Dave Ramsey gives financial advice

I like listening to Dave Ramsey's show on the radio. I don't want to give unsolicited financial advice so I will write some stuff I learned from him here on my blog.

I took some notes while listening to the Dave Ramsey show which you can get on podcast, very cool. This is the basics of his financial program. The complete program is in his book Total Money Makeover

How to get debt free!
1. $1000 emergency fund
2. Pay all debts except mortgage using debt snowball
3. Emergency fun equivalent to 3-6 months of expenses
4. Put 15% of income towards retirement
5. Save for kid's college and other future expenses
6. Pay off house

Debt snowball (step 2)
1. Determine all debts that need to be paid
2. Determine minimum payments required on all debt and balances
3. Create monthly budget (utilities, cars, entertainment etc) and allocate all extra funds to "debt reduction fund"
4. Pay off debt with the smallest balance using its minimum payment plus the debt reduction fund.
5. When that is paid off then add the minimum balance to the debt reduction fund so that it snowballs.
6. Pay off debt with the next smallest balance, adding the minimum balance to the debt reduction fund and repeat until all debt except the house is paid off.