Step 7: Build Wealth and Give


To move on to the final step, step 7, it’s important that you’ve completed the above prerequisites.

Dave Ramsey’s 7 Baby Step Plan

Step 7 – Build Wealth and Give

This is the last final step in Dave Ramey’s 7 Baby Steps Financial Plan.

At the start of this step, your financial situation should look like this:

  • 100% debt-free (including your house)
  • Have a 3 – 6 emergency fund
  • Saving 15% of your income into retirement accounts
  • And saving for your kids college fund (if you have kids)

Since you’re debt-free, all of your income is automatically wealth building, albeit with some methods growing wealth faster than others (Investing money into retirement accounts vs in a savings account).

In the Dave Ramsey plan, retirement investing should be capped off at 15% max. And if you have kids, you can use the College Savings Calculator to estimate what you’ll need to save for your kids college.

When those things are taken care of, Step 7 encourages you to continue building wealth and also giving some of that wealth to a cause you care about.

To continue building wealth, stick to your 15% plan of funneling 15% of your income into your retirement accounts. In my opinion, that’s the easy part. You should have unwavering discipline embedded into your brain by now. No amount of novel temptation can throw you off this path.

The other part of this step is to give.

The giving part of this step is one in which you can give your money to a person or cause that you care about. The act of giving is a generous and rewarding one. Whether you choose to leave an inheritance to your partner or children, choose to give to a charity/organization whose mission you believe in and want to fund, or both! 

The best part about this step is that you are financially stable enough to help who, what, and where you can.

Does your mom have a bit of debt that you want to pay off? Is your brother in need of financial assistance to help pay off his student loans? Maybe you want to donate some money to education and health support services.

Whatever it is, you now are in a financially secure enough place to give without affecting your financial health.

I’m personally not at this step yet but it’s a goal that I am actively working toward. 

If you’ve achieved this goal, great! It’s pretty cool to know you’re here and that you’ve achieved so much. It brings me great happiness to know you’ve turned your life into a stable, rewarding one. And I hope you continue to keep going.

Wishing you health, wealth, and perseverance to keep doing what it takes to reach your financial goals.

Connor Ocampo