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Baby Steps Millionaires: How Ordinary People Built Extraordinary Wealth-- and How You Can Too
You Can Baby Step Your Way to Becoming a Millionaire
Most people know Dave Ramsey as the guy who did stupid with a lot of zeros on the end. He made his first million in his twenties—the wrong way—and then went bankrupt. That’s when he set out to learn what God had to say about managing money and building wealth. As a result, Dave developed the Ramsey Baby Steps and became a millionaire again—this time the right way.
After three decades of guiding millions of others through the plan, the evidence is the Baby Steps not only work for everyone, but they’re proven to work fast. If you follow the plan, you will get out of debt, and you can become a millionaire.
In Baby Steps How Ordinary People Built Extraordinary Wealth --and How You Can Too, readers will . . .
Take a deeper look at Baby Step 4 to learn how Dave invests and builds wealthLearn how to bust through the barriers preventing them from becoming a millionaireHear true stories from ordinary people who dug themselves out of debt and built wealthDiscover how anyone can become a millionaire, no matter their financial status.Baby Steps Millionaires isn’t a book that tells the secrets of the rich. It’s not even full of sophisticated, hard-to-grasp concepts reserved only for the elite. As a matter of fact, this information is straightforward, practical, and maybe even a little boring. But the life you lead if you follow the Baby Steps is anything but boring! You don’t need a large inheritance or the winning lottery number to become a millionaire. Anyone can do it—even today. For those who are ready, it’s game on!
Most people know Dave Ramsey as the guy who did stupid with a lot of zeros on the end. He made his first million in his twenties—the wrong way—and then went bankrupt. That’s when he set out to learn what God had to say about managing money and building wealth. As a result, Dave developed the Ramsey Baby Steps and became a millionaire again—this time the right way.
After three decades of guiding millions of others through the plan, the evidence is the Baby Steps not only work for everyone, but they’re proven to work fast. If you follow the plan, you will get out of debt, and you can become a millionaire.
In Baby Steps How Ordinary People Built Extraordinary Wealth --and How You Can Too, readers will . . .
Take a deeper look at Baby Step 4 to learn how Dave invests and builds wealthLearn how to bust through the barriers preventing them from becoming a millionaireHear true stories from ordinary people who dug themselves out of debt and built wealthDiscover how anyone can become a millionaire, no matter their financial status.Baby Steps Millionaires isn’t a book that tells the secrets of the rich. It’s not even full of sophisticated, hard-to-grasp concepts reserved only for the elite. As a matter of fact, this information is straightforward, practical, and maybe even a little boring. But the life you lead if you follow the Baby Steps is anything but boring! You don’t need a large inheritance or the winning lottery number to become a millionaire. Anyone can do it—even today. For those who are ready, it’s game on!
222 pages, Kindle Edition
Published January 11, 2022
1334 people are currently reading
3236 people want to read
About the author
Dave Ramsey
215 books2,573 followersDave Ramsey is America’s trusted voice on money and business. He’s a #1 National bestselling author and host of The Ramsey Show, heard by more than 18 million listeners each week. Dave’s eight national bestselling books include The Total Money Makeover, Baby Steps Millionaires, and EntreLeadership. Since 1992, Dave has helped people take control of their money, build wealth, and enhance their lives. He also serves as CEO of Ramsey Solutions.
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Displaying 1 - 30 of 535 reviews
July 16, 2023
I picked up this book fully expecting it to be a repackaged version of the content I've already read through in Dave Ramsey's Total Money Makeover, the Financial Peace University (FPU) material, and Everyday Millionaires by Chris Hogan… and I was pretty much fine with that. In my opinion, it's good to remind myself of why I'm doing what I'm doing with my finances, and to be inspired by more stories of others who have succeeded using the same plan I'm using.
This book has up-to-date information for 2022, and it does a good job of explaining the differences between the way millionaires and billionaires should be perceived.
To give some personal information about myself and how Dave Ramsey's material has affected me… My wife and I were first introduced to the FPU material and the "baby steps" in late 2010. We'd been married for two years, and we'd just moved into a new house. My job was relatively low-paying, and my wife had just been laid off from her job. She had also just given birth to our first child, so to say we were financially stressed would be an understatement.
In order to furnish our new home, we had purchased a refrigerator, an area rug, and a couch on credit. We already had unpaid student loans, a car payment, and some other (relatively small) debt, but we were on our way to accumulating more. In hindsight, I'm extremely grateful that we decided to participate in FPU when we did - I truly believe it changed the trajectory of our lives.
Within weeks of starting FPU, we started saving aggressively. We cut every expense we could, including the data plans for our phones, cable/streaming services, and other non-necessities. My wife found some contract work, and when we really scrutinized our budget, we realized that we could pay our mortgage, buy groceries, cover our bills, tithe, and have enough left over to pay off our debts within just a few months. It took commitment and sacrifice, but I'm proud to say we did it. By mid-2011, we were debt-free with a fully-funded emergency fund and on our way to paying down our mortgage.
(Just as a side note: Once we were debt-free, we were able to re-activate the data plans for our phones and restart our favorite streaming service, so we didn't have to sacrifice very much for very long. But we also realized which things we weren't missing, and we opted not to restart those unnecessary expenses.)
Per Dave Ramsey's advice, we also made sure to maximize the investments that my company would match for my 401k, and we participated in my company's generously discounted employee stock purchase plan. We eventually opened college savings accounts for our (now three) children as well. God truly blessed our faithfulness to be good stewards of what He'd given us, and as of this month, we're just now obtaining the status of "Baby Steps Millionaires."
In the book, Dave Ramsey explains that the average time it takes for those who follow the baby steps to become millionaires is about 17 years. Thanks to many, many blessings God has provided, our family has done it in less than 12. And we (like many others) did it with a household income of less than six figures.
My reason for sharing all this is to say that the baby steps work. My family has been greatly blessed by Ramsey's teaching, and we're able to bless others with what we have as well. No matter where you're starting from, if you're willing to follow the process, it can and will work for you as well.
This book has up-to-date information for 2022, and it does a good job of explaining the differences between the way millionaires and billionaires should be perceived.
To give some personal information about myself and how Dave Ramsey's material has affected me… My wife and I were first introduced to the FPU material and the "baby steps" in late 2010. We'd been married for two years, and we'd just moved into a new house. My job was relatively low-paying, and my wife had just been laid off from her job. She had also just given birth to our first child, so to say we were financially stressed would be an understatement.
In order to furnish our new home, we had purchased a refrigerator, an area rug, and a couch on credit. We already had unpaid student loans, a car payment, and some other (relatively small) debt, but we were on our way to accumulating more. In hindsight, I'm extremely grateful that we decided to participate in FPU when we did - I truly believe it changed the trajectory of our lives.
Within weeks of starting FPU, we started saving aggressively. We cut every expense we could, including the data plans for our phones, cable/streaming services, and other non-necessities. My wife found some contract work, and when we really scrutinized our budget, we realized that we could pay our mortgage, buy groceries, cover our bills, tithe, and have enough left over to pay off our debts within just a few months. It took commitment and sacrifice, but I'm proud to say we did it. By mid-2011, we were debt-free with a fully-funded emergency fund and on our way to paying down our mortgage.
(Just as a side note: Once we were debt-free, we were able to re-activate the data plans for our phones and restart our favorite streaming service, so we didn't have to sacrifice very much for very long. But we also realized which things we weren't missing, and we opted not to restart those unnecessary expenses.)
Per Dave Ramsey's advice, we also made sure to maximize the investments that my company would match for my 401k, and we participated in my company's generously discounted employee stock purchase plan. We eventually opened college savings accounts for our (now three) children as well. God truly blessed our faithfulness to be good stewards of what He'd given us, and as of this month, we're just now obtaining the status of "Baby Steps Millionaires."
