Finance guru Dave Ramsey explains when you CAN pause his famous ‘seven baby steps’ plan to becoming rich

Finance guru Dave Ramsey, known for his ‘seven baby steps’ plan to financial freedom, has recently made headlines by revealing when it is acceptable to pause the plan in case of emergencies. Ramsey’s steps include saving $1,000 in a starter fund, paying off all debt except the home, saving for emergencies, investing in retirement, saving for children’s college fund, paying off the home early, and building wealth.

During a recent episode of The Ramsey Show, Ramsey emphasized that pausing the plan is only acceptable in genuine emergencies. He cited examples such as unexpected car repairs or preparing for a new baby as valid reasons to temporarily halt the baby steps. However, Ramsey cautioned against using minor reasons as excuses to deviate from the plan.

One listener sought advice on pausing the plan to invest in a storm shelter after a tornado scare in Oklahoma. Ramsey advised against it, urging the listener to prioritize paying off existing debts before making additional investments. Ramsey’s cohost, Ken Coleman, suggested finding alternative ways to raise funds for the storm shelter without pausing the baby steps.

Ramsey’s philosophy revolves around financial discipline and prioritizing debt repayment to achieve long-term financial stability. He also advocates for the ‘debt snowball’ method, where individuals pay off debts from smallest to largest regardless of interest rates. Additionally, Ramsey stresses the importance of paying off mortgages early for those looking to retire before the age of 65.

Overall, Ramsey’s guidance on when to pause the baby steps plan serves as a reminder to individuals to assess their financial priorities and make informed decisions during emergencies. His practical advice continues to resonate with followers seeking financial independence and wealth-building strategies.