Frugal Friends Podcast Will Dave Ramsey's Baby Steps Work in 2026? (our actual experiences)
Dec 26, 2025
Jen and Jill evaluate the relevance of Dave Ramsey's Baby Steps in 2026. They discuss updating the starter emergency fund and propose a hybrid approach to debt payoff. Their 90-day debt fast track aims to inspire habit changes. The duo critiques the financial advice ecosystem and highlights low-cost investing. They emphasize adapting the Baby Steps to individual values rather than rigidly following the framework. Listener hacks spark engaging discussions about money strategies, blending personal finance with practicality.
AI Snips
Chapters
Transcript
Episode notes
Dave Ramsey Caller Highlights Tone-Deadness
- Jen and Jill replay a Dave Ramsey caller where Ramsey blames high rent and daycare on overspending.
- The hosts note that $1,500 daycare and high rent can be reasonable, exposing Ramsey's out-of-touch tone.
Baby Steps Are Dated But Influential
- The Baby Steps were designed in the late 1990s/early 2000s and haven't been updated since The Total Money Makeover (2003).
- Economic, technological, and healthcare changes since then make some defaults outdated today.
Increase The Starter Emergency Fund
- Replace the $1,000 starter emergency fund with a larger buffer (they suggest at least $2,000 or up to your health deductible).
- A bigger starter fund prevents repeated derailments while aggressively paying off debt.