Why Dave Ramsey’s Baby Steps Are Bullshit

Financially concerned people across social media have touted Dave Ramsey’s Baby Steps as the best method of getting out of debt and being financially secure, but I call bullshit on this for several reasons.

First, if you’re not familiar, here are the Baby Steps in a nutshell:

Baby Step 1: Save $1,000 for Your Starter Emergency Fund

Baby Step 2: Pay Off All Debt (Except the House) Using the Debt Snowball Method

Baby Step 3: Save 3–6 Months of Expenses in a Fully Funded Emergency Fund

Baby Step 4: Invest 15% of Your Household Income in Retirement

Baby Step 5: Save for Your Children’s College Fund

Baby Step 6: Pay Off Your Home Early

Baby Step 7: Build Wealth and Give

These are good pieces of advice, but Ramsey falls short on many fronts. Not the least of which is that Ramsey says you should do these steps in order until each one is complete, not work on more than one at once.

#1 Save $1000 for emergencies

Starting by saving $1000 is not a bad move, however, does Ramsey live in a Podunk little town where rent is only $400? The point of an emergency fund is to have enough money for your required living expenses if you are unable to bring in income for any reason.

When was the last time you had less than $1000 in mandatory expenses? The cheapest…