#6 Baby Step 5: Save for your children’s college fund.

College Savings Calculator

Introduction:

Welcome to "Figuring the Figures," the podcast where we break down personal finance concepts and make them easier to understand.
Today's episode is all about Dave Ramsey's Baby Step 5, one of the most important steps in his financial plan.
We'll be discussing what Baby Step 5 is, why it's important, and how to achieve it. So, let's get started.

Segment 1: What is Baby Step 5?

Baby Step 5 is all about saving for your children's college education.
Dave Ramsey recommends that parents start saving for their children's college education after they have completed the first four baby steps.
The goal of Baby Step 5 is to ensure that your children don't start their adult lives burdened with student loan debt.

Segment 2: Why is Baby Step 5 important?

The cost of college education has been rising steadily over the years, and it can be a significant financial burden for parents and students.
By saving for your children's college education, you can give them a head start in their adult lives and help them avoid the stress of student loan debt.
Baby Step 5 also helps parents to plan for the future and ensure that they have enough money to cover the cost of their children's education.

Segment 3: How can you achieve Baby Step 5?

Achieving Baby Step 5 requires careful planning and dedication to saving for your children's education. Here are some steps you can take to achieve this goal:

Estimate the cost of your child's education: Before you start saving, it's essential to have an idea of how much money you'll need to cover the cost of your child's education. You can use online calculators or consult with a financial planner to estimate this amount.
Set a savings goal: Based on the estimated cost of your child's education, you can set a savings goal. Dave Ramsey recommends saving for college using a 529 college savings plan or a Coverdell Education Savings Account (ESA).
Start saving early: The earlier you start saving, the more time your money has to grow. Dave Ramsey recommends starting to save for college as soon as your child is born.
Prioritize Baby Step 5: Saving for your child's education should be a priority after you have completed the first four baby steps. Make sure to allocate a portion of your budget towards this goal each month.
Consider other sources of funding: While saving for your child's education is crucial, it's also essential to consider other sources of funding, such as scholarships, grants, and work-study programs.

Conclusion:

Achieving Baby Step 5 can be a significant financial milestone for parents and their children. By saving for your child's education, you can help them avoid the stress of student loan debt and give them a head start in their adult lives. Remember to plan carefully, start early, and prioritize this goal after completing the first four baby steps. Thanks for tuning in to "Figuring the Figures," and we'll see you next time.
🔗 Don't forget to SUBSCRIBE and visit ZtikMan.com for more financial insights and resources!

College Savings Calculator

Introduction:

Welcome to "Figuring the Figures," the podcast where we break down personal finance concepts and make them easier to understand.
Today's episode is all about Dave Ramsey's Baby Step 5, one of the most important steps in his financial plan.
We'll be discussing what Baby Step 5 is, why it's important, and how to achieve it. So, let's get started.

Segment 1: What is Baby Step 5?

Baby Step 5 is all about saving for your children's college education.
Dave Ramsey recommends that parents start saving for their children's college education after they have completed the first four baby steps.
The goal of Baby Step 5 is to ensure that your children don't start their adult lives burdened with student loan debt.

Segment 2: Why is Baby Step 5 important?

The cost of college education has been rising steadily over the years, and it can be a significant financial burden for parents and students.
By saving for your children's college education, you can give them a head start in their adult lives and help them avoid the stress of student loan debt.
Baby Step 5 also helps parents to plan for the future and ensure that they have enough money to cover the cost of their children's education.

Segment 3: How can you achieve Baby Step 5?

Achieving Baby Step 5 requires careful planning and dedication to saving for your children's education. Here are some steps you can take to achieve this goal:

Estimate the cost of your child's education: Before you start saving, it's essential to have an idea of how much money you'll need to cover the cost of your child's education. You can use online calculators or consult with a financial planner to estimate this amount.
Set a savings goal: Based on the estimated cost of your child's education, you can set a savings goal. Dave Ramsey recommends saving for college using a 529 college savings plan or a Coverdell Education Savings Account (ESA).
Start saving early: The earlier you start saving, the more time your money has to grow. Dave Ramsey recommends starting to save for college as soon as your child is born.
Prioritize Baby Step 5: Saving for your child's education should be a priority after you have completed the first four baby steps. Make sure to allocate a portion of your budget towards this goal each month.
Consider other sources of funding: While saving for your child's education is crucial, it's also essential to consider other sources of funding, such as scholarships, grants, and work-study programs.

Conclusion:

Previous Episode

#5 Baby Step 4: Invest 15% of your household income in retirement/business.

