I know Baby Step 1 is saving a beginner emergency fund of $1,000. You’re sick and tired of being sick and tired, and you’re going to get control of your money and your life. Once you’ve paid off this debt, you’ll be able to save more and increase your beginner emergency fund to a fully-funded emergency fund of three to six months of expenses pretty quickly. In Baby Step 4, you’ll start investing 15 percent of your income for retirement. If you have kids, setting aside something to help them with college comes next in Baby Step 5.