loan rates offered by different lenders side-by-side through LendingTree.
Just answer a few simple questions, and LendingTree will match you with up to 5 lenders¹ with low rates today.
Baby Step 7: Build wealth and give
Ramsey said the last step is the most rewarding: keep building wealth, become outrageously generous and leave a legacy.
Real estate has long been a proven path to building generational wealth. For the 12th year in a row, Americans have ranked real estate as the best long-term investment in 2024, according to a new Gallup survey.
And now there’s a way for everyday investors to tap into this market without having to play landlord or have a huge down payment.
The Fundrise Flagship Fund 2 is a $1 billion private real estate fund that lets you invest in an expertly crafted strategy without needing hundreds of thousands of dollars. You don’t need to be an accredited investor, and you can get started with as little as $10.
These are a few examples of properties powering the Fundrise Flagship Fund. For a full list of the Fundrise Flagship Fund's portfolio properties see the Flagship Fund website.
With 4,700+ single-family homes and 2,500+ residential units owned by the Fundrise Flagship Fund, you get exposure to institutional-style scale and diversification. After you place your first investment, the Fundrise Flagship Fund will work to find and add new assets to your portfolio over time and send you transparent updates along the way.
It only takes a few minutes to sign up now and become a real estate investor today.
Fundrise Flagship Fund
Buy real estate through Fundrise's $1 billion private fund
The next factor to consider is the preservation and protection of your wealth. Life insurance is one such tool for protecting your wealth, offering financial security for your family and ensuring your legacy is preserved.
When selecting an insurance type, Dave Ramsey recommends that families choose term life insurance over whole life insurance and invest the significant savings in a tax-advantaged retirement account.
Term life insurance offers coverage for a predetermined period that typically ranges from 10 to 30 years. If the insured person dies during this term, the policy pays a death benefit to the designated beneficiaries. Term insurance is usually a less expensive and more flexible option compared to whole life insurance.
Young families and busy professionals looking for fast and affordable insurance can easily connect with Ethos and get term life insurance in 5 minutes, with no medical exams or blood tests.
With Ethos, you can get a policy with up to $2 million in coverage, starting at just $2 per day. The application process ensures you get flexible coverage options quickly and transparently, allowing you to focus on what matters most.
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¹ Terms and Conditions apply. NMLS# 1136
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Carefully consider the investment objectives, risks, charges and expenses of the Fundrise Flagship Fund before investing. This and other information can be found in the Fund’s prospectus. Read them carefully before investing. This marketing was vetted by the Moneywise team and sponsored by the Fundrise Flagship Fund.
