How I would adapt the Dave Ramsey method for 2025 and beyond.

This is not financial advice. Please consult someone with credentials before doing anything with your finances.

When my now-husband and I got engaged, it was important to me, as someone who carried only a little debt at that point in my life, that we be on the same page about money. So we did what everyone says to do, and we took Financial Peace University.

We did, for the most part, work the steps. But I also remember sitting in one of the classes, where they made you literally fish through your wallet and pull out your credit cards and cut them up in front of everyone.

The thing is, I never carried credit card debt. And I used my card for the cash back. I paid it off every month. But the system doesn't care.

I may have rebelled though. I cut up that card, but I didn't cancel it, and eventually, I requested a new one. Because one of the things about the Dave Ramsey Method is that it relies on what all of conservative Christianity relies on: unquestioning obedience. So sure, I put on my brave face and cut up the card that was the literal start to my great credit history in front of ten or so other couples. But I know what is best for me.

And I believe that you do too.

Which is why I'll share with you what I would do if I were in dire financial straits today, some of the ways I adapted the method along the way, and how to help things make sense along the way. But also...I trust that you'll read this, take what works for you, and leave the rest behind. Because I believe in your ability to do your best in whatever situation you find yourself in.

Listen, I know I already touched on this, but the Dave Ramsey method reeks of old-school authoritative Christianity and patriarchy with a side of the worst kind of entitled Boomer mentality. (I don't hate Boomers as a whole, but it's like calling someone a Karen, in this instance.)

Not to mention, if you dare watch any of the latest episodes of The Dave Ramsey show, you'll see him repeatedly calling people names, berating them for making the best decisions they could in a bad situation, and ultimately talking over them as if he is the ultimate authority of their lives. Gross.

And don't even get me started on him talking about "managing all these properties and millions for God." He always says "oh it doesn't belong to me, it belongs to God." Sure, Jan. Guess we're forgetting all of the times Jesus talked about people who needed to give away their riches and help the poor, but I digress...

If you're unfamiliar, The Dave Ramsey Method is made up of 7 Baby Steps to financial freedom. And while they make work for some, they're pretty dogmatic, had a much better relevance to financial situations in the 90's, and overall, are too strict for many people at the margins. I'll do a brief rundown, but there are plenty of people preaching this gospel, so I'm not going to go too far into it.

Step 1: Save $1,000 for your starter emergency fund.

Step 2: Pay off all debt (except the house) using the debt snowball.

Step 3: Save 3–6 months of expenses in a fully funded emergency fund.

Step 4: Invest 15% of your household income in retirement.

Step 5: Save for your children’s college fund.

Step 6: Pay off your home early.

Step 7: Build wealth and give.

Yes, it sounds great in theory, but lort, when you get into it, things get iffy pretty fast.

As I mentioned, we worked the Dave Ramsey Method, for the most part. And I did make some modifications that made sense for us along the way. So, here is how I would go about it now.

Dave says, ABSOLUTELY NOT. Dave has said things along the way (I don't know verbatim, if you want that, go find it) along the lines of "you're just transferring the problem".

Dave, I'm trying to stop the bleeding.

At one point, just a few years ago, I had a job offer fall through and was left with about 1/3 of the income I had been making previously and about 1/6 of the income that the job that fell through had promised. Then our HVAC went out. And I had a medically needy dog. And, while I started out with savings, it went fast. And then I did have to, for one of the very few times in my life, rely on credit cards.

And let me tell you...those interest rates are no joke.

Eventually, I was in a place where I was ready and able to start paying off the debt, and I decided to look at a balance transfer. And when I tell you the relief of not having $50-100 of interest added to my bill every month so I could actually make some progress....PHEW!

I realize that, depending on your circumstances, this may or may not be an option. Again, take what works, leave the rest, but for real, if you can get a balance transfer, the fee is generally going to be so small compared to the interest you would pay over the course of trying to pay it off.

(Also, do your best not to add to it. Sometimes, it's unavoidable, but see which other tips may help so you can create some breathing room for yourself and not have to add to the balance!)

Another thing that's SO overlooked...food.

Dave harps all over restaurant spending, but what about actual groceries? We've heard the "price of eggs" debate ad nauseum. It's time to remove the stigma of using resources available to you.

And if you're a person who has grown up poor, you're probably thinking, "I can't do that, someone else might need it more." Babe, YOU'RE the someone else who needs it more. If you can't pay your bills and you're struggling to keep the lights on, hit up that food pantry.

Okay, I know I said I wouldn't harp on spending so much, because chances are, if you're reading this, you're a person who only does necessary spending, but just in case...

Temu, Shein, Amazon, and I don't know what else is popular right now, but you get the idea. Delete the apps. The only ones I leave on my phone are for the grocery store, and that's so I can use coupons (more on that another time because I have much to say).

