According to Dave Ramsey, what should be the first step in building wealth?

The first step in building wealth, according to Dave Ramsey, is creating a budget and eliminating debt. This step is foundational because it establishes a clear understanding of one's financial situation. A budget allows individuals to track their income and expenses, making it easier to identify areas where they can save money. Eliminating debt is crucial because high-interest debts can drain financial resources and hinder the ability to save and invest for the future.

By focusing on budgeting and debt elimination first, individuals create a stable financial base. This leads to more manageable financial decisions in the future, allowing them to direct their resources towards investment and wealth-building activities like saving for emergencies, investing in real estate, or increasing contributions to retirement accounts. This approach aligns with Ramsey’s overall philosophy of financial stewardship, which emphasizes living within one's means and prioritizing debt freedom before pursuing risky investments or business ventures.