Based on personal experience, I have a few problems with both the 7 baby steps and some of the alternatives.

Step 2. Having gone through 30 years of debt, looking back, I would pay off debt before any investing, except for a 401k match. There you get a 100% return the first year.

From the same point of view, I recommend starting with the snowball method and then, after a couple of wins, switch to the avalanche method.

Step 6. I definitely agree with Ramsey here and I would move it before step 5. If you have no debt and an emergency fund, you have more options. Debt is restrictive. Also, there is too much emphasis on investments. They carry many risks. You can win big, but you can lose big, too. Investments are also restrictive.

In theory, in a purely mathematical game with a perfectly level playing field, you want go with the best debt or return interest rates first. However, Life isn’t a game and the playing field is never level.

In general, though, the alternatives are an big improvement over the 7 baby steps.

William “Bill” Myers, Analyzes all, Programmer, retired. If you learn anything new, find enjoyment, have a new thought, then I’m successful. Photo: 1st article

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