Baby Steps Millionaires How Ordinary People Built Extraordinary Wealth

Book Summary

“Baby Steps Millionaires” is a personal finance book by best-selling author and financial expert Dave Ramsey. In the book, Ramsey shares stories of real people who have achieved millionaire status through the application of his simple, practical financial principles.

Ramsey outlines his seven “baby steps” to building wealth, which includes: starting an emergency fund, paying off all debt, building a fully funded emergency fund, investing 15% of income into retirement accounts, saving for children’s college education, paying off the home mortgage, and building wealth and giving back.

Throughout the book, Ramsey emphasizes the importance of living below your means, avoiding debt, and investing in a diversified portfolio of low-cost index funds. He also provides practical advice for budgeting, saving, and investing.

“Baby Steps Millionaires” is a great read for anyone looking to take control of their finances and achieve long-term financial security. Whether you’re just starting out on your financial journey or looking to take your wealth-building to the next level, Dave Ramsey’s simple, no-nonsense approach to personal finance can help you get there.

The Book in 3 Sentences

  1. Millionaires are often made, not born. The book argues that it’s not about being born into wealth or having a high-paying job, but rather about making smart financial choices and living below your means.
  2. The “baby steps” approach can be an effective way to build wealth. The book lays out seven baby steps, starting with saving $1,000 for an emergency fund and ending with building wealth and giving generously.
  3. Mindset is key. The book stresses the importance of having the right mindset when it comes to money, including being intentional about your spending and developing a long-term plan for building wealth.


Practical and actionable advice: The step-by-step approach offered by Dave Ramsey in the book is highly appreciable. The advice is practical and easy to implement in our lives. The real-life examples and stories that help to illustrate the concepts are commendable.

Encouraging and motivating: The book is encouraging and motivating, as it highlights how ordinary people can achieve financial success by taking small, consistent steps over time. You feel inspired to take action and make positive changes to your financial habits and mindset.

Focus on debt reduction and investing: Ramsey’s focus on debt reduction and investing is a common theme in the book. The advice on reducing debt and building wealth is practical and achievable.

How I Discovered It

As a best-selling author, financial expert, and radio host, Dave Ramsey has a large following, I discovered the book through his website.

Who Should Read It?

The book “Baby Steps Millionaires” by Dave Ramsey is primarily targeted towards individuals who want to build wealth and become financially independent. It is especially useful for people who are struggling with debt or living paycheck to paycheck and want to learn how to take control of their finances. The book can also be helpful for those who have already achieved some level of financial stability but want to continue building their wealth and securing their financial future.

How the Book Changed Me

After reading the book “Baby Steps Millionaires” I made a concentrated effort on what these steps meant for me and what I needed to do in order to become financially independent. I’m at step 4 right now and have the plan in place to go all the way to complete all 7 steps

 My Top Quotes

  • “It’s not what you make; it’s what you keep that determines your financial future.”
  • “If you will live like no one else, later you can live like no one else.”
  • “Good intentions are not enough. They’ve never put an onion in the soup yet.”
  • “The thing I have discovered about working with personal finance is that the good news is that it is not rocket science. Personal finance is about 80 per cent behaviour. It is only about 20 per cent head knowledge.”

Detailed Notes//Key Topics

  1. The myth of inherited wealth: The book challenges the popular belief that most millionaires are born into wealthy families, and shows how ordinary people can build wealth through hard work and smart financial decisions.
  2. Habits of everyday millionaires: Ramsey and his team conducted a nationwide study to identify the common traits and habits of everyday millionaires. These habits include living below your means, investing for the long term, and avoiding debt.
  3. The importance of education and mentorship: The book emphasizes the importance of education and mentorship in building wealth. It provides guidance on how to seek out the right mentors and develop the right mindset for success.
  4. The power of goal setting: The book emphasizes the importance of setting clear financial goals and working towards them consistently. It provides practical advice on how to set achievable goals, measure progress, and stay motivated.
  5. Investing for the long term: The book provides practical advice on how to invest for the long term, and build a diversified portfolio that can weather market volatility. It emphasizes the importance of avoiding get-rich-quick schemes and focusing on sound, time-tested investment strategies.

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