According to the Financial Health Network, 70% of American households are not financially healthy. U.S. household debt has reached $18.2 trillion, increasing by $4.6 trillion over six years. Dave Ramsey’s debt snowball method involves paying off smaller debts first while making minimum payments on larger ones. A recent study revealed a single habit that doubled Americans’ retirement savings.

The debt snowball method by Dave Ramsey is an effective way to tackle debt. List debts from smallest to largest, make minimum payments on all except the smallest, and throw extra money at the smallest debt. Repeat this process until all debts are paid off. Other key tools for building wealth include having a budget, saving for retirement, and creating emergency funds.

To achieve financial freedom, it is essential to live below your means, automate savings, and identify needs vs. wants. Many Americans underestimate their retirement needs, but data shows those with a specific habit have double the savings of those who don’t. This habit is simple and powerful, not requiring increased income or drastic lifestyle changes.

Read more at Yahoo Finance: Dave Ramsey’s #1 Secret to Crushing Your Debt Fast