Dave Ramsey's Baby Steps

I found Dave's Youtube channel in 2016, and I was hooked. He inspired to get out of debt, and I started following his Baby Steps.

I'm proud to say that I am now debt free with a paid off house. I certainly sleep better at night knowing that I don't owe anyone anything.

Here are the Baby Steps, and how I've been doing with them.

The Baby Steps

1. $1000 Emergency Fund
2. Pay off all debt except the house
3. 3-6 months of expenses in savings
4. Invest 15% of household income into Roth IRAs and pre-tax retirement
5. College funding for children
6. Pay off home early
7. Build wealth and give

const debt = {
  creditCards: 1000,
  car: 5000,
  studentLoans: 10000,
}
const portfolio = {
  stocks: 10000,
  bonds: 5000,
  cash: 1000,
}

const totalDebt = Object.values(debt).reduce((a, b) => a + b, 0);
const totalPortfolio = Object.values(portfolio).reduce((a, b) => a + b, 0);

const netWorth = totalPortfolio - totalDebt;

if (netWorth > 0) {
  console.log('You are doing great, keep working to be debt free!');
  if (totalDebt === 0) {
    console.log('You are debt free, congratulations!');
  } else {
    console.log(`Only ${totalDebt} left to go!`);
  }
} else {
  console.log('Keep working hard, you will get there!');
}