What is the second Baby Step in Dave Ramsey's plan?

The second Baby Step in Dave Ramsey's financial plan focuses on paying off all non-house debt using the debt snowball method. This method emphasizes the psychological benefits of paying off smaller debts first. By tackling these smaller debts, individuals experience quick wins that build motivation and confidence, which helps them stay committed to the overall plan. Once all non-house debts are eliminated, individuals can move onto further financial goals such as investing for retirement or saving for education.

The other options focus on different financial aspects that occur at later stages in Dave Ramsey's plan, such as saving for a house or children's education, which are part of subsequent Baby Steps. The emphasis of Baby Step Two is solely on the aggressive payoff of debts to create a strong financial foundation.