In the book, Dave Ramsey explains that the average time it takes for those who follow the baby steps to become millionaires is about 17 years. Thanks to many, many blessings God has provided, our family has done it in less than 12. And we (like many others) did it with a household income of less than six figures.
My reason for sharing all this is to say that the baby steps work. My family has been greatly blessed by Ramsey's teaching, and we're able to bless others with what we have as well. No matter where you're starting from, if you're willing to follow the process, it can and will work for you as well.
January 27, 2022
If it wasn’t for the appendix of the Millionaires Study l, there would be nothing to gain from this book that I hadn’t already learned in his prior books. On top of that, where prior books felt inspirational, this book read more like a lecture to me. I would recommend The Total Money Makeover; I wouldn’t recommend this book.
January 20, 2022
This book had two main components: a cheerleading section and a study about millionaires.
In the cheerleading section, Dave made the case that normal, everyday people can become millionaires. It doesn't take an inheritance, a six figure salary, or winning the lottery/getting lucky in the stock market. In fact, quite the opposite - more people become millionaires from hard work and dedication than inheritance or luck. I'm a believer in the baby steps, and I figured I might get there someday, but now I've removed that doubt - I know I'll get there if I keep at it!
The second section was actually an appendix, but it was probably 40% of the book. It described a study Ramsey commissioned on millionaires, and it was very interesting. I can't remember having read an appendix before, but this was fascinating.
There were a few other components, like how to make sure your kids aren't entitled jerks.
So why 4 stars? Well, I love Dave and this was a good book (I'd pretty much read anything by him), but I wanted more. I bought the Kindle version on preorder, and the whole time I was waiting for it to come out, I had in my mind that it was going to cover investing in detail (it didn't). Looking back, I have no idea where I got this notion, but I was a little let down anyway, even though the book description doesn't claim to cover this topic. Aside from that, I would've liked more new information. But... at the end of the day, if you're not really sure if you CAN do this, or you're not sure what it will look like TO do it, it's a good read.
In the cheerleading section, Dave made the case that normal, everyday people can become millionaires. It doesn't take an inheritance, a six figure salary, or winning the lottery/getting lucky in the stock market. In fact, quite the opposite - more people become millionaires from hard work and dedication than inheritance or luck. I'm a believer in the baby steps, and I figured I might get there someday, but now I've removed that doubt - I know I'll get there if I keep at it!
The second section was actually an appendix, but it was probably 40% of the book. It described a study Ramsey commissioned on millionaires, and it was very interesting. I can't remember having read an appendix before, but this was fascinating.
There were a few other components, like how to make sure your kids aren't entitled jerks.
So why 4 stars? Well, I love Dave and this was a good book (I'd pretty much read anything by him), but I wanted more. I bought the Kindle version on preorder, and the whole time I was waiting for it to come out, I had in my mind that it was going to cover investing in detail (it didn't). Looking back, I have no idea where I got this notion, but I was a little let down anyway, even though the book description doesn't claim to cover this topic. Aside from that, I would've liked more new information. But... at the end of the day, if you're not really sure if you CAN do this, or you're not sure what it will look like TO do it, it's a good read.
January 25, 2022
5 stars.
If you laugh at the idea that you could be a millionaire someday, I dare you read this book. If you’re in debt and feel like you’ll never escape it- read this book. If you’re a spender or a saver- read this book. If you’re discouraged with your money or excited about your savings- read this book. If you’re a parent who doesn’t want your children to have the same (or worse) money problems that you have have- Read. This. Book.
I truly feel like there’s something for EVERYONE here. Regardless of status, upbringing, religion, race, and gender- Dave explains how anyone can become a millionaire in clear and attainable steps.
“Men and women are limited not by their intelligence, nor by their education, not by the color of their skin, but by the size of their hope.” - John Johnson, founder of Ebony magazine.
I feel so empowered and full of hope and faith after reading this one.
If you laugh at the idea that you could be a millionaire someday, I dare you read this book. If you’re in debt and feel like you’ll never escape it- read this book. If you’re a spender or a saver- read this book. If you’re discouraged with your money or excited about your savings- read this book. If you’re a parent who doesn’t want your children to have the same (or worse) money problems that you have have- Read. This. Book.
I truly feel like there’s something for EVERYONE here. Regardless of status, upbringing, religion, race, and gender- Dave explains how anyone can become a millionaire in clear and attainable steps.
“Men and women are limited not by their intelligence, nor by their education, not by the color of their skin, but by the size of their hope.” - John Johnson, founder of Ebony magazine.
I feel so empowered and full of hope and faith after reading this one.
January 16, 2022
I’m so disappointed. Nearly the entire book was proselytization. It’s nothing you haven’t heard before—watch the YouTube videos for free for Ramsey financial advice. I liked his earlier books because they were a lot more accepting and inclusive of other religious beliefs. This one straight up tells you you’ll never find peace and you’ll burn for eternity if you don’t follow his religion. Yikes
May 1, 2023
This is less of a review and more of notes for me, hence the spoilers tag.
My neighbors are debt free and they attribute their success to these steps. At the same time, I understand the criticisms of this book but I found a lot of value in it. Specifically for me the understanding of what a millionaire actually is and how to determine net worth. I appreciate the strategy of baby steps and I’m already implementing many of them.
Becoming a millionaire is well within your reach.
TWO things: change your belief and follow the Ramsey Baby Steps
billionaires typically run at least one national company. Millionaires, on the other hand, are found in more common professions like engineer, accountant, and teacher, as reported by the National Study of Millionaires by the author’s company Ramsey Solutions.
I’m a teacher and I can be a millionaire.
*part of changing your belief is also switching from a sense of helplessness to a sense of control.
Start the Ramsey Baby Steps by covering your debts:
Baby Step #1 is putting away a starter emergency fund worth $1000
#2 climbing out of all your debt, except for your home mortgage
Baby Step #3 is upgrading your starter emergency fund into a fully-funded emergency fund. This means it can cover three to six months of your minimum living expenses in case you experience major setbacks like job loss and health emergencies
Steps 1-3 is 2.5 - 3 years!
Baby Step #4 is taking 15% of your household income before taxes and placing that into retirement accounts.
Step #5: starting your kids’ college fund using either a 529 college savings plan or an Education Savings Account (ESA).
Baby Step #6: settling your remaining debt: your home mortgage. Whatever’s left after your 15% retirement fund and your kids’ college funds needs to go to your house payments right away.
7: sharing your wealth with others. Take your family on vacations or treat a stranger to coffee.
Baby Steps Millionaires are Ordinary People!
My neighbors are debt free and they attribute their success to these steps. At the same time, I understand the criticisms of this book but I found a lot of value in it. Specifically for me the understanding of what a millionaire actually is and how to determine net worth. I appreciate the strategy of baby steps and I’m already implementing many of them.
Becoming a millionaire is well within your reach.
TWO things: change your belief and follow the Ramsey Baby Steps
billionaires typically run at least one national company. Millionaires, on the other hand, are found in more common professions like engineer, accountant, and teacher, as reported by the National Study of Millionaires by the author’s company Ramsey Solutions.
I’m a teacher and I can be a millionaire.
*part of changing your belief is also switching from a sense of helplessness to a sense of control.
Start the Ramsey Baby Steps by covering your debts:
Baby Step #1 is putting away a starter emergency fund worth $1000
#2 climbing out of all your debt, except for your home mortgage
Baby Step #3 is upgrading your starter emergency fund into a fully-funded emergency fund. This means it can cover three to six months of your minimum living expenses in case you experience major setbacks like job loss and health emergencies
Steps 1-3 is 2.5 - 3 years!
