Dave Ramsey. Am I missing something?

posted 1 week ago in The Lounge
Post # 16
2618 posts
Sugar bee
  • Wedding: December 2017 - Courthouse

I do understand some of his thoughts. I agree that a lot of people can get out of debt by renting a more affordable apartment, trading in a new car for a used car, getting a part time job until the debt is paid off, etc. But I don’t agree with his zero debt lifestyle. He has said in multiple videos I’ve watched that he thinks people should live as poor as possible to pay for a house in cash. He actually suggests people live with family to save up for a house. I do not agree with that and I live in Southern California. Lol I can’t imagine paying for a house in cash. 

I think his methods are great for people that are terrible with money and need a very strict and structured method. However, I think if you have more sense and are decent with money it’s not very practical. 

Post # 17
2056 posts
Buzzing bee

I have never listened to him but I think the book, Total Money Makeover is inspiring and particularly helpful for young people with debt to really start thinking about eliminating debt and getting ahead in life.  I didn’t follow all of the steps but in part with his teaching I have been credit card debt free for about 5 years now.  Drove my last car until it was 18 years old and I do have a car loan now but enough in savings I could pay it off but the interest rate us low.

Post # 18
922 posts
Busy bee

He reminds me of a cult leader. 

Post # 20
8106 posts
Bumble Beekeeper

rez123 :  most of his followers have credit card debt which is why he’s so against them but it’s a shame. I’d rather he teach people how to use them responsibly since they can have great benefits! We charge pretty much everything possible and pay in full every month. We end up with several hundred dollars in cash back a year from stuff we planned on buying anyways and never pay interest. I cash out or rewards regularly and put the money in high interest savings. It may not be a ton but it’s still free money. 

Post # 21
1614 posts
Bumble bee
  • Wedding: August 2018 - Location

Never heard of him until this site. 

Make a monthly budget, annual goals, SPEND LESS, Don’t take on debts, increase your revenue. That’s what my husband and I do and we’ve managed to get into a pretty solid financial situation with a household income of ~170k in a HCOL area. 

Post # 22
238 posts
Helper bee

My opinion?  Dave gives really good but basic, practical, common sense advice.  If you grew up in an environment where you learned the basics of good money management, he will probably be of little use to you.  But….you would be amazed (amazed!) at the number of people who did not, and who don’t have the first clue, either becuase they’ve always just lived paycheck to paycheck because they don’t make a lot of money or because they got sucked up into the temptation of keeping up with the Joneses, or whatever.  He also gives really good advice to those just starting out, how to invest safely in mutual funds and not get caught in the trap of paying a financial advisor who does not have your best interest at heart. 

Do I agree with everything he says?  No, of course not, because I have an adult, thinking brain.  I don’t hang on his every word any more than I do my favorite politician or my church.  For example, he doesn’t believe in credit card use ever … I use mine all the time but pay it off every month.  I do that because I use it (my only, low balance credit card) for all of my online purchases etc., because I personally don’t want to use my debit card or anything tied to my bank accounts anywhere they can get hacked.  But that’s just me.  The end principal is the same — I never pay credit card interest. 

I am a believer in living debt free – I own my modest house outright (I’m older than most of you) and let me tell you that years ago when I was single and the company I worked for went under and I suddenly found myself without a job, I was fine….and unlike my coworkers, was in a position where I could calmly look for another great job and not be forced to jump at the first that came along. That — to me — it more important than living in a big expensive house with all of the latest furnishings or drive the best luxury car I can get financing for.  To each his own, but I would rather aim for peace of mind than cool stuff.  (although now I’m at the point in my life where I can have both – yay!)

Is Dave a bit arrogant?  Yup.  That’s just part of his schtick, I think, to throw a bit of tough love in, and to drive the point home that none of what he says is rocket science.  He calls people out for being stupid (a word I really dislike) when they’ve done something truly boneheaded, but he will always give them a simple path out of it, too.  Meh — he’s not for everyone, for sure, but he has to make a living too, so that’s the angle he uses.  I think if you can parse through all of that schtick and get to the meat of what he’s saying, there’s some good useful stuff in there.  But again, if you’re already a savy investor, he probably won’t have a lot of value to you.  

Post # 23
876 posts
Busy bee

I know I already chimed in on this thread but just this morning I found a website called Four Pillar Freedom and it’s got some good articles on the math behind savings and investment rates. Something to check out!  (lol I swear I don’t work for them or anything, I just really like personal finance).

Post # 24
359 posts
Helper bee

rez123 :  there’s a book and website called “the financial diet”. The book is written by just one lady, but the website is kind of a tapestry of a bunch of different women’s perspectives on a number of different issues. Yesterday on their Instagram they showed a bunch of different articles that had been written about Emergency Funds. 

Post # 25
1721 posts
Bumble bee
  • Wedding: June 2019

Personally I appreciate him – my dad is SUPER into him. I wouldn’t follow Dave over a cliff, but I think we need more people out there who do the general basis of what he does: offers advice, opinions, and strategies essentially for free to people who really need them. From what I hear, he is good with sending personalized advice to people who write to him, and I really like that about him too. 

If you find yourself in a hole and you’re desperate, he’s a great resource. As PPs said, his methods are pretty harsh, but in all fairness, it’s hard to have a good layout of general money-making and money-saving tips that works for EVERYONE. Because everyone’s financial situation is different. 

That’s where it ends in my appreciation for the guy, though, not because I think he’s a dick or arrogant (I guess in his field it’s easy to come across that way, let’s be real) – but more because my personal financial situation is so different from what he is talking about, because my husband and I have no debt at all. I just passively appreciate the dude from afar, and wish there were more people who do what he does. 

Post # 26
738 posts
Busy bee
  • Wedding: June 2019

Grew up with my parents listening to Dave Ramsey in the car. Some of his ideas are great and some I find too extreme. But I think if you need a lot of guidance or don’t know where to start he can be a great resource for you! 

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