According to Dave Ramsey, what should ideally come first in one's financial journey?

Establishing an emergency fund is a fundamental principle emphasized by Dave Ramsey in personal finance. This fund serves as a financial safety net that protects individuals from unexpected expenses, such as medical emergencies, car repairs, or sudden job loss. Having an emergency fund allows people to handle financial surprises without resorting to debt, which can lead to a downward spiral of financial stress.

Dave Ramsey advocates for building an emergency fund early in the financial journey because it lays a crucial foundation for all other financial goals. Once this safety net is in place, individuals can approach other aspects of their financial life, such as saving for retirement, purchasing a home, and investing, with greater confidence and security. The peace of mind that comes from knowing you have funds available for emergencies can significantly affect your ability to make sound financial decisions moving forward.