Baby Step #4 is taking 15% of your household income before taxes and placing that into retirement accounts.
Step #5: starting your kids’ college fund using either a 529 college savings plan or an Education Savings Account (ESA).
Baby Step #6: settling your remaining debt: your home mortgage. Whatever’s left after your 15% retirement fund and your kids’ college funds needs to go to your house payments right away.
7: sharing your wealth with others. Take your family on vacations or treat a stranger to coffee.
Baby Steps Millionaires are Ordinary People!
This entire review has been hidden because of spoilers.
January 1, 2025
I was gifted this by a well-intentioned family member (kind of insulting), but I decided to keep an open mind and read the book. Didn’t think you could make a book about budgeting into Christian, capitalist propaganda, but you sure can! Once Dave mentioned God in the same sentence as money, I knew it was all going downhill from there.
The principle of cutting down debt before you save—I’m with it. The argument that all Americans are relatively wealthy and billionaires can actually be quite lovely if you just get to know them—I’m not with it.
I won’t even touch the stuff about parenting and Gen Y/Z being inferior to Gen X. Dave thinks he knows best and that much is clear. Bless his heart.
The principle of cutting down debt before you save—I’m with it. The argument that all Americans are relatively wealthy and billionaires can actually be quite lovely if you just get to know them—I’m not with it.
I won’t even touch the stuff about parenting and Gen Y/Z being inferior to Gen X. Dave thinks he knows best and that much is clear. Bless his heart.
April 4, 2022
Some parts of this book were amazing and transformative. I definitely upped my financial IQ. My criticism is how the book is written.
It’s called Baby Steps Millionaires and only the first 40 of 280 pages talked about the baby steps. The book itself is 150 pages with 90 pages of notes at the end. Also, the last 20 or so pages were a little too preachy and I felt like I was reading the Bible. Nothing wrong with reading the Bible but it just seemed off topic for this book.
It’s called Baby Steps Millionaires and only the first 40 of 280 pages talked about the baby steps. The book itself is 150 pages with 90 pages of notes at the end. Also, the last 20 or so pages were a little too preachy and I felt like I was reading the Bible. Nothing wrong with reading the Bible but it just seemed off topic for this book.
October 14, 2022
I did enjoy it but it was a review of things written in his and Chris Hogan’s previous works. There was nothing original except his chapter on “Better than I Should”.
October 26, 2022
“Personal finance is 80% behavior and 20% head knowledge.”
January 25, 2022
Book was ok. To me it was a big sales pitch for all his other books, I don't think there was any new information within the chapters. The biggest positive is the National Study of Millionaires in the appendix. It's basically an updated study on the habits of millionaires similar to the nearly 20 year old book The Millionaire Next Door.
January 12, 2022
Baby Steps Millionaires: How Ordinary People Built Extraordinary Wealth-- and How You Can Too by Dave Ramsey 224 pages 4 hours and 50 minutes read by author.
Genre: Nonfiction, Money & Finance, Investing & Trading, Budgeting & Money Management, Christian
Featuring: Mindsets, Testimonials, The Baby Steps, Statistics, Alter Call
Rating as a movie: G - for general audience
My rating: 🌟🌟🌟🌟🌟
Quote: "The Tortoise and the Hare is not just a tale to emphasize the speed at which you win, but the things that get in the way of how quickly you win or that keep you from winning at all: Arrogance, Disrespect, Idleness, Neglect, Poor Judgment, and a Lack of Strategy or Focus."
My thoughts: 42% - Very good so far. I haven't had any audio problems. This should have been a one sitting read as it's very engaging but lots of distractions today.
If you think this is a rehashing of The Total Money Makeover or Everyday Millionaires, you're wrong. This book only briefly touches on those topics and is mostly centered around the reason so many people do not achieve millionaire status and how to change your mindset so you can. It focuses on people who used the Ramsey Baby Steps to achieve millionaire status with a huge emphasis on Baby Step 4. It is a very motivating read full of information you make or may not have heard on the Dave Ramsey Show, now The Ramsey Show, including why so many people didn't return to work after receiving unemployment and what that has to do with your kid's allowance. Dave shares the testimonies of others in this book to prove that anybody can achieve millionaire status if they have the time and the determination to do so. He compares decamillionaire and below to billionaire, apparently that is how most Americans see millionaires. He shares stories of celebrities you may or may not know that either blew through their wealth, Andre Rison, and those who made their millions and kept them, Condoleezza Rice. He mostly talks about unknown people who had average jobs and used the Baby Steps to make their million/s. He explains why teacher is in the top careers that millionaire retirees have and doctor isn't, why so many immigrants become millionaires in the US, and how poverty looks different elsewhere. If you make $10,000 a year you are in the top 20% of the richest people in the world, and if you make $20k you're in the top 5% but your perspective is that you are poor because you're comparing yourself to other Americans with more money. He goes into a lot detail about how perspective can change your belief and that can change your mindset. If you see a lot of teachers retiring with 2 million dollars net worth you're more likely to believe it's possible then if you don't know anyone doing that. I hear people talk about broke teachers all the time, seriously they're really not broke. Anyway, I don't think there was tons of new material on this book but I think the insight was new and it was a very motivating read in my opinion. Especially since I actually do know a lot of people who quit after baby step 4 because they were done budgeting and since it would be a long time to a paid off home and retirement, they slowed down or took a break. I think the purpose of this book is to get people over that hump of relief they feel with they are debt free and have extra money, so they can finish the race.
Recommend to others?: Absolutely! This book is on my reread list and to my husband and kids.
Genre: Nonfiction, Money & Finance, Investing & Trading, Budgeting & Money Management, Christian
Featuring: Mindsets, Testimonials, The Baby Steps, Statistics, Alter Call
Rating as a movie: G - for general audience
My rating: 🌟🌟🌟🌟🌟
Quote: "The Tortoise and the Hare is not just a tale to emphasize the speed at which you win, but the things that get in the way of how quickly you win or that keep you from winning at all: Arrogance, Disrespect, Idleness, Neglect, Poor Judgment, and a Lack of Strategy or Focus."
My thoughts: 42% - Very good so far. I haven't had any audio problems. This should have been a one sitting read as it's very engaging but lots of distractions today.
If you think this is a rehashing of The Total Money Makeover or Everyday Millionaires, you're wrong. This book only briefly touches on those topics and is mostly centered around the reason so many people do not achieve millionaire status and how to change your mindset so you can. It focuses on people who used the Ramsey Baby Steps to achieve millionaire status with a huge emphasis on Baby Step 4. It is a very motivating read full of information you make or may not have heard on the Dave Ramsey Show, now The Ramsey Show, including why so many people didn't return to work after receiving unemployment and what that has to do with your kid's allowance. Dave shares the testimonies of others in this book to prove that anybody can achieve millionaire status if they have the time and the determination to do so. He compares decamillionaire and below to billionaire, apparently that is how most Americans see millionaires. He shares stories of celebrities you may or may not know that either blew through their wealth, Andre Rison, and those who made their millions and kept them, Condoleezza Rice. He mostly talks about unknown people who had average jobs and used the Baby Steps to make their million/s. He explains why teacher is in the top careers that millionaire retirees have and doctor isn't, why so many immigrants become millionaires in the US, and how poverty looks different elsewhere. If you make $10,000 a year you are in the top 20% of the richest people in the world, and if you make $20k you're in the top 5% but your perspective is that you are poor because you're comparing yourself to other Americans with more money. He goes into a lot detail about how perspective can change your belief and that can change your mindset. If you see a lot of teachers retiring with 2 million dollars net worth you're more likely to believe it's possible then if you don't know anyone doing that. I hear people talk about broke teachers all the time, seriously they're really not broke. Anyway, I don't think there was tons of new material on this book but I think the insight was new and it was a very motivating read in my opinion. Especially since I actually do know a lot of people who quit after baby step 4 because they were done budgeting and since it would be a long time to a paid off home and retirement, they slowed down or took a break. I think the purpose of this book is to get people over that hump of relief they feel with they are debt free and have extra money, so they can finish the race.
