What Would Dave Ramsey Say?
Enter your numbers and get the radio-show treatment: which Baby Step you're on, where he'd yell, and what he'd have you do next.
Your numbers vs his lines
Each rule in its own unit, with his targets as ticks. Green passes, gold is close, red fails: the same calls as the cards above.
What he'd have you do next
In Baby Step order. He does not let you skip one.
The rules this tool applies
The 7 Baby Steps
1) $1,000 starter emergency fund → 2) pay off all non-mortgage debt smallest-to-largest (the snowball) → 3) grow the fund to 3–6 months of expenses → 4) invest 15% of income for retirement → 5) save for kids' education → 6) pay off the house early → 7) build wealth and give.
His other rules used here
Housing should stay at or under 25% of monthly take-home pay. No credit cards, ever, pay cash. Debt snowball over avalanche because behaviour beats math.
How the numbers work
Expenses are not asked for. The tool takes them as 75% of monthly take-home pay, so emergency months = fund ÷ (0.75 × take-home). On the default $4,800 take-home that is $3,600 a month of expenses: $10,800 for 3 months, $21,600 for 6.
Housing = monthly housing cost ÷ monthly take-home. Retirement is a share of gross household income, so in dollars it is income × share ÷ 12: 15% of $75,000 is $937.50 a month.
Baby Step 5 is for parents. With no kids, turn the education switch on so the ladder moves past it.
Score = (step − 1) ÷ 6 × 80, rounded, then +10 when housing is at or under 25% of take-home (−10 when over) and +10 with 6 or more months saved, held between 0 and 100. The gauge colour follows the step, like the verdict: red on Baby Steps 1–2, gold on 3–4, green from 5.
The checkpoint bars make the same calls as the cards. Green passes his line. Gold is close: the $1,000 starter fund but under 3 months, 8–15% invested, or housing at 25–32% of take-home. Red fails. The bars stop at 9 months, 30% and 50%; the figure above each bar is always your own. Figures show one decimal and are never rounded onto a line you have not crossed: 2.97 months shows as 2.9, and housing at 25.04% as 25.1%.
Where mainstream advice disagrees
The snowball costs more interest than the avalanche (compare both here); many planners are fine with responsible credit card use; his 12% return assumption is far above FP Canada's planning guideline for stocks, 6.3–6.6% a year before fees.
The fine print
This is an educational parody applying Dave Ramsey's well-documented public philosophy to your numbers. All verdict lines are paraphrases in his style, not real quotes. Not affiliated with or endorsed by Dave Ramsey. For actual advice, talk to a licensed professional.
Common questions
What are Dave Ramsey's 7 Baby Steps?
$1,000 starter emergency fund; pay off all non-mortgage debt with the snowball method; save 3-6 months of expenses; invest 15% of income for retirement; save for kids' education; pay off the home early; build wealth and give.
Does the debt snowball or avalanche save more money?
The avalanche (highest interest rate first) always saves more interest mathematically. Ramsey prefers the snowball (smallest balance first) because quick wins keep people motivated. Both beat minimum payments by years.
Is 15% enough to save for retirement?
15% of gross income invested consistently from your 30s is a solid baseline, but the right number depends on your start age and goals, so run a full projection with a retirement planner.