Live and Give Like No One Else

What’s Life Like on Baby Step 7?

Frequently Asked Questions

How do I get into real estate investing?

Here’s how to approach real estate investing the Ramsey way:

• Pay cash only. Never borrow or use debt for investment properties.
• Keep your emergency fund separate from your real estate money.
• Do your homework. Research your local market, know what it takes to be a landlord, and be ready for property repairs and tenant challenges.
• Don’t go all in. Diversify your investments and keep some in mutual funds.
• In real estate, money is made at the buy, so make sure you’re getting a deal.

What do I do when I’ve maxed out my Roth and traditional IRA contributions?

Maxing out your Roth IRA and 401(k) every year puts you in the top tier of retirement savers. So what’s next? Here’s how to keep building wealth—the Ramsey way:

1. Invest in a taxable brokerage account.
   Now that your tax-advantaged options are maxed out, open a regular (taxable) investment account. Stick with growth stock mutual funds to build long-term wealth. There are no annual limits, and you still benefit from compound growth.
2. Continue to avoid debt.
   Don’t borrow to invest. Always use cash for additional investments.
3. Consider an HSA.
   If you have a high-deductible health plan and qualify, max out a Health Savings Account (HSA). It’s triple tax-advantaged and can double as a powerful retirement tool.
4. Look at paid-for real estate.
   If your home is paid off and you’re interested in real estate, go for it—but only with cash. Never finance investment properties.
5. Keep increasing your generosity.
   As your wealth grows, so does the potential impact you can make through giving.

You’ve done the hard work. Now keep building—and use your wealth to change lives.

How do I teach my kids about money?

Your kids are learning about money—even when you’re not teaching it. And our toxic money culture teaches debt.

From cereal boxes to toys with mini credit cards, companies are targeting your kids early. If they win your child’s money habits now, they win for life. But not on your watch.

You’re the parent. Your home is the training ground for truth. So be hands on and intentional.

Here’s how:

Start with work.
No free money. Commission beats allowance—every time. Work, get paid. Don’t work, don’t get paid. That’s real life.
Teach the basics early.
Financial Peace Jr. helps you teach kids (ages 3–12) how to save, spend and give on purpose. 
Let them see you budget.
They’re watching. When they see you build and stick to a plan with EveryDollar, they’ll learn that money follows a plan, not feelings.
Talk money with teens.
At this point, it’s time to prepare your kids to manage funds well as they start their first jobs and get ready for college. Help them set up an EveryDollar budget and take them through Foundations in Personal Finance if their high school doesn’t offer it. 

You’re shaping how your kids handle money for the rest of their lives. Teach it on purpose. Don’t let America’s toxic money culture do the job for you.

Should I keep working with a financial advisor?

Yes. Baby Step 7 is one of the best times to keep a financial advisor in your corner.

You’re building wealth on purpose now. And a great pro helps you stay focused, calm and intentional.
But choose wisely.

You want someone who will equip you to win. Someone who explains your options clearly and celebrates your wins. Not someone pushing products you don’t need.

As your wealth grows, so does the complexity: bigger investment moves, tax strategy, real estate decisions and giving plans. A solid advisor helps you navigate all of it with wisdom—not hype.

This isn’t about being told what to do. It’s about having a guide who helps you change your family tree and leave a lasting legacy.

Need a coach in your corner? An investment pro can guide you forward.

What kind of legacy planning should I do now?

Baby Step 7 is the time to get intentional about legacy. You’ve worked hard to build wealth. Now make sure it’s protected and passed on with clarity.

Start with the basics:

• Make or update your will.
• Name guardians if you have kids.
• Work with an estate-planning attorney you trust.

Once you have more than $1 million in assets, a trust may help simplify things for your family and stretch your generosity further. That’s a conversation worth having.

Legacy planning isn’t just paperwork—it’s stewardship. You’re deciding how your money will keep making an impact when you’re not around. So don’t wing it. Work with a pro who shares your values, explains things in plain English, and helps you make decisions that reflect your heart.