Recommend to others?: Absolutely! This book is on my reread list and to my husband and kids.
May 13, 2023
I was hoping to get more out of this book than I did. The first few chapters rehash information anyone familiar with Dave Ramsey already knows; his background and the baby steps. Then the focus shifts to what it means to be a Baby Step Millionaire. This is the part I enjoyed the most. It's about shifting your focus. A millionaire is not what we expect from tv: fancy cars, big houses, etc. That's a billionaire. The everyday millionaire saves up for big purchases, sticks to a budget, and does not live extravagantly.
What disappointed me the most is I expected more; more ideas on how to balance saving for retirement and saving for college. More inspirational stories about people who worked the system. There are some, and their stories are good, but it didn't feel like enough. The worst part is this book is technically 226. The last 100 pages are the millionaire study itself. That's where I lost interest. It's basically showing you the data Dave used to write the book so you're reading the same information you just read.
I'm giving this book 3 stars because it did inspire me and renew my dedication to my financial goals. However if you only read one Dave Ramsey book it should be The Total Money Makeover, not this one.
What disappointed me the most is I expected more; more ideas on how to balance saving for retirement and saving for college. More inspirational stories about people who worked the system. There are some, and their stories are good, but it didn't feel like enough. The worst part is this book is technically 226. The last 100 pages are the millionaire study itself. That's where I lost interest. It's basically showing you the data Dave used to write the book so you're reading the same information you just read.
I'm giving this book 3 stars because it did inspire me and renew my dedication to my financial goals. However if you only read one Dave Ramsey book it should be The Total Money Makeover, not this one.
February 16, 2022
If you’ve read his other books, you’ve read this one. The biggest change is that he’s included a massive survey his organization just conducted about “millionaire lifestyle habits, mindsets, goals, and history.” In fact, half the book is the statistical findings from the survey. In other words, the book itself is only 100 pages long. Nothing wrong with that, but just know what you’re getting.
June 14, 2024
I did not learn anything new from this book. All was just repetitive stuff of staying out of debt, money is not bad, and making money is for being generous. But dear dave, I hope you learn this from me, if everyone is rich, then no one is rich. Wealth is a form of comparison.
April 20, 2025
The Youtube algorithm put The Ramsey Show in front of me -- and I've watched quite a few of their highlight videos and full caller episodes. Dave Ramsey is entertaining, there's no denying that. He has a no nonsense way of conveying his advice, coupled with some memorable zingers, which makes this show quite easily addictive. There's a whole playlist of just "Dave's rants".
But he's also incredibly conservative and religious, and likely a Trump supporter. And that viewpoint also permeates strongly through his content. There will be times where he just outright says liberals are stupid. But it's also little moments, like stressing (seemingly out of no where) that "legal" immigrants (fixating, and repeating the word "legal" multiple times before continuing on with his sentence) are hardworking and contribute positively to the American economy -- as if by default the majority of immigrants aren't "legal" so we really needed that clarification?
Another episode, the viewers quite severely criticised the Ramsey hosts for daring to suggest a caller's wife could work for one or two years to help pay for their wedding, intended house purchase, and intended children -- "What's wrong with her staying at home if he says he can cover their expenses," they facetiously asked. (Um. Because the callers overestimate their own financial literacy, he actually makes concerningly little money, plus he wants to cover several large life events, plus she's only working for one or two years, plus it was only a suggestion! -- come on now.) The Ramsey Show features a disproportionately high number of stay-at-home wives -- and I'm pretty sure that's because it's so heavily marketed to fundamental Christians. Idk, it's like suddenly getting this glimpse into a foreign world, where women being financially dependent on their breadwinner husbands is not only normalised but idealised -- if you were a millionaire what would you do? Have your wife stay home and homeschool the kids in true "Christian teachings" so they don't have to be "poisoned by wokeness". Gosh, watching the people on this show sometimes is so fascinating.
So, I went into this book expecting to be clubbed over the head with that perspective. But, even still, I was surprised by how little this book had to do with financial planning and how much it seemed like proselytising. A heavy chunk in the middle of this book was all just scripture quotations -- and funnily enough, using the bible to justify why being wealthy is a good thing, a holy thing, ordained by god. The book also ends with a call to the readers to join their local churches, else our souls are damned etc.
I've also noticed that this book, the show, draws quite heavily on proselytising techniques for selling its financial system. The book included multiple stories of ordinary people, from different backgrounds, following the Ramsey method and now all being millionaires. There's a particular storytelling way that just reminded me of Christian miracle testimonials. And of course Dave celebrates them for staying true to the course in that compelling manner he has. The show also brings on ordinary people for a "debt free scream" -- they look just like you or me (although overwhelmingly white and Christian), they're bursting with excitement and praise for the Ramsey method, they're complimented to the high heavens by Dave and the hosts ("You're everyday heroes!"), and then the segment always ends with them letting out a "we're debt free!" scream -- just like the "Hallelujah! Your sickness has been healed! Praise the lord!" shouts you might hear in a Church congregation. It's all a bit cult-like tbh. Again, these techniques just make me wary.
Ultimately, I think the Ramsey method -- and Dave's communication style -- is really effective for speaking to people with severe debt, and giving them the kick up the pants to get out of debt. It's when you've hit neutral that I think you should look elsewhere for investment advice (diversify! as they say: diversify your sources of information!) -- I think it's a little ethically dodgy that the Ramsey team directs its followers to sign up to managed funds with their "SmartVestor Pros", with likely a kickback for the referral plus lifelong (higher) fund management fees. Dave's retort to the criticism that managed mutual funds underperform the market is just to "Not pick the ones that underperform and only invest in the ones that outperform, duh". Okay. Sure. If everyone could magically pick winners... -- He repeats that belief in this book btw: after giving the statistic that 70% of managed funds underperform, he says, "Well that means there's 30% that overperform so just pick those". He remains stubbornly confident in his point of view.
Ultimately, it doesn't matter. If you follow the Ramsey method and cross the $1m mark at retirement -- heck, you might even hit 2, 3, 5+ million -- it won't matter if you've lost hundreds of thousands in higher percentage management fees and underperforming funds. The point is to get out of debt and develop disciplined investing habits over decades of time. That underlying message can't be faulted -- but, bloody hell, there's just so much proselytising to wade through in this book.
But he's also incredibly conservative and religious, and likely a Trump supporter. And that viewpoint also permeates strongly through his content. There will be times where he just outright says liberals are stupid. But it's also little moments, like stressing (seemingly out of no where) that "legal" immigrants (fixating, and repeating the word "legal" multiple times before continuing on with his sentence) are hardworking and contribute positively to the American economy -- as if by default the majority of immigrants aren't "legal" so we really needed that clarification?
Another episode, the viewers quite severely criticised the Ramsey hosts for daring to suggest a caller's wife could work for one or two years to help pay for their wedding, intended house purchase, and intended children -- "What's wrong with her staying at home if he says he can cover their expenses," they facetiously asked. (Um. Because the callers overestimate their own financial literacy, he actually makes concerningly little money, plus he wants to cover several large life events, plus she's only working for one or two years, plus it was only a suggestion! -- come on now.) The Ramsey Show features a disproportionately high number of stay-at-home wives -- and I'm pretty sure that's because it's so heavily marketed to fundamental Christians. Idk, it's like suddenly getting this glimpse into a foreign world, where women being financially dependent on their breadwinner husbands is not only normalised but idealised -- if you were a millionaire what would you do? Have your wife stay home and homeschool the kids in true "Christian teachings" so they don't have to be "poisoned by wokeness". Gosh, watching the people on this show sometimes is so fascinating.
