Step 1 - $1000 in Emergency Fund

You might think that paying off debt should be the first step, but that part comes later.  The reasoning behind this step is that most "emergencies" that pop up can be taken care of with $1,000 or less.  This eliminates the need to use credit for those unexpected expenses that pop up...such as car or home repairs.  Always replenish your emergency fund after dipping into it, no matter what step you are on.