📝The seven baby steps provide a proven system for saving money and building wealth.
💵Budgeting and having an emergency fund are crucial first steps to saving $100,000.
💰Pay off all your debts, except for your mortgage, to gain financial freedom.
📈Invest 15% of your income into retirement to benefit from compound interest.
🏡Pay off your mortgage and invest for your children's college education.
How long does it take to save $100,000?
—Depending on your income and expenses, it could take several years to reach $100,000 in savings.
What is the debt snowball method?
—The debt snowball method involves paying off your debts from smallest to largest, regardless of interest rates.
Is it necessary to have a fully funded emergency fund?
—Having a fully funded emergency fund of 3-6 months of expenses provides financial security and peace of mind.
When should I start investing for retirement?
—It's best to start investing for retirement as soon as possible to take advantage of compound interest.
Why is paying off the mortgage important?
—Paying off your mortgage eliminates a significant monthly expense and allows you to build more wealth.
00:00Introduction to saving your first $100,000 and the seven baby steps.
02:58Importance of budgeting and having an emergency fund.
06:25Pay off debts, starting with the smallest.
08:53Invest 15% of your income into retirement.
09:56Save for children's college and pay off your mortgage.
