Chapter 6 introduces the Total Money Makeover plan. The plan involves seven “Baby Steps,” taken in a fixed order, one at a time. It advocates for achieving small goals individually because incremental, observable progress boosts confidence: “The power of focus is what causes our Baby Steps to work. When you try to do everything at once, progress can be very slow […] If you feel that nothing is getting done, you will soon lose energy for the task of money management altogether” (94). The Baby Steps are specifically ordered to ensure success.

Ramsey makes three preliminary observations before discussing Baby Step One. First, he insists that having a written budget is essential. Second, he emphasizes the importance of agreement between couples in pursuing financial goals. Third, he points out that passion and perseverance are required for victory.

Baby Step One is an emergency fund of $1,000. Ramsey stresses that this “rainy-day” fund is only for emergencies—car repairs and grown kids moving back home, not an attractive sale on a TV. He also stresses getting the money quick. He then urges readers to keep this money hidden (to prevent impulse spending) but also accessible as “liquid, available cash” (107).