Bonus Points: Remove the cards from your digital wallet/Apple Pay. Just please don't forget your wallet, because that's embarrassing.

I know it's annoying. I know we hate talking about it. But shop insurance rates at least once per year. Find a broker who works with multiple companies so they can find the best rates for you.

True story, my broker called once because our 6-month renewal for our car insurance was getting ready to renew. They're like "it's going up a stupid amount, are you cool if we shop other plans for you?" Um...absolutely, thankyouverymuch.

They shopped around and ended up just having to rewrite the plan with the SAME INSURER with the EXACT same coverage and somehow that actually SAVED us money? It's a stupid and broken system, so use the tools available to your advantage.

One of the biggest things that Dave talks about is the debt snowball. He says that, regardless of interest, you pay all debts, smallest balance to largest balance and "snowball" the payments into one another so you're making progressively larger additional payments on your debts and minimum payments on things until it's their turn to get the snowball payment.

And yes, that's nice, if all of your debts have similar interest rates, but let's consider:

A $2,500 medical bill that you'll pay to the doctor's office (these generally don't have interest and you set up payments with the office)

A $5,000 credit card bill at 24% interest

And maybe some other miscellaneous bills in there too. Dave says, no matter what, any extra that you have goes to the medical bill and you pay minimum on that credit card.

But truly...make it make sense. Sure, if both of those things had similar interest rates, go for the smaller one and knock it out to feel good. But really think about your debts and what it makes sense to focus on.

Additionally, if something has already gone to collections, there's a lot of information out there on how to reduce or eliminate that bill. I haven't had to deal with that in my adult life, but do some searching before trying to make that part of your plan to see what kind of relief you can find.

Dave is PASSIONATE about side hustles and taking anything you can get, no matter what. Some things to consider when taking on a side hustle:

Is the cost of childcare/transportation going to be worth having this side hustle?

Is working this many extra hours going to exacerbate any medical conditions you have?

Can you find a side hustle with additional perks? (For instance, if you need food, can you get a gig with a caterer on the weekends that lets you have leftovers? If you need childcare, can you find a daycare opening that works? Think about what it is that you need and see if you can get some of that from a side hustle that also pays you.)

One of Dave's big things is saving $1,000 as fast as possible for an emergency fund, and then don't save anything else until all your debt is paid off. And I would just like to point out that in THIS ECONOMY that may not be it.

While I realize that, for a lot of people, yes, that $1,000 will make a big difference, and it has for me at times in my life. But if you have the ability to save more while not getting eaten alive by interest on your debt, then stack that cash. Now, let's talk about a few of the ways to do that.

One of the things I did waaaaay back when, before I actually did the full Dave Ramsey program was to pay cash. (I know, don't roll your eyes.) But here's the thing: I was able to get some sneaky savings in. Because I never spent my change. I let it accrue in my purse until I dumped into a bucket in the closet. If this is the only way you can save right now, then do it. Something is better than nothing. I funded many vacations this way. (Illicitly, by Dave's standards, because I did them before I had worked enough of the baby steps).

Do not discount the tiny bits of savings you can get. If you get to a point where you can afford it, start putting all of your ones in there too.

Dave says not to even bother saving for retirement if you have debt. But he also talks about the magic of compound interest. Which is it, Dave?

For a person with a massive student loan debt that might still take 5-10 years to pay off, losing out on that over time could be detrimental.

And if we're being honest, I would be surprised to be around to retire; however, I have still always made a small contribution to my retirement on a monthly basis. (Note: Yes, I did this even when I was relying on credit cards, because it was a very short stint. Again, look at your situation and decide what's right for you.)

When it comes to saving, it can feel daunting. For sure. I've always been self-employed, and the one financial method that truly did make a difference for me was the Profit First method.

While it's designed for people who are self-employed to make sure they have enough to cover expenses, pay themselves, pay taxes, and reinvest in their businesses, I've found it to be greatly helpful in my personal finances too.

The idea is that you always pull something, even if it's 1-2% of your income to put aside. (In business, this is for your "profit" account to either give yourself a bonus or reinvest.) But if you're really struggling, finding a way to put away $5 when you get paid can give you a little boost over time. And as things get more comfortable, you can increase this to work on the emergency fund even more.

This comes with a word of caution: Don't buy things just for the cash back. Sometimes, it can save you money, sometimes, store brand is still the way to go. BUT...if you HAVE to spend the money, using Fetch and Ibotta for grocery and household purchases, and Upside for gas can get you a little bit of cash back. (And the nice thing about fetch is that it works with ANY receipt! You don't have to have specific stores or offers like Ibotta.)

Okay, so that's it. I know these aren't all as fun or interesting as some of the more aesthetic offerings out there, but they're things that have helped me repeatedly over time, and maybe they'll help you too. Remember, it's not financial advice. You know your situation best. Take what works, and leave everything else.