Last, but certainly not least, Dave Ramsey's Baby Step Number 7 is the freedom from debt to be able to build your wealth and give back! You are out of debt and have already started building up your retirement, so let's continue building up your wealth and live generously!
As we discuss the final Baby Step, you have essentially paid off your debts, saved three to six months worth of expenses, are saving for your retirement and your children's higher education, and you have paid off your mortgage. With no debts, you have the freedom to truly use your hard earned dollars to be able to live and give like no one else!
This step is the most fun!
Now it's time to live and GIVE like no one else! This step is where you keep building wealth and become insanely generous. Imagine what it would feel like to be able to leave an inheritance for your kids and their kids. Imagine how generous you could be to those who are in need. That’s all possible now because you had discipline for a few years. Your focus and sacrifice got you here. You've lived like no one else, and NOW it's time to live and GIVE like NO ONE ELSE.
Even in Baby Step 7, you should continue setting goals and budgeting each month. Max out your 401(k) and Roth IRAs so you can continue to live and give like no one else—even in retirement!
Here is where you start exploring if a real estate investment is part of your plan, or if you'd like to set up any kind of scholarships and donations to help change lives. It's not just about how you can live like no one else, it is also about how you can make an impact on others!