When Can You Have Fun With Your Money? Dave’s Three Step Plan…

May 2, 2018


Dear Dave,

When is it okay to have a little fun, and buy things you want, when you’re following the Baby Steps plan?



Dear Kaitlin,

The time for a little fun is after you’ve completed the first three Baby Steps.

Baby Step 1 is saving $1,000 for a beginner emergency fund.

Baby Step 2 is paying off all debt, except for your home.

And Baby Step 3 means you go back and add to your emergency fund until you have three to six months of expenses set aside.

Once you’re debt-free except for your home — and you have your emergency fund completed — you’ve laid a solid, financial foundation for your life.

That’s when you can have a little fun and spend some money on a vacation, new furniture, or something like that.

Children think about their immediate wants and do what feels good.

Adults, on the other hand, devise smart, logical plans, and stick to them.

I want you to have a great life, but you have to put in some hard work and say “no” to yourself sometimes in order to attain that great life!


* Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money MakeoverThe Dave Ramsey Show is heard by more than 13 million listeners each week on 585 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.