Dave Ramsey’s Baby Step 7 – Build Wealth and Give

by Hank Coleman

Total Money Makeover - Baby Step 6I’ve written extensively about Dave Ramsey’s baby steps here on Money Q&A. You can see my overview of Dave Ramsey’s baby steps system from his book, The Total Money Makeover. There are seven baby steps that you should follow in order that will lead you to financial peace that he discusses in his book which is one of the Top Ten Personal Finance Books of all time that you should be reading. Dave Ramsey’s baby steps are…

Baby Step 1 – $1,000 Emergency Fund
Baby Step 2 – Pay Off All Of Your Debt With A Debt Snowball
Baby Step 3 – Fully Fund Your Emergency Fund
Baby Step 4 Save 15% Of Your Income For Retirement
Baby Step 5 – Save For Your Children’s College Education
Baby Step 6 Pay Off Your Mortgage Early
Baby Step 7 – Build Wealth And Give

The seventh and final baby step in Dave Ramsey’s The Total Money Makeover is to build wealth and give. Here’s a breakdown of baby step 7.

Dave Ramsey’s Baby Step 7 – Build Wealth and Give

Winston Churchill once said, “We make a living by what we get, but we make a life by what we give.” In other words, trying to make money so we can get by and afford the things we need and want is a normal part of living, but for a truly meaningful life, giving to others can be transformative.

Ultimate Checklist for Your Finances

Take back control of your finances!

Get a FREE checklist for the money moves to make in the New Year.

Also get new articles, advice, and tips delivered right in your email inbox with our newsletter!

Dave Ramsey’s Baby Step 7 - Build Wealth and Give

The point of building wealth isn’t just to stockpile enormous amounts of money for your own benefit. Instead, building wealth should incorporate more charitable giving to help you leave a positive legacy in your community and the world at large. Nobody will remember much about your investments when you pass away, but many people will remember how you donated time and money to needy individuals and organizations. I’ve also talked multiple times about why I’m a big fan of giving back to your alma mater

If this sounds like a legacy you’d like to leave behind, here are a few tips for building wealth and giving back to others who truly need it:

Giving Brings Happiness

Did you know that Harvard University researchers found that money can buy happiness? Interestingly enough, this psychological study found that increased rates of happiness were expressed primarily by folks who had given money to others, rather than using that money on themselves.

Even instances of giving as little as $5 to someone else showed a small boost of happiness and well-being for the giver, which means that giving money to others who need us could be a win-win situation.

Find Charities to Support

Dave Ramsey’s Baby Step 7 - Build Wealth and GiveDonating to charities is one of the many gifts that keep on giving. Not only can you access the psychological (increased happiness) and financial benefits (tax deductions), but you’ll also be leaving a positive legacy with some of your most cherished causes.

Whether you want to support education by donating to your alma mater, improve the quality of life for animals in need by donating to wildlife protection organizations or local animal shelters, or finance scholarships for lower-income children in your community to attend college, there are thousands of different charities that could use your help.

To determine which charities are the most legitimate and helpful for the recipients of their items and services, be sure to research different organizations on Charity Navigator before making a sizable donation. This website rates charities based on their financial efficiency (e.g., does more donation money go towards charity administrators or actual people, animals, and environments in need?), transparency and accountability (e.g., do they publish records of their donations and administrator pay?), and available programs. 

Writing a Will

Make sure that you have a will. You want to ensure that your heirs distribute your wealth exactly how you want. Many people seem to think they don’t need a last will and testament, but this legal document is crucial for ensuring your money is distributed exactly as you want it to be after your passing. With this document, you’ll be able to determine who will execute your will, rather than letting the courts decide.

Another advantage is that you can specify who gets what of your personal property and real estate holdings, which ensures you can give the highest value items and properties to people who you believe truly deserve them.

There’s nothing wrong with wanting a better life for yourself and your family. Pursuing higher pay and better investments can bring you many benefits. But, once you attain a higher standard of living, it’s important to give back to those who truly need.

Building wealth and giving back to your community is a popular money habit among the wealthy and middle class alike. You’ll not only secure a financially stable future for your family, but you’ll also develop a long-lasting, honorable legacy among your favorite charitable causes. By donating what you can to ensure other people, animals, and other parts of the world can thrive, you’ll be remembered in a much more favorable light than the other guy who hoarded all his funds until the day he died.

Which of Dave Ramsey's Total Money Makeover baby step are you on?Click To Tweet

The Total Money Makeover and Dave Ramsey’s baby steps have helped millions of people get out of debt. Building wealth and giving to charity is one of the final key pieces of the puzzle.

Baby Step 1 – $1,000 Emergency Fund
Baby Step 2 – Pay Off All Of Your Debt With A Debt Snowball
Baby Step 3 – Fully Fund Your Emergency Fund
Baby Step 4 Save 15% Of Your Income For Retirement
Baby Step 5 – Save For Your Children’s College Education
Baby Step 6 Pay Off Your Mortgage Early
Baby Step 7 – Build Wealth And Give

What about you? Which baby step are you on? How do you like to build wealth and give to charity?

myFICO Score Watch Trial

About Hank Coleman

Hank Coleman is the founder of Money Q&A, an Iraq combat veteran, a Dr. Pepper addict, and a self-proclaimed investing junkie. He has written extensively for many nationally known financial websites and publications. Hank holds a Master’s Degree in Finance and a graduate certificate in personal financial planning. Email him directly at Hank[at]MoneyQandA.com.


Hank Coleman has written 578 articles on Money Q&A. Learn more about Money Q&A on Twitter @MoneyQandA and @HankColeman.


Subscribe To Money Q&A

If you want to learn more about taking back control of your money please subscribe to Money Q&A’s RSS feed or via email to receive all the latest articles! You can also subscribe to our Free Weekly Newsletter.

{ 0 comments… add one now }

Leave a Comment


Previous post:

Next post: