Talk show host Dave Ramsey's financial planning tips involve paying off debt before investing, building a strong emergency fund and paying with cash whenever possible. Once individuals have no consumer debt, Ramsey encourages them to invest 15 percent of their household income toward retirement, according to DaveRamsey.com.
Ramsey outlines his monetary advice in what he calls the seven baby steps to financial peace. He encourages people to stop their retirement investing until they have no consumer debt, which includes vehicle payments, credit-card debts and student loans. This allows people to make larger debt payments for a faster payoff, DaveRamsey.com explains. After people eliminate their consumer debt, Ramsey instructs them to build an emergency fund of three to six months of expenses as a way to stay out of debt if they lose a job or suffer a major crisis.
Once people have a large emergency fund, Ramsey encourages them to invest pre-tax money in a 401(k) plan, up to any available company match. After people meet their company match, Ramsey recommends investing post-tax money in a Roth IRA, DaveRamsey.com notes. While Ramsey doesn't recommend specific investment funds, he suggests choosing funds that are at least five years old. He also recommends equally dividing retirement investments among four types of funds: growth, growth and income, aggressive growth and international.