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(1) Save $1000 for a mini-emergency fund. If needed, sell extra "stuff" to make this happen quickly. Pay minimum on all debt, and minimize/cease all retirement fund/education fund contributions at this time.

(2) "Snowball" all non-mortgage debt. This means you come up with extra money to put towards the first debt each month, then roll that whole payment into paying off the second debt, and so on. Dave has you order by lowest-to-highest balance, rather than interest rate. Again, minimize/cease all retirement fund contributions at this time. Do not charge anything else during this time - save the money up for any purchase in a "sinking fund" and use that money as your "credit card."

(3) Finish funding emergency fund. This is 3-6 months of living expenses. (Yes, you guessed it, no IRAs of 401k just yet).

(4) Fully fund all available retirement vehicles - 401(k)/403(b) and Roth IRA being the preferred mechanisms. No need to put more than 15% of your income combined in these accounts.

(5) Fully fund college education for children, if any. Use Educational Savings Accounts (aka Educational IRAs) up to the maximum, and supplement with UTMA/UGMA accounts.

(6) Pay off the mortgage on your home.

Great summary! thanks!
Isn't most of this info available right here on the Fool? And other places?

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