He’s made millions separating fools from their dollars preaching common sense that ain’t so common anymore

I came up with the same idea before I ever heard of Dave Ramsey. I can see using credit for business or buying an appreciating asset like land but I’m like juice, I just don’t like owing anybody anything. Nobody owns me. I have found buying equipment that even though they have a 0% financing you can often get it at a discount paying cash.

Dave Ramsey gives good, old school advice. Not new advice. Not rocket science.
Many Americans are stuck in a consumer and credit lifestyle and don't have basic good money management skills or knowledge. They are over leveraged with consumer debt on depreciating assets.
Ramsey's advice is tailored to that broad group of people, generally.
People who are more educated on money and have financial discipline probably don't need his program because they are not setting things up in a way that is as risky.

Consumer debt that gets out of hand can cause financial hardship and can really strain relationships. Money issues and infidelity are the most common causes of marital troubles and stress in general. We live in a consumer world where stuff is deemed important and a status symbol. Too much debt and very little savings can be very problematic especially in an economic downturn, medical crisis where you can't work, job loss or downsizing situation, etc.

Advising people to be good stewards of their resources, live within their means, avoid debt, to save and invest wisely, and to give generously....in order to gain more financial peace in a person's life....well that is good basic advice that most people need. Not all people actually need to hear it from Dave Ramsey though. His style is not for everyone for sure. He's making tons of money through his show, books, training events, etc.

Plus I personally believe there is good debt (leverage) especially in real estate investing where the goal is cash flow and building generational wealth or on an asset that helps you actually make money. It's about balance and having safeguards in place to handle unexpected problems.

Well said straycat. He gives very basic advice that many people don't know. Dave's hating of credit cards is him making a point about borrowing money. The overwhelming majority of folks do not payoff their cards each month. I took his class, it changed my life. Not because we didn't already know the basic principles he preaches but because we were sloppy. My wife and I had a high income but we spent like crazy. After we focused on it, we were debt free except for the house in 3 months. We have money in the bank, pay for EVERYTHING as we go and will retire well before Social Security age.

Dave's arrogance and "my way is the only way" mentality drives me nuts. The reality is, he talks about stuff that the majority of people either don't know or lack the discipline to do. How can talking about getting out of debt, saving for a rainy day, investing for the future and giving to others be a bad thing?

I think that Dave Ramsey's advice is sound and I'll tell you why...

He's catering most of his advice to people who have totally screwed up their finances and need financial rehab. Much like an alcoholic or a drug addict needs to get sober and stay that way. Most people that come to him for advice, don't have a clue and need financial triage. Consequently his plan is austere for that reason.

The ONLY debt that I believe in is carrying debt on an appreciating asset. The only car Mrs. Irish and I have bought new since we got married was he Mazda CX5 and she got less than 1% financing rate on it. And that was only because we felt that she needing something with a warranty on it at the time. She owes $6k on it. It will probably be the last new vehicle we ever buy.

We got married in 2006 and she was upside down in her townhouse, loaded with credit card debt, I had credit card debt, both of us were struggling as single parents with 4 kids between us and we had nothing in savings. We have managed to pull ourselves out of all of that by living within our means and making smart financial decisions. Now the only debt we have (other than her car) is the home mortgage, but we have about $100k equity in it and are going to sell next year and pull all of that equity out and put it into investments. (Probably some investment property.) We will rent an apartment in Vestavia to be closer to work when we are not at the cabin.

We own outright:
10 acres on Lookout Mountain and mountain cabin outright with no mortgage. (Our retirement home.)
Beach property for a future build
2001 Ford Ranger 4x4
2014 Jeep Patriot 4x4
2007 Mazda MX5 PRHT

We both put away 20% of our paychecks into our 401k plans. The next raise I get I will be maxing it out. Every time I have gotten a raise I have basically just given my 401k that raise. Together we have amassed over $400k in our 401k plans since 2006 by doing this.

The thing is, we haven't really sacrificed by doing this, we've just vacationed smart and seldom eat out and blow money on things that don't last. We take lots of vacations, but we stay pretty cheap, we bring food or buy groceries and cook ourselves. If we go out it's usually for lunch or breakfast when restaurant meals are cheaper, we bring our own booze and don't drink in bars generally. I get a lot of free car rentals and stays at Hilton properties due to my points from travel at work.

I do have a credit card that I use for virtually everything, but I pay it off every month.