How do I help loved ones without enabling them?

Generosity is one of the best parts of Baby Step 7, but you need to have boundaries.

You can help someone you love without becoming their safety net. Start by offering guidance. Share the Baby Steps, and help them set up an EveryDollar budget. That kind of help empowers them to make a change and keep moving forward.

If you do give money, make it a gift—aka not a loan. And only if the gift won’t wreck your own progress.

Be clear about your expectations, and don’t budge. You’re helping them move forward—which is a good thing—but they have to learn from their mistakes. Enabling simply keeps people stuck, while healthy generosity brings hope, dignity and direction.

In Baby Step 7, your goal is to lift people up and point them toward freedom.

Do I need to adjust my insurance?

Yes, but don’t drop your guard just because you’ve built wealth. You’ll need to protect what you’ve worked so hard to create.

Here’s what to keep (and when):

• Term Life Insurance
  Keep it as long as someone depends on your income, especially if you have young kids.
• Long-Term Care Insurance
  If you’re 60 or older, this is a must. It protects your nest egg from the high cost of nursing home or assisted living care.
• Home and Auto Insurance
  Don’t settle for the minimum. As your wealth grows, raise your liability limits so one wreck or accident doesn’t derail your progress.
• Umbrella Insurance
  This is a must in Baby Step 7. It gives you an extra $1 million+ in liability protection on top of your home and auto policies. The more wealth you have, the bigger a target you become. Make sure your coverage keeps up.
• Health Insurance
  Medical bills can destroy even a strong financial plan. Keep solid coverage in place, no matter what Baby Step you’re on.
• Medicare
  Near 65? Medicare becomes your main coverage. You just need to determine which part you need (A, B or D plus a potential supplement). Enroll at 65 and work with a pro to pick the right plan.
• Disability Insurance
  If you’re still working and rely on your income, keep disability insurance. If you’re fully retired, you probably don’t need it anymore.
• Identity Theft Protection
  Protect your identity and credit just like you protect your wealth. It’s worth it.

Heads up—you might eventually become self-insured but only when you can absorb a major hit without wiping out your net worth. Until then, review your insurance yearly so your coverage grows with your wealth.

Are there still financial risks in Baby Step 7?

Absolutely. Baby Step 7 brings freedom—but it also brings new risks if you’re not careful.
The biggest threats to your wealth now are subtle but can add up big time:

• Lifestyle creep
• Overspending just because you can
• Drifting from the good habits that got you here

Don’t worry—you can prevent these from happening. Just stay grounded with a written budget. Stick to simple, proven investments. And don’t get cute or chase trends.

Wealth needs protection too. Make sure your insurance keeps up—home, auto, umbrella, identity theft, health and long-term care (after age 60).

And remember: When people know you’ve got money, you become a target for scams, lawsuits and high-pressure salespeople, so stay wise and intentional. That’s how you protect your progress—and your peace—for the long haul.

What does the Bible say about wealth?

“Here is what I have seen: It is good and fitting for one to eat and drink, and to enjoy the good of all his labor in which he toils under the sun all the days of his life which God gives him; for it is his heritage. As for every man to whom God has given riches and wealth, and given him power to eat of it, to receive his heritage and rejoice in his labor—this is the gift of God.” (Ecclesiastes 5:18–19 NKJV)

That means building wealth isn’t wrong. And enjoying it isn’t either—as long as your heart is in the right place.

The Bible is clear: God is the owner. You’re the manager. When you hold your wealth with open hands, you’re free to enjoy what God has given you and use it to bless others.

Wealth isn’t the problem. The problem is when it becomes your purpose. So stay grateful. Stay generous. And never forget who it all belongs to.

Have a different question?

If you’ve got a unique question about Baby Step 7, try our Ask Ramsey tool, powered by Ramsey AI.