Finance guru explains exact moment you should stop putting cash in your savings

A financial guru and American radio personality offers his “seven baby steps” guide to help millions of Americans manage their own money, pay off their debt, and build wealth.  
Dave Ramsey, the host of the Ramsey Show, has sworn by his baby steps as a way to learn the basic principles of money management and wealth accumulation, which he channels into financial counseling.  
The 63-year-old guru explains that the first baby step for families is to save $1,000 “as fast as you can,” which acts as an emergency fund that can keep you afloat in a time of need. 
The second baby step is to list all of your existing debts and pay them off, including cars, credit cards, and student loans. The house, viewed as a personal asset even though mortgage is more of a debt itself, is an exception. 
Ramsey advises using the “debt snowball” method, which involves listing debts from the smallest to largest, making minmum payments on all debts except the smallest, which must be paid off as quickly as possible. 
Once the smallest debt has been paid in full, the cycle continues as you repeat until the rest of the debts are paid. 
The third baby step is to build a fully funded emergency fund that covers three to six months’ worth of living expenses.
The fund is also used to protect yourself from unexpected expenses that could lead to a sudden drop in your income, such as car repairs, hospital visits, and job loss.
The fourth baby step is to invest 15 percent of your household income for retirement, and the fifth step is to save enough for your children’s college expenses. 

The sixth baby step is to pay off your home mortgage as early as you can, and the seventh and final step is to build wealth.
The 63-year-old, who usually advises his followers to stick to his program, said there are some cases in which American households can pause the baby steps, but only if they “declare an emergency” first.
“The principle that we use is if your car broke down and you don’t have the money to fix it because you have paid [your debt] down to $1,000,” Ramsey said in the latest episode of his radio show on Tuesday. 
“You need $2,000 or $4,000 to fix a car or replace a car, [so] you would have to push pause because you’re in the middle of an emergency.”
But the host outlined several other reasons that are not serious enough to pause the baby steps. 

Ramsey told one listener who was caring for a sick child: “You’re in the middle of an emergency and after the scare with a one and a half-year-old your brain is in an emergency. I can understand that if it had been my little kid.
“But you and I both know that statistically you’ve lived there 31 years and haven’t been hit by a tornado they’re all around you.”
Co-host Ken Coleman then interjected and said: “If I were you, I would not pause the baby steps, I would find a way to come up with the four grand as quick as I possibly could working extra hours. Selling anything and everything. Four grand, you can find a way.”