So, I went into this book expecting to be clubbed over the head with that perspective. But, even still, I was surprised by how little this book had to do with financial planning and how much it seemed like proselytising. A heavy chunk in the middle of this book was all just scripture quotations -- and funnily enough, using the bible to justify why being wealthy is a good thing, a holy thing, ordained by god. The book also ends with a call to the readers to join their local churches, else our souls are damned etc.
I've also noticed that this book, the show, draws quite heavily on proselytising techniques for selling its financial system. The book included multiple stories of ordinary people, from different backgrounds, following the Ramsey method and now all being millionaires. There's a particular storytelling way that just reminded me of Christian miracle testimonials. And of course Dave celebrates them for staying true to the course in that compelling manner he has. The show also brings on ordinary people for a "debt free scream" -- they look just like you or me (although overwhelmingly white and Christian), they're bursting with excitement and praise for the Ramsey method, they're complimented to the high heavens by Dave and the hosts ("You're everyday heroes!"), and then the segment always ends with them letting out a "we're debt free!" scream -- just like the "Hallelujah! Your sickness has been healed! Praise the lord!" shouts you might hear in a Church congregation. It's all a bit cult-like tbh. Again, these techniques just make me wary.
Ultimately, I think the Ramsey method -- and Dave's communication style -- is really effective for speaking to people with severe debt, and giving them the kick up the pants to get out of debt. It's when you've hit neutral that I think you should look elsewhere for investment advice (diversify! as they say: diversify your sources of information!) -- I think it's a little ethically dodgy that the Ramsey team directs its followers to sign up to managed funds with their "SmartVestor Pros", with likely a kickback for the referral plus lifelong (higher) fund management fees. Dave's retort to the criticism that managed mutual funds underperform the market is just to "Not pick the ones that underperform and only invest in the ones that outperform, duh". Okay. Sure. If everyone could magically pick winners... -- He repeats that belief in this book btw: after giving the statistic that 70% of managed funds underperform, he says, "Well that means there's 30% that overperform so just pick those". He remains stubbornly confident in his point of view.
Ultimately, it doesn't matter. If you follow the Ramsey method and cross the $1m mark at retirement -- heck, you might even hit 2, 3, 5+ million -- it won't matter if you've lost hundreds of thousands in higher percentage management fees and underperforming funds. The point is to get out of debt and develop disciplined investing habits over decades of time. That underlying message can't be faulted -- but, bloody hell, there's just so much proselytising to wade through in this book.
February 19, 2022
The first 113 pages are the Dave Ramsey advice we all know and love. Significant time was spent detailing the difference between a millionaire and a billionaire. Many have childish assumption a millionaire has extravagant vehicles and PJs (that's private jet to the rest of us). They don't have these things or likely even desire them. Everyday millionaires are everyday people who want financial stability and take great care to maintain this stability. This book instills a strong focus on belief, not barriers. Social justice warriors often pedal hopelessness that everyday people cannot achieve any success.
The remainder of the book are the footnotes, introduction and summary of white paper on the National Study of Millionaires compiled by Dave's company. The white paper and appendices are included, so you can be a huge nerd and really drill into the details of the study if that is your thing.
You might not agree with everything Dave says or believes in politics or religion, but he advises with honesty and as someone who has done stupid things with money. He wants to show you how not to be stupid; but you have to do the work.
The remainder of the book are the footnotes, introduction and summary of white paper on the National Study of Millionaires compiled by Dave's company. The white paper and appendices are included, so you can be a huge nerd and really drill into the details of the study if that is your thing.
You might not agree with everything Dave says or believes in politics or religion, but he advises with honesty and as someone who has done stupid things with money. He wants to show you how not to be stupid; but you have to do the work.
February 2, 2024
3.5 stars - I’d say this book is a good one for those interested in money and learning more about overall wealth building. The book doesn’t deep dive into the actual steps, but more tells accounts of people who followed the steps and the outcome. The stories are sprinkled with facts based on Ramsey’s National Study of Millionaires.
I more enjoyed reading the actual study, which was included at the end of the book. After reading both the stories and the study, I do truly believe that with the right mindset and discipline anyone can become a millionaire.
The book had a lot of biblical references, which I think it could’ve done without, but it was interesting nonetheless. It’s clear Dave Ramsey is a devoted Christian and wanted to include his beliefs from that angle as well.
I’d be really interested in reading a similar book and study about millionaires in Europe and other parts of the world, as this study was conducted with participants living in the US.
I more enjoyed reading the actual study, which was included at the end of the book. After reading both the stories and the study, I do truly believe that with the right mindset and discipline anyone can become a millionaire.
The book had a lot of biblical references, which I think it could’ve done without, but it was interesting nonetheless. It’s clear Dave Ramsey is a devoted Christian and wanted to include his beliefs from that angle as well.
I’d be really interested in reading a similar book and study about millionaires in Europe and other parts of the world, as this study was conducted with participants living in the US.
April 30, 2022
I like this author and his message. I've listened to his radio show and I've read his books. Now with that little disclaimer out of the way, I can say I didn't care for this one. I'm not really sure who the target audience was on this one.
This short book contained how many books he has sold, testimonials about the author's system for building wealth from people who achieved their goal, a pitch to buy his daughter's book and a lecture on how millionaires are not the same thing as billionaires. I honestly felt like he thought his audience, namely me, was a little on the dense side. Maybe I am a little dense, because I actually finished this one. So 2 stars.
This short book contained how many books he has sold, testimonials about the author's system for building wealth from people who achieved their goal, a pitch to buy his daughter's book and a lecture on how millionaires are not the same thing as billionaires. I honestly felt like he thought his audience, namely me, was a little on the dense side. Maybe I am a little dense, because I actually finished this one. So 2 stars.
January 20, 2023
This was very informative, I enjoyed the read.
December 17, 2024
This book is extremely repetitive without actually giving much practical advice. Additionally, he spends half of the book proselytizing and arguing that you can only truly be rich if you accept god into your life… I also disagree with a bunch of his philosophy such as how those who are wealthier shouldn’t be taxed proportionally the same/more and that poverty is just a mindset… I’m still interested in reading his other books as those are supposedly more practical but would not recommend this one unless you are an evangelical Christian
March 5, 2025
2025 A book with a picture of the author on the cover
May 1, 2024
I’m totally a Ramsey follower. I love their principles and how they communicate how everyone can make these decisions to become financially free.
Read
May 2, 2023Turn your million-dollar dream into reality.
How come your paycheck slips through your fingers faster than sand through an hourglass? If only you were a millionaire, then life would be so much easier… But alas, you weren’t born rolling in dough. Making seven figures is nothing but a far-fetched fantasy. Or is it?
In this book Baby Steps Millionaires by Dave Ramsey, you’ll discover that hitting a net worth of one million dollars isn’t far-fetched at all. Many have done it before, and no, you don’t need to be blessed with any special advantage to do so.
If you’re ready to find out how to turn your financial situation around and get that seven-digit net worth, let's jump straight in.
---
Becoming a millionaire is well within your reach.
How many of your peers have told you that they’d be a millionaire by the age of 55? Not a single one? Well, that isn’t surprising. After all, it’s a common belief that becoming a millionaire is about as likely as finding a dodo bird in your backyard. Translation: it’s impossible.
But the truth is, hitting seven figures is actually very attainable, and all you really need to do is two things: change your belief and follow the Ramsey Baby Steps.
