In a corner of the internet where paying off a mortgage early earns you digital applause and a fully funded emergency fund gets you sainthood, one comment landed like a splash of cold water.
Buried in a Reddit thread titled “Went thru all Dave Ramsey steps and still don’t feel happy with life and funds. Am I doing it wrong?”—a response from a 42-year-old claiming a net worth of $20 million cut straight through the praise for financial peace.
“I’m not anti-Ramsey,” the user began, before torching the rest of the program.
“He is good for the risk-averse salaried employee who wants to have $500K to $1M at 65 years old. Nowadays, $1M isn’t what it used to be,” the commenter wrote.
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Their post wasn’t a hit piece. It was more like a reality check for those wondering why checking all the boxes on Baby Steps doesn’t feel like winning the game. Especially when the end prize is a nest egg that might not stretch as far in 2025 as it would’ve in 1995.
“His strategies are terrible mathematically,” the user added. “They will ruin your chances to ever having $5M, $10M, $20M or $100M.”
That comment struck a nerve because it wasn’t coming from a keyboard cowboy. It was coming from someone who claimed to have already crossed the $20M finish line—and credited that success to something Ramsey explicitly warns against: leverage.
“He frowns upon leverage, but nearly every wealthy person took concentrated risk with leverage,” they said.
Ramsey’s Baby Steps are built on a rock-solid foundation: zero debt, fully funded emergency savings, and a long, slow climb up the investment ladder. The approach is practically bulletproof—for people who want security.
But that’s exactly the issue, according to this $20M commenter. It’s too safe. It’s engineered to avoid disaster, not maximize upside. And if you’re trying to build generational wealth, that can be a problem.
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In fact, they argue that Ramsey’s advice—especially the part about paying off a mortgage instead of investing—may have cost followers millions in lost growth over the last decade.
“Paying off your mortgage at the rates we’ve had the past decade and with the S&P returns would have cut your net worth in half,” they claimed.
That’s not hyperbole. Consider this: Between 2012 and 2022, the average 30-year mortgage rate hovered between 3%–4%, while the S&P 500 delivered an annualized return of over 10%. Mathematically, putting your cash in the market beat debt repayment almost every year.
Still, Ramsey’s advice isn’t meant for Wall Street gunslingers or serial entrepreneurs. It’s for families tired of living paycheck to paycheck. It’s for people who lie awake stressing over credit card debt, not capital gains tax. It’s about stability, not scale.
If you’re a W-2 employee trying to build a $500K retirement account and sleep well doing it, his approach works. If you’re trying to be the next Shark Tank guest, maybe not.
And that’s where the gap lies.
Ramsey’s playbook isn’t wrong—it’s just not designed to build $20 million fortunes.
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So… Can You Get to $5M or $10M With Baby Steps?
Technically, yes. But it’s going to take time, consistency, and a high income. Most people following the Baby Steps aren’t trying to become ultra-wealthy—they’re trying to become unbroke.
Still, critics like this Redditor argue that Ramsey’s allergy to leverage—refusing to use debt even strategically—means leaving massive potential gains on the table. That’s fine if you value peace of mind more than maximizing returns. But if you want explosive growth, you’ll likely need to color outside the lines.
The $20 million commenter may be an outlier, but the core of his message lands: You can’t invest like you’re scared and expect to build wealth like you’re bold. Dave Ramsey will get you to “comfortable.” But if you’re shooting for “freakishly rich,” you may have to take calculated risks—and stomach the volatility that comes with it.
Just don’t forget: there’s a reason most lottery winners go broke, and most slow-and-steady savers don’t.
Peace of mind and risk tolerance? Turns out they’re part of the portfolio, too.
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This article 42-Year-Old With $20M Says Dave Ramsey Works For ‘Risk-Averse’ Workers Aiming For $1M at 65 But Calls His Strategies ‘Terrible Mathematically’ originally appeared on Benzinga.com
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