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 explaining when it is acceptable to pause the plan in case of emergencies.

Ramsey’s baby 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 funds, paying off the home early, and building wealth. However, Ramsey emphasized that households can press pause on the plan only in the case of a genuine emergency.

During a recent episode of The Ramsey Show, Ramsey and co-host Ken Coleman addressed a listener’s query about pausing the baby steps to afford a storm shelter for his Oklahoma home after a tornado scare. Ramsey advised against pausing the plan, stating that the family still had outstanding debt to pay off.

Ramsey’s advice highlights the importance of sticking to the plan even in challenging situations. He also advocates for the ‘debt snowball’ method, where individuals pay off debts from smallest to largest balances regardless of interest rates.

For Americans looking to retire early, Ramsey stresses the importance of paying off mortgages to achieve financial freedom. Clearing debts, especially mortgages, is crucial for those wanting to retire before the age of 65, as it can significantly impact monthly expenses.

Overall, Ramsey’s insights provide valuable guidance on managing finances and achieving long-term financial stability. His practical advice resonates with many seeking to improve their financial well-being and build wealth for the future.