What do we mean by “change your belief?” Well, firstly you have to stop thinking that being a millionaire is getting to live the lavish life of Elon Musk and Jeff Bezos. Those two are billionaires, not millionaires, and yes, there is a world of difference between these two terms.
For starters, billionaires typically run at least one national company. Millionaires, on the other hand, are found in more common professions like engineer, accountant, and teacher, as reported by the National Study of Millionaires by the author’s company Ramsey Solutions.
Billionaires own multiple houses on sprawling estates and drive top-of-the-line car models. Meanwhile, millionaires have a house in your typical residential neighborhood and only two cars.
Billionaires go dining and shopping without asking for discounts. On the flipside, the Ramsey Solutions’ study found that most millionaires still use coupons.
See the gigantic difference? Millionaires are just as ordinary as you are, and if they could do it, there’s no reason why you can’t do it too.
Aside from drawing a clear line between millionaires and billionaires, part of changing your belief is also switching from a sense of helplessness to a sense of control. If you think that you can’t become a millionaire because you’re poor, an immigrant, a person of color, or buried in six figures of debt, then think again. Everyone faces their own set of challenges, but only those who take ownership of their life emerge to become millionaires.
In Ramsey Solutions’ millionaire study, not all of the 10,000 millionaires they surveyed come from white privileged families. Instead, they were composed of different races, education levels, and backgrounds. This just goes to show that no matter the kind of situation you’re in, it’s possible for you to reach millionaire status. You don’t need to graduate from an Ivy League, get an executive-level job, or have a six-figure household income.
What you need is to stop letting the odds hold you back, and start believing that you can and you will. Once you’ve done that, then you’re ready for the second step to becoming a millionaire: following the Ramsey Baby Steps to a tee.
---
Start the Ramsey Baby Steps by covering your debts.
Humans are impatient. You hate waiting for your meal to be served. You hate being stuck in traffic. You hate counting the days until Christmas. The same is true for building wealth. So if you want to have a million bucks, you’d rather take the fastest way to get there. Lucky for you, that’s what the Ramsey Baby Steps are.
The author claims that this seven-step plan is the quickest and most surefire way of helping you build that million-dollar net worth. It has already helped thousands of people in the last three decades, regardless of what their situation was when they first started. By following this process, you, too, can join the ranks of the many other Baby Steps Millionaires.
But don’t confuse this with overnight success like winning the lottery or acquiring an inheritance. The Ramsey Baby Steps won’t give you a millionaire status in one day. Care to guess how long it would take? Nope, not three years, not five years. Instead, expect your first million in an average of 17 years. Because the real surefire way of getting rich is to take it slow, one step at a time.
So what are the specific steps you need to take? Let’s dive in.
Baby Step #1 is putting away a starter emergency fund worth $1000. Think of it as your savior for those times when life throws a minor curveball your way. It’s best to get this settled ASAP to give you a sense of security and peace of mind as you power through Baby Step #2: eliminating debt.
This second step is all about climbing out of all your debt, except for your home mortgage. Allocate all your extra funds for this. Yes, we’re talking about your funds for nights out, vacations, and even investments. Anything that’s not in a retirement plan must go into paying your debt, so you can check this off your list in the quickest way possible. Tackle your debts using the snowball technique where you finish the smallest first before moving on to the bigger debts. And whenever you’re disheartened, just remember that if you believe that you can do it, then you can.
Baby Step #3 is upgrading your starter emergency fund into a fully-funded emergency fund. This means it can cover three to six months of your minimum living expenses in case you experience major setbacks like job loss and health emergencies. If you have a stable income, you can get away with saving only three months’ worth. If, however, you rely on commission or are self-employed, you’re better off saving six months instead.
Working your way through Baby Steps 1 to 3 typically takes an average of 2.5 to three years. But once you've done it, you'll be free to really grow your worth. Let's find out how.
---
Complete the Ramsey Baby Steps by investing long-term.
So you’ve sorted out your debts and saved for your emergency fund. Now it’s time to really build your fortune.
Baby Step #4 is taking 15% of your household income before taxes and placing that into retirement accounts. But how exactly? Your first priority is maximizing what your employer is putting into your 401(k). Say they offer a 5% company match, then you invest 5% of your pre-tax income into your plan, as well. After you maxed out your company match, move on to contributing to your Roth IRA. Finally, any amount left over from your 15% should be invested into a traditional work-sponsored tax-deferred plan.
When it comes to your investment portfolio, the author suggests equally allocating it into four types of mutual funds: international, growth, aggressive growth, and growth and income. Make sure to seek the guidance of an investment advisor to help you learn the ropes of investing. However, you don’t need to obsess about getting the best returns straight away because at the end of the day, what’s important is to put that money in and let time do the rest.
While you’re doing Baby Step #4, you should also work on Baby Step #5: starting your kids’ college fund using either a 529 college savings plan or an Education Savings Account (ESA). How much you put into it highly depends on your personal situation, but remember that your retirement plan always comes first. The fact of the matter is you’ll inevitably retire, but your kids, if you do decide to have them, may not even want to attend college, may choose to pay for it themselves, or may have completed college already. The bottom line is it’s totally okay not to have this fund completely full or even skip it altogether.
As you work on Baby Steps #4 and #5, you’re also simultaneously doing Baby Step #6: settling your remaining debt: your home mortgage. Whatever’s left after your 15% retirement fund and your kids’ college funds needs to go to your house payments right away. This will not only save you time but also interest. According to the Ramsey Solutions’ millionaire study, most millionaires pay off their home in an average of a little over 11 years instead of the typical 30, justifying the need for Baby Step #6.
After working relentlessly from Baby Step #1 to 6, you finally come to Baby Step #7: sharing your wealth with others. Take your family on vacations or treat a stranger to coffee. Whatever you do with your money now, you’ve earned it.
---
Baby Steps Millionaires are Ordinary People.
Over the last three decades, the Ramsey Baby Steps have turned several hundred people into Baby Steps Millionaires. And their stories are here to inspire you into achieving your first million, too.
One of those Baby Steps Millionaires is Tiffany. Before stumbling upon the author’s seven-step plan, Tiffany was a new single mom with two kids to feed and $60,000 of debt to pay off. She was living off of a $30,000 annual income that could only put ramen noodles on the table. It was admittedly a messy phase of her life, but Tiffany knew she had to get out of it and fast. So she decided to follow the Baby Steps, which eventually led her to a whopping net worth of $1.85 million two decades later.
Another single mom in the roster of Baby Steps Millionaires is Jackie. Growing up in a poor African-American family, Jackie had learned early on the importance of avoiding debt and working hard. So when she got to college, she made sure to minimize her student loan and work as much as she could to support herself. When her marriage ended a few years later, her first order of business was to get rid of all her loans and start fresh. She wasn’t even aware of the Baby Steps yet, but after discovering the seven-step plan, she realized she was making the right choices. She continued doing the remaining steps until she reached a net worth of $1.2 million at 49 years old.
Baby Step Millionaire Ben also grew up with the same principles as Jackie. At age 14, he was already working to earn his own money by mowing lawns. He saved enough from this business to max out the Roth IRA he opened in high school and also put himself through college without taking out a loan. When Ben got wind of the Baby Steps before graduating college, he found out he had already checked some of the steps from the plan. He worked on the rest of the Baby Steps right out of college, and a few years later, married his equally hard-working girlfriend Courtney. Together, they built their net worth to $1.7 million just before they hit the age of 40.
Rafael and JoBeth are another inspiring couple who became millionaires with the help of the Baby Steps. Rafael comes from the tiny country of El Salvador, where he, his parents, and his six siblings struggled financially. In search of a better life, his parents flew to the US and sent for them three years later. However, they weren’t exactly living the high life as immigrants. They still had to rely heavily on government assistance.
