I feel the same way about some of the things you mentioned. Who knows. Thanks for the article!
Nice post Mike! But I can also tend to be a bit of a contrarion, which might also be why I appreciate this post. If a person was highly logical, they would not get into debt in the first place. Logical people get into debt. Great read. Being UK I have to tweak his steps to fit me anyway.
I stopped listening to his show though when some parents wanted their kid to pay into a church.
He told them as the kid is under 18 they can take all their money from her. But she had got a job, was working and earning that money herself.
That money is hers and to tell the parents she has no rights to that money and they can take it all from her was wrong that episode has since been deleted from his youtube channel I could sort of understand a little if it was them asking for housekeeping money. They wanted the kid to give her money to a church against her will.
She is working and earning that money and that money is hers. The parents have no right to take that all from her. That would actually be stealing, which I am sure is against the law in the US just as it is in the UK. If your description is accurate it certainly sounds off to me. Not all debt is bad. Yeah, I agree with you, and I have had very similar thoughts. There are ways to get advanced degrees with no debt. Our son graduated last year with a PhD in food science with no debt. He was able to get a fellowship from the USDA that paid his tuition and provided a living stipend. The program works to educate our next generation of research scientists and college professors.
Our son got a good job with a major company and he works on infant formula for babies who have special dietary needs. Thanks for posting this Chris, I had never heard of that program and it sounds like a great opportunity! Personal finance is overwhelming for a lot of people, so often people starting out trying to get their finances on track need something very prescriptive. It seems like several people in the personal finance community have started with Dave and then outgrew his program when it no longer fit their needs. Thanks Pete.
I thought it would be an incredibly unpopular opinion in that regard but many have come out of the woodwork to voice their agreement. Love this post Mike! Dave Ramsey is a big reason we got into budgeting and turning our finances around. We were paying off debt and had good financial principles in place so we moved on to read from people that made more sense for our situation.
These are all great points, but the jerk factor is really why I have a hard time recommending Dave Ramsey to people, even though I think his basic advice does have merit for those struggling to claw themselves out of debt. And yes, credit cards are great, if you know how to use them correctly same goes for leveraging money to buy a home, finance investments. Political conversations are of course, important, but I fail to see how this ongoing theme adds anything to a show where listeners are calling in for help with major financial issues.
The average middle-class family only has a few hundred dollars in free cash. Add on a required monthly premium, and they are trapped right where they are. There is no reason to teach people to pay off debt if they have no free cash flow to use against that debt. He rants, and his rants are full of bias and causes people like me to just tune it out.
I think if he made his arguments as well as you just did, the show would have much more credibility. I still believe you can pay cash for college. Community college is so under utilised in our society and it cuts expenses in half. So you can save and work your way through school if you use the tools available. Good point on credit cards. I love travel points! Thank you for reading Josh!
He totally comes off as abrasive a lot of the time. I know a few people with similar personalities to his and they all are very intense, speak without thought of tone or approach and come off as rude or uncaring despite their deep care to help others. I also like listening to him because I feel like I have the exact opposite personality and can lean towards enabling.
His show has helped change some of my thinking of how to help someone in a dire financial situation and also my attitude towards building wealth. The simplicity of the baby steps help paralysis of analysis.
People will get all hung up on which interest is smallest and then distracted trying to move debts around to better interest rates all while not really doing anything. Following the baby steps takes out the brain work and options and just gets you moving which in the end will get you out of debt faster regardless of the interest you pay. I get all your points and I appreciate the article. I love this post. When I was a teenager, all his teachings seemed perfect. However, over time, I realized many of the same things you mentioned and have since followed different financial routes.
One thing came up that I had never thought of before. Ramsey often mentions that if you want to live like him be wealthy you need to follow his Baby Steps. To become wealthy like him, you need to find an untapped portion of the market where you can use your skills to help millions of people. That really struck me. He found a way to help others out and make money while doing it. THAT is the way to truly live how he lives. That POV gave me an appreciation for him as a business owner.
He has a good model that we should all consider if we want to own businesses.
His business helps tons of his target customers get their money under control, but it would be disingenuous for him to suggest that following his baby steps are going to get you to where he is financially. You are spot on. You did it respectfully and accurately. The way he treats his caller and his employees Is despicable.
In fact, a lot of this echoes content I have written myself. In particular, the fact that credit cards can be a powerful tool in a good way of course. And the fact that one size definitely does not fit all. Thanks for posting your two cents on Dave Ramsey.
It was interesting to read. When it comes to finances I think everyone needs to do as much of their own research as they can and move forward in the way that suits them best. Interesting reading! My husband and I got into the growing culture of grandparents raising grandkids.
The plans I had for our future no longer can be accomplished. I lost my very comfortable income 3 years ago when the oil prices dropped. Due to age, I am not overly marketable. Thank you for reading Gale. Your situation is pretty unique — you should definitely consult with a trusted financial professional. This is an opinion piece. I get some of your points. Like you, I do use credit cards, but pay them off monthly.
Thanks for reading Jim. I agree about the debt free call-ins. Hands-down the best part of the show in my opinion. Makes complete sense to me. It seems that Dave puts out a guideline you can follow completely or customize it to you. Thanks for reading. Very good read. Agree completely!! However, I have now adjusted it accordingly to fit our needs. I believe that credit, like money is a great servant but a horrible master. So like you said credit cards are like a tool when used the correct way. I thought it was just me. Thanks for posting. When it comes to an emergency fund, my thoughts are to fund a Roth IRA first.
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