Baby Steps Millionaires by Dave Ramsey: Review and Summary

Baby Steps Millionaires by Dave Ramsey

What a title Baby Steps Millionaires! The gilded host of the Ramsey show returns with a series of ideas. He explains how ordinary people build extraordinary wealth and you can too. In this review of Baby Steps Millionaires, I’m going to summarize the book. I’m going to lay out my thoughts on each chapter. So, let’s go and discuss the book summary of Baby Steps Millionaires by Dave Rumsey.

Review of Baby Steps Millionaires by Dave Ramsey

Chapter 1

Can anyone become a millionaire?

There are stories in this chapter of people in terrible situations. One couple was over three hundred thousand dollars in debt. What I loved about that story is that they were so busy paying off their debt that they didn’t even realize how much their assets were growing. He said that the shortest way to get from where you are now to success is by submitting yourself to the best practices of the thing that you want to do. Well, whether it’s parenting, marriage, weight loss, house construction professional development, and of course wealth building. It’s a book about hope and belief about statistical proof and taking realistic steps and building wealth. Furthermore, it’s straightforward and practical.

Chapter 2

What is a baby steps millionaire?

Dave Ramsey in this book really seems to have grasped a passion for storytelling to get his points across. This is something that more and more authors nowadays are adopting. Ramsey defined in this chapter the word ‘millionaire’. An only definition is a person with a net worth of one million dollars or more. That means that it’s not a feeling, it’s not how much you make, it’s not a theological discussion, it’s not a political statement and it’s not your father-in-law‘s opinion. It’s what you own minus what you owe. And yes, a million dollars may not be enough. It may not be what it used to be. However, it’s still a million dollars.

Fun fact

A study of over 10,000 people (which by the way, this book references this study so many times and by the end of the book you’ll really understand the significance of the study) concluded that the average amount of time it takes to become a millionaire is 17 years. You also hear about what to do to get out of debt the three baby steps. If you will step four through seven, are about how to become a millionaire from being zero in debt.

Chapter 3

How to become a baby steps millionaire?

This is step four through seven. This is like the meat and crux of the book because the first three steps are like a hundred-meter dash and the rest of the steps are like the rest of the marathon. Ramsay advises putting money into an index fund and forgetting about it. But the most important part is actually investing. I love his philosophy on investing advisors. Because he says that you should let them help you. And you should let them guide you. However, you shouldn’t let them make decisions for you.

Chapter 4

A millionaire is not a billionaire

From here to the end of the book is a lot of like philosophy. It’s not the type of philosophy that’s just like ‘Why are we here. I’m not sure. I have to figure out why we’re here’. This is really for anyone who hears the previous parts of the book and thinks this is literally impossible. ‘I’m not doing this. This is insane and stupid and Dave Ramsey sounds like a crazy little nut job psycho. I’m incapable and it sounds humiliating and ridiculous’. So, no. A millionaire does not live the same type of life as Jeff Bezos, Elon Musk, or Bernard Arnault. Most millionaires live in a 21 to 2600 square foot home. They mow their lawn. Their vehicles are paid off and they still look for coupon codes and discounts when they plan for vacations.

 A million is one thousand time one thousand, a billion is one thousand times one million. A billionaire has 1000 times more wealth than a millionaire. So, if you have 10000 dollars you are 10 times closer to being a millionaire. Then a millionaire is to be a billionaire. This chapter was helpful and unique because there are so many misconceptions about millionaires and what kind of lifestyles they live.

 I’m not a millionaire so I wouldn’t know from my own experience but I have worked with and spoken with some millionaires. But 90 of the millionaires in the Ramsey solution study that I mentioned earlier were self-made not inherited. 70 of the Forbes billionaires list were self-made. Ramsay even compares millionaire versus billionaire.

Chapter 5

Beliefs versus barriers

This is the chapter that everyone on audible was saying has huge audio issues and overlap bugs. I have to say that I heard none of these at all and I have no idea what these people are talking about. But, here’s one part that stood out. There are a lot of problems in our system. Sexism is real, racism is real, education access is unequal, broken dysfunctional families are the norm. But the starting line is not the question. The only question is, are the problems big enough to hold you back? Are they big enough to keep you from winning? If you believe the system or the man is holding back the cards and there’s no possible way to win then you won’t engage in the sacrificial behaviors required to win.

That study by the way revealed that the typical everyday millionaire comes from literally every possible background, race, creed, color, and national origin. They are not all middle-aged white guys hanging around coming from privileged homes. As far as the occupation goes, the five most common millionaires today you know what occupations there are from? One to five:

  1. Engineering
  2. Accounting
  3. Teaching
  4. Management
  5. Law

When it comes to millionaire’s titles and career paths don’t really mean anything. But jumping further down this path of every color, race, creed, origin, everything like that, 40 percent of fortune 500 companies were founded by immigrants or the children of immigrants. Almost half of them. Really think about that. Those statistics from the study are mouth-watering and there’s so many of them in the book

Chapter 6

The quickest way to a million

When it comes to getting rich quick- one word: ‘Don’t’. Based on lotteries, big-time one signature contracts, and buy and hold and volatile investments, it sounds like the quickest right way to a million dollars is just not too fast. When lots of money comes into your life too quickly, a lot of problems can occur. As most of us grow our wealth, we’re growing ourselves spiritually and emotionally. And this simultaneous growth protects us from growing our character, allows our wealth to not get so big that it crushes us.

Chapter 7

Will wealth ruin my kids?

This is something I could probably write several posts on it. It is kind of piggybacks. Money is neutral and it amplifies who you are. So, in the book Dave Ramsey goes over five money smart behaviors to teach your kids.

 As they are aging and for anyone curious, Dave Ramsey’s been doing this for 30 years and he says that 100 of addicts end up broke without treating their addictions which makes sense. He even said that trust fund babies can manage wealth with the right guidance. Obviously not, if they’re babies but you know people who were babies at some point and you know what I mean. But it’s pretty astounding after the seven steps in this book what myths he busts and how to like these were so straight to the point. Furthermore, they weren’t bitter or anything like that.

For more information on how to raise your kids to be financially responsible, you may want to check out Smart Money Smart Kids.

Chapter 8

Wealth and the wealthy are not evil

I love this chapter. In the beginning, it’s super capitalistic. He says that making money is moral as long as it’s not selfish and greedy. What’s interesting is that this is the same reasoning you’ll find in the bible. Ramsay is a man of evangelical faith and yes he quotes the bible a few times in the book.

 In these reviews, we have something that we call the religiosity scale from one to ten. This book is a two, maybe light three. The most religion-based chapter is this one and the next one going deeper into. What the bible would consider the rights and wrongs, perhaps of gathering and saving up your resources and how you use them later on. But without this chapter and the rest of the book, I would say it’s like a low two or maybe a one.

Chapter 9

Baby steps millionaires in every neighborhood

I could not count on two hands how many stories you hear in this book of people who become millionaires and end up donating tons and tons and tons of money to charities. This chapter was like a beautiful way to end the book though, discussing the potential of everyone to become a millionaire.

So, this was my review of Baby Steps Millionaires by Dave Ramsey. I hope you enjoyed the review. For more summaries and reviews, visit our website.

Note: Must read Summary of Book Zero to One by Peter Thiel

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