Fortunately, things started turning round for Rafael when he got into the US Army after high school. That’s how he met JoBeth, the daughter of another Army officer. During their marriage, they racked up all sorts of loans, from credit cards to home equity line of credit (HELOC). They were slowly getting buried in debt, but ten years later they came upon the Baby Steps. Now they are debt-free and their net worth is $1.1 million. Both of them are now aiming to retire in their early fifties.
These are just four inspiring stories of Baby Step Millionaires. Time to create your own.
---
Becoming a millionaire is just within your arm’s reach. It all starts with you believing that you can have a seven-figure net worth, and then following through with the Ramsey Baby Steps.
Baby Step 1 is to set aside $1000 into your starter emergency fund. Step 2 is to settle all your debts, except for your home mortgage. Step 3 is to save three to six months’ worth of emergency funds. Step 4 is to put 15% of your income into your retirement plan. Step 5 is to create your kids’ college funds. Step 6 is to fully pay off your mortgage. And Step 7 is to be generous with your wealth.
The Ramsey Baby Steps can empower you to change the course of your – and your family’s – lives, all while inspiring those in your community to reach for their own million-dollar net worth. Time to take that first step.
How come your paycheck slips through your fingers faster than sand through an hourglass? If only you were a millionaire, then life would be so much easier… But alas, you weren’t born rolling in dough. Making seven figures is nothing but a far-fetched fantasy. Or is it?
In this book Baby Steps Millionaires by Dave Ramsey, you’ll discover that hitting a net worth of one million dollars isn’t far-fetched at all. Many have done it before, and no, you don’t need to be blessed with any special advantage to do so.
If you’re ready to find out how to turn your financial situation around and get that seven-digit net worth, let's jump straight in.
---
Becoming a millionaire is well within your reach.
How many of your peers have told you that they’d be a millionaire by the age of 55? Not a single one? Well, that isn’t surprising. After all, it’s a common belief that becoming a millionaire is about as likely as finding a dodo bird in your backyard. Translation: it’s impossible.
But the truth is, hitting seven figures is actually very attainable, and all you really need to do is two things: change your belief and follow the Ramsey Baby Steps.
What do we mean by “change your belief?” Well, firstly you have to stop thinking that being a millionaire is getting to live the lavish life of Elon Musk and Jeff Bezos. Those two are billionaires, not millionaires, and yes, there is a world of difference between these two terms.
For starters, billionaires typically run at least one national company. Millionaires, on the other hand, are found in more common professions like engineer, accountant, and teacher, as reported by the National Study of Millionaires by the author’s company Ramsey Solutions.
Billionaires own multiple houses on sprawling estates and drive top-of-the-line car models. Meanwhile, millionaires have a house in your typical residential neighborhood and only two cars.
Billionaires go dining and shopping without asking for discounts. On the flipside, the Ramsey Solutions’ study found that most millionaires still use coupons.
See the gigantic difference? Millionaires are just as ordinary as you are, and if they could do it, there’s no reason why you can’t do it too.
Aside from drawing a clear line between millionaires and billionaires, part of changing your belief is also switching from a sense of helplessness to a sense of control. If you think that you can’t become a millionaire because you’re poor, an immigrant, a person of color, or buried in six figures of debt, then think again. Everyone faces their own set of challenges, but only those who take ownership of their life emerge to become millionaires.
In Ramsey Solutions’ millionaire study, not all of the 10,000 millionaires they surveyed come from white privileged families. Instead, they were composed of different races, education levels, and backgrounds. This just goes to show that no matter the kind of situation you’re in, it’s possible for you to reach millionaire status. You don’t need to graduate from an Ivy League, get an executive-level job, or have a six-figure household income.
What you need is to stop letting the odds hold you back, and start believing that you can and you will. Once you’ve done that, then you’re ready for the second step to becoming a millionaire: following the Ramsey Baby Steps to a tee.
---
Start the Ramsey Baby Steps by covering your debts.
Humans are impatient. You hate waiting for your meal to be served. You hate being stuck in traffic. You hate counting the days until Christmas. The same is true for building wealth. So if you want to have a million bucks, you’d rather take the fastest way to get there. Lucky for you, that’s what the Ramsey Baby Steps are.
The author claims that this seven-step plan is the quickest and most surefire way of helping you build that million-dollar net worth. It has already helped thousands of people in the last three decades, regardless of what their situation was when they first started. By following this process, you, too, can join the ranks of the many other Baby Steps Millionaires.
But don’t confuse this with overnight success like winning the lottery or acquiring an inheritance. The Ramsey Baby Steps won’t give you a millionaire status in one day. Care to guess how long it would take? Nope, not three years, not five years. Instead, expect your first million in an average of 17 years. Because the real surefire way of getting rich is to take it slow, one step at a time.
So what are the specific steps you need to take? Let’s dive in.
Baby Step #1 is putting away a starter emergency fund worth $1000. Think of it as your savior for those times when life throws a minor curveball your way. It’s best to get this settled ASAP to give you a sense of security and peace of mind as you power through Baby Step #2: eliminating debt.
This second step is all about climbing out of all your debt, except for your home mortgage. Allocate all your extra funds for this. Yes, we’re talking about your funds for nights out, vacations, and even investments. Anything that’s not in a retirement plan must go into paying your debt, so you can check this off your list in the quickest way possible. Tackle your debts using the snowball technique where you finish the smallest first before moving on to the bigger debts. And whenever you’re disheartened, just remember that if you believe that you can do it, then you can.
Baby Step #3 is upgrading your starter emergency fund into a fully-funded emergency fund. This means it can cover three to six months of your minimum living expenses in case you experience major setbacks like job loss and health emergencies. If you have a stable income, you can get away with saving only three months’ worth. If, however, you rely on commission or are self-employed, you’re better off saving six months instead.
Working your way through Baby Steps 1 to 3 typically takes an average of 2.5 to three years. But once you've done it, you'll be free to really grow your worth. Let's find out how.
---
Complete the Ramsey Baby Steps by investing long-term.
So you’ve sorted out your debts and saved for your emergency fund. Now it’s time to really build your fortune.
Baby Step #4 is taking 15% of your household income before taxes and placing that into retirement accounts. But how exactly? Your first priority is maximizing what your employer is putting into your 401(k). Say they offer a 5% company match, then you invest 5% of your pre-tax income into your plan, as well. After you maxed out your company match, move on to contributing to your Roth IRA. Finally, any amount left over from your 15% should be invested into a traditional work-sponsored tax-deferred plan.
When it comes to your investment portfolio, the author suggests equally allocating it into four types of mutual funds: international, growth, aggressive growth, and growth and income. Make sure to seek the guidance of an investment advisor to help you learn the ropes of investing. However, you don’t need to obsess about getting the best returns straight away because at the end of the day, what’s important is to put that money in and let time do the rest.
While you’re doing Baby Step #4, you should also work on Baby Step #5: starting your kids’ college fund using either a 529 college savings plan or an Education Savings Account (ESA). How much you put into it highly depends on your personal situation, but remember that your retirement plan always comes first. The fact of the matter is you’ll inevitably retire, but your kids, if you do decide to have them, may not even want to attend college, may choose to pay for it themselves, or may have completed college already. The bottom line is it’s totally okay not to have this fund completely full or even skip it altogether.
As you work on Baby Steps #4 and #5, you’re also simultaneously doing Baby Step #6: settling your remaining debt: your home mortgage. Whatever’s left after your 15% retirement fund and your kids’ college funds needs to go to your house payments right away. This will not only save you time but also interest. According to the Ramsey Solutions’ millionaire study, most millionaires pay off their home in an average of a little over 11 years instead of the typical 30, justifying the need for Baby Step #6.
