From Baby Steps to Real Wealth: Why I Outgrew Dave Ramsey (But Still Thank Him)

Woman embracing nature.

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There was a time when Dave Ramsey’s voice felt like a lifeline. I needed clarity. Structure. Certainty. And he delivered. I have bought several of his books (like 'Baby Steps Millionaire'). They work. LSH has tools that can help readers and users of Dave Ramsey e.g., 'How long will it take me to save enough for Baby Step 1?'

In a world of conflicting financial advice, Ramsey offered rules. Not theories. Not speculation. Just action. Very clear rules, black and white thinking:

• “Save $1,000.”

• “Cut up the cards.”

• “Pay off your smallest debt first.”

• "Live on rice and beans".

  
  

Here is a summary of the Baby Steps:

Summary of the 7 Baby Steps. From Ramsey Solutions - here.

For someone looking to get unstuck — it worked. It got me moving. It got me believing I could take control.

But here’s what I realized later…

Ramsey provides a powerful starting point — not the be-all and end-all. Was the Baby Steps plan what I needed to keep growing?

His method is built for stability, not for scale. And once I moved out of survival mode into creation mode, the cracks began to show.

• His disdain for all debt ignores strategic leverage and business building.

• His no-investment-until-you’re-debt-free rule costs people years of compound growth.

• His one-size-fits-all approach doesn’t adapt to entrepreneurs or high-growth paths.

  
  

I didn’t reject him. I evolved.

The Evolution: 10-20-70

Out of that evolution came a new framework — one that I use now, and one I teach others:

10% Save. 20% Grow. 70% Live. The full 10-20-70 plan helps you initially build wealth and crush debts. It can be found here.

The summary:

• 10% to build margin — emergency funds, peace of mind, and optionality. Your savings first hit $1,000, then you can build up to 6 months of expenses. You put aside 10% every time you get an income.

• 20% to pay off debt, invest, and expand wealth. This growth of cashflow builds more flexibility and freedom. You can use the snowball or the avalanche methods.

• 70% for your life: bills, needs, joy, wants, giving. Giving can be built in from the beginning.

You pay yourself first, whilst paying off debts, and get to decide what's important to spend on. Build wealth, stress less, and crush debts.

Why I’m Still Grateful to Ramsey

I’ll always appreciate what his framework did for me:

• It gave me momentum to get my finances handled.

• It gave me rules when I was drowning in worry.

• It gave me hope when I wasn’t sure if I could get ahead.

He taught me to value behavior over brilliance. That wealth isn’t a trick — it’s a series of consistent choices. I just chose to keep going, beyond the original script.

From Stability to Scalability

Ramsey is great for getting out of a hole. But once you’re on level ground, you need tools to build yourself— not just survive.

That’s where LSH (Little Success Habits) comes in. The poet Johann Wolfgang von Goethe said it well.

“Before you can do something you must first be something.” – Goethe

We don’t just teach rules. We focus on habits, systems, and personal growth. We don’t just tell you to cut expenses — we help you become a different person. Once you embody a new you, you will have new results. We don’t just reduce stress — we design lives of purpose, freedom, and intentionality.

For example, by following the 10-20-70 plan, I know that I am saving and building my 6-month fund, and reducing debts. I am becoming a person who always enjoys having more than I spend, which allows me to invest more.

Final Thought

If you’re in the beginning stages, Ramsey might be exactly what you need. He has helped millions get out of debt. His plan works really well, and he is also focused on the mindset rather than the mechanics of money.

If you’ve been there and want to grow, it’s okay to outgrow him. It's great if the steps work for you and you have followed everything he highlights to a T. Certainty and rules got me started. Strategy and habits are taking me forward. And habit by habit, real wealth is being built.

To your success.