Choosing Between Entrepreneurship and Retirement Investing: Which Path Would You Pursue?
Welcome back to "Figuring the Figures" by ZtikMan! In this insightful episode, we delve into Dave Ramsey's Baby Step 4, where we explore the critical decision between entrepreneurship and retirement investing.
🔍 Episode Highlights:
1. Understanding Baby Step 4: Discover the essence of Baby Step 4 in Dave Ramsey's seven-step financial plan.
2. Importance of Investing for Retirement: Unveil the significance of investing in your retirement and securing your financial future.
3. Starting Your Retirement Investment Journey: Learn practical tips on initiating your retirement investment journey and choosing the right retirement account.
4. Staying on Track with Retirement Goals: Gain insights into maintaining momentum towards your retirement goals and maximizing your contributions.
5. Overcoming Challenges in Retirement Savings: Explore strategies for catching up on retirement savings if you're behind and overcoming common hurdles.
Join us as we navigate through the complexities of retirement investing and entrepreneurship, empowering you to make informed financial decisions and secure a prosperous future!
🚀 Timestamps:
- Trailer: 1:21
- Intro: 2:20
- What is Baby Step #4?: 3:04
- Why should you save before investing?: 3:27
- Why is investing into retirement important?: 4:12
- Unlock Compound Interest with Early Investing: 4:24
- What are some benefits of investing into retirement?: 5:04
- Prioritize Emergency Savings Before Investing!: 5:34
- How do you start investing into retirement?: 5:52
- Things to consider before investing.: 6:33
- Using the Ramsey Retirement Calculator: 7:06
- How do I create a budget for investing?: 7:54
- What is a reasonable expectation for annual returns on investments?: 8:59
- What does 28 years of investing look like?: 9:31
- How much can 5 years of investing can change your life.: 10:33
- You can do it too!: 10:55
- How does compound interest work?: 11:35
- Choosing Between Entrepreneurship and Retirement Investing.: 12:17
- If you believe in yourself, do this instead of waiting for retirement.: 13:07
- If your 9-5 is your passion, you're living the dream.: 14:37
- Invest a house into the stock market and make millions: 15:10
- Download this free budget template at ZtikMan.com/BUDGET: 15:38
- Staying on track with your retirement goals.: 16:51
- Maxamize your yearly contributions.: 19:39
- Do you feel it's too late to invest?: 20:50
- You might consider investing more when you get older.: 21:47
- I'm on a million dollar mission.: 22:24
- Find the financial guide you need today!: 22:43
🔗 Don't forget to SUBSCRIBE and visit ZtikMan.com for more financial insights and resources!
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Next Episode

#7 Baby Step 6: Pay off your home early.

Figuring the Figures: Understanding Dave Ramsey's Baby Step 6

Host: ZtikMan

Introduction:

Welcome to "Figuring the Figures," the podcast where we break down personal finance concepts and make them easier to understand. In today's episode, we'll be discussing Dave Ramsey's Baby Step 6, which is all about paying off your home mortgage. We'll cover what Baby Step 6 is, why it's important, and how to achieve it. So, let's dive in.

Segment 1: What is Baby Step 6?

Baby Step 6 is the step where you focus on paying off your home mortgage early. After completing the first five baby steps, you should have no debt other than your mortgage. The goal of Baby Step 6 is to become debt-free, including your mortgage.

Segment 2: Why is Baby Step 6 important?

Paying off your mortgage early has several benefits. First, it frees up a significant portion of your monthly budget, which can be used towards saving for other financial goals, such as retirement or your children's education. Second, it reduces the amount of interest you pay over the life of your loan, saving you thousands of dollars in the long run. Finally, being debt-free, including your mortgage, can provide peace of mind and financial security.

Segment 3: How can you achieve Baby Step 6?

Achieving Baby Step 6 requires discipline and commitment to paying off your mortgage early. Here are some steps you can take to achieve this goal:

Set a goal: Determine how much you need to pay off your mortgage early and set a goal to achieve it. This can be a dollar amount or a specific time frame.
Review your budget: Review your monthly budget and identify areas where you can cut back to free up extra cash to put towards your mortgage.
Consider refinancing: Refinancing your mortgage can help lower your interest rate and reduce your monthly payments, making it easier to pay off your mortgage early.
Make extra payments: Make extra payments towards your principal whenever possible. This can be a lump sum payment or an additional payment each month.
Consider bi-weekly payments: Switching to bi-weekly payments can help you pay off your mortgage faster by making an extra payment each year.

Conclusion:

Achieving Baby Step 6 can be a significant financial milestone and provide peace of mind and financial security. Paying off your mortgage early frees up a significant portion of your monthly budget, reduces the amount of interest you pay over the life of your loan, and provides a sense of accomplishment. Remember to set a goal, review your budget, consider refinancing, make extra payments, and consider bi-weekly payments to achieve Baby Step 6. Thanks for tuning in to "Figuring the Figures," and we'll see you next time.