After working relentlessly from Baby Step #1 to 6, you finally come to Baby Step #7: sharing your wealth with others. Take your family on vacations or treat a stranger to coffee. Whatever you do with your money now, you’ve earned it.
---
Baby Steps Millionaires are Ordinary People.
Over the last three decades, the Ramsey Baby Steps have turned several hundred people into Baby Steps Millionaires. And their stories are here to inspire you into achieving your first million, too.
One of those Baby Steps Millionaires is Tiffany. Before stumbling upon the author’s seven-step plan, Tiffany was a new single mom with two kids to feed and $60,000 of debt to pay off. She was living off of a $30,000 annual income that could only put ramen noodles on the table. It was admittedly a messy phase of her life, but Tiffany knew she had to get out of it and fast. So she decided to follow the Baby Steps, which eventually led her to a whopping net worth of $1.85 million two decades later.
Another single mom in the roster of Baby Steps Millionaires is Jackie. Growing up in a poor African-American family, Jackie had learned early on the importance of avoiding debt and working hard. So when she got to college, she made sure to minimize her student loan and work as much as she could to support herself. When her marriage ended a few years later, her first order of business was to get rid of all her loans and start fresh. She wasn’t even aware of the Baby Steps yet, but after discovering the seven-step plan, she realized she was making the right choices. She continued doing the remaining steps until she reached a net worth of $1.2 million at 49 years old.
Baby Step Millionaire Ben also grew up with the same principles as Jackie. At age 14, he was already working to earn his own money by mowing lawns. He saved enough from this business to max out the Roth IRA he opened in high school and also put himself through college without taking out a loan. When Ben got wind of the Baby Steps before graduating college, he found out he had already checked some of the steps from the plan. He worked on the rest of the Baby Steps right out of college, and a few years later, married his equally hard-working girlfriend Courtney. Together, they built their net worth to $1.7 million just before they hit the age of 40.
Rafael and JoBeth are another inspiring couple who became millionaires with the help of the Baby Steps. Rafael comes from the tiny country of El Salvador, where he, his parents, and his six siblings struggled financially. In search of a better life, his parents flew to the US and sent for them three years later. However, they weren’t exactly living the high life as immigrants. They still had to rely heavily on government assistance.
Fortunately, things started turning round for Rafael when he got into the US Army after high school. That’s how he met JoBeth, the daughter of another Army officer. During their marriage, they racked up all sorts of loans, from credit cards to home equity line of credit (HELOC). They were slowly getting buried in debt, but ten years later they came upon the Baby Steps. Now they are debt-free and their net worth is $1.1 million. Both of them are now aiming to retire in their early fifties.
These are just four inspiring stories of Baby Step Millionaires. Time to create your own.
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Becoming a millionaire is just within your arm’s reach. It all starts with you believing that you can have a seven-figure net worth, and then following through with the Ramsey Baby Steps.
Baby Step 1 is to set aside $1000 into your starter emergency fund. Step 2 is to settle all your debts, except for your home mortgage. Step 3 is to save three to six months’ worth of emergency funds. Step 4 is to put 15% of your income into your retirement plan. Step 5 is to create your kids’ college funds. Step 6 is to fully pay off your mortgage. And Step 7 is to be generous with your wealth.
The Ramsey Baby Steps can empower you to change the course of your – and your family’s – lives, all while inspiring those in your community to reach for their own million-dollar net worth. Time to take that first step.
February 24, 2024
I don’t agree on every Dave philosophy, but overall a good message. Need to make sure my dad never finds out I read this lol, don’t want to take the favorite daughter position from Liz.
June 5, 2023
I listened to this one on audiobook. Ramsey gave great financial advice throughout this book. However, I loved at the end he spent the last 30 minutes solidifying the Gospel. God want us to work hard to glorify Him, but at the end of the day we can’t take any of our earthly treasures to heaven. There’s something even better in store for us.
January 17, 2022
Same stuff from his previous books. Charts at the end were interesting ...
December 5, 2023
Explicit in measurable steps towards fiscal health and challenges to keep a person motivated. I encourage everyone to grasp and apply these steps outlined by Dave Ramsey and his team.
April 17, 2022
I discovered Dave Ramsey about 12 years ago, and his teachings changed my life. Within a year I was debt free and well on my way to building wealth. But life happens. Things happen. And I've gotten sidetracked from my baby steps. So I wanted to read this to remind myself of the steps, to regain focus, and to regain the mindset I need to attack Baby Step 6.
In this book Dave explains that becoming a millionaire is easily achievable. But it won't be a sprint but a marathon. He provides many examples from 'real' people. Telling their stories and their journeys to becoming a millionaire.
Dave also spends some time explaining the difference between millionaires and billionaires. And I think this is very valuable. As kids, we grew up thinking "I'm going to win a million dollars and live in a mansion" or something along those lines. But that's not really true. To have "mansion" money, you need to be a billionaire. A millionaire isn't going to cut it. A millionaire lets you live a comfortable upper-middle class life. You're probably in a normal house driving average cars. But you're debt free and financially secure for the rest of your life. Having the right 'goal' is important and I think it's good Dave focuses on this.
He also spends some time talking about God, faith, and giving. I appreciate how he ties positive wealth and God together. I also think that regardless of your religious views, that the message is still a good one. It is not evil to build wealth. And it's a blessing when you are able to use your wealth to help others.
The book is repetitious. Most of the principles in this book, we've already learned from previous books. But again, I read this for a reminder. I read this to regain my focus to finish the baby steps. And anyone who is struggling financially, I would recommend Dave Ramsey and his Financial Peace University.
In this book Dave explains that becoming a millionaire is easily achievable. But it won't be a sprint but a marathon. He provides many examples from 'real' people. Telling their stories and their journeys to becoming a millionaire.
Dave also spends some time explaining the difference between millionaires and billionaires. And I think this is very valuable. As kids, we grew up thinking "I'm going to win a million dollars and live in a mansion" or something along those lines. But that's not really true. To have "mansion" money, you need to be a billionaire. A millionaire isn't going to cut it. A millionaire lets you live a comfortable upper-middle class life. You're probably in a normal house driving average cars. But you're debt free and financially secure for the rest of your life. Having the right 'goal' is important and I think it's good Dave focuses on this.
He also spends some time talking about God, faith, and giving. I appreciate how he ties positive wealth and God together. I also think that regardless of your religious views, that the message is still a good one. It is not evil to build wealth. And it's a blessing when you are able to use your wealth to help others.
The book is repetitious. Most of the principles in this book, we've already learned from previous books. But again, I read this for a reminder. I read this to regain my focus to finish the baby steps. And anyone who is struggling financially, I would recommend Dave Ramsey and his Financial Peace University.
This entire review has been hidden because of spoilers.
February 6, 2022
I recommend you to save your money and just use Dave Ramsey free information online, start with: https://www.ramseysolutions.com/budge...
If you like it, continue reading more of his free stuff. If you don’t like it, stop reading. But don’t buy his book, you can invest those money instead.
I don’t feel anything of what he wrote is news, but I like his baby steps (see link above). This book on the other hand is a waste of your time. It is mostly testimonials. Actually it’s more like, Dave Ramsey write down other people stories to say how amazing his plan is, they are all hero’s, and also God will help out. A lot of the stories are great, but I wish it was more focus on how great those people are - they did it, with or without a god.
But God is big in this book, the last chapter is all God - how you should turn yourself to God. Know that you can follow the 7 steps regardless of you being a Christian or not, they’re good steps and decent life/money advise. However some of his points in this book is simply victim blaming.
Ramsey have received a lot of criticism for being ruthless, saying you shouldn’t go to college if you can’t pay for it cash or see the inside of a restaurant if you have debt (unless you work there to pay down your debt). There are other “nicer” people out there teaching the same thing without being mean about it.
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