I have been to Dave's house and it is unreal! It is next to where LeAnn Rimes used to live and his made hers looks like a pool house. My friend built his 5000 sq ft house on the lake too. He has definitely done well teaching his method. I didn't feel like going strictly by his program was realistic with our household because it doesn't factor in a lot of family bills that pop up but it is a good foundation to use. I have also done the Crown Financial program. Though we didn't really do the part about budgets and money, we really learned more about what the Bible says about money and debt and it opened our eyes about several things. I'm not debt free but I'm definitely in a better place because of the programs.

I used to sell equipment and trust me, you are paying for that 0%. If the customer paid cash or set up their own financing, we could knock off 3-4K.

He has a taught a lot of people who knew nothing about basic money management a good way of getting out of debt. We don't follow it strictly, but our parents also taught us how to handle our money.

Very well said straycant everyone should read your post.

You can agree or disagree with Dave but the system WILL work if you do it.

Debt is like any other bad habit. Easy to start and hard to stop. Get out of debt and stay out of debt. Don't outsmart your common sense.

His system is great due to the fact that many Americans are idiots when it comes to money. His system is so simple a caveman could have come up with it but to many it’s rocket science. I’ve got friends galore that are in debt up to their eyeballs because they are dumb. Constantly buying new vehicles and trading in a year or two on another new one. They can barely afford to buy groceries but that new 2500 is in the driveway all shiny. Those are the people that need his system. I used it to a large extent when I had a good bit of outstanding debt so I could be completely out of all of it before building my house. Now I’m debt free other than this house payment I’m getting into but on day one I’ll have 25% equity due to the cash I managed to put together before building. Lots of folks could pull a page or two from his book but keeping up with the neighbors ranks above financial soundness.

The wife and I followed his program.
Before we had 45k in student loans, 40k in car loans, 30k boat loan and some about 2k in credit card debt.

Ended up paying it all off in a year and a half, cash flowed her masters degree, and afterwards we used that money we had allocated for monthly payments to buy a 20 acre farm for the wife to get horses and such.



It's not that we made bad money before we started following his plan, it's just that we adjusted our lifestyle accordingly to every pay raise we ever got. It was a sustainable life style but when I look back at how we used to live, all it would take is one economic or political burp and it all would of came crashing down. We're only 28, and I can say by following his plan, we're further ahead than anyone else financially than anyone else in either of our families.




For those talking about credit cards and 0% financing, it's more about standing your ground that you're done with debt as a whole.

We recognize it's possible to come out ahead with credit cards. The issue is that if you miss a payment or have a negative financial event, it's all going to come crashing down. Have you noticed cabelas, academy, and every other store asking you to apply for a credit card? It's not out of the kindness of their heart, they are literally making money hand-over-fist from people who thought they could game the system in their favor. It's not impossible to do, but it's playing with fire.

As for the 0% financing, no one is going to give money away for free. 99% of the time, your 25k tractor that had 0% financing also had another option of 1k+ off the price. So you essentially paid 24k for a tractor and 1k to finance it at 0%. It's just a marketing technique to give you the warm and fuzzy about the purchase since you walk away thinking you're making money at the rate of inflation.

Absolute fact, nothing is free. My mower I mentioned buying on credit recently was 0% for 48 months. We’re talking around a $5000 mower. I was buying regardless but I figured what the heck I’ll finance because of the no interest. I have a coworker who recently bought from the same place in cash, same mower. He got out of there $500 cheaper than I did and I still ended up paying my mine off anyway. I would have come out way ahead forking over the cash on day one.

His approach is basically a common sense type of advice. One of his famous lines is giving common sense advice like your grandparents, or great grandparents would give you , and hes right.
Those of us older than 45 probably never saw any of our elders owning vehicles worth more than their homes. Pretty common nowdays for 2 vehicles to be worth more than the house the average couple are living in and paying mortgage on. Then when they need tires for them they have to put them on a credit card.
His snowball plan paying off smallest to largest lets the average person get and see results. No special formula or magic trick. Just common sense.
70% of americans live paycheck to paycheck and the average savings account has $7k in it.. Sad for a country this wealthy.

I wont tell anyone how to live their lives or how to spend their money and I don't agree 100% with all of Daves advice but. If you follow basically his plan it will work for the average Joe.

2 prime examples of how irresponsible people can be with money. I know a younger guy, makes 35 or less per year. Live s with mom and dad and drives a 60k diesel he bought new. I have another friend who has bought and traded 4 brand new vehicles in the last 6-7 years and he can’t figure out why he’s so far upside down. Makes damn good money and barely gets by because of all his toys.

But really the real winner would the person that takes 0% for 48 months, pays it off in 48 months, maxes out their 401K, max out their IRA, maxes out their HSA and builds up a healthy brokerage account.
You can get loans for all sorts of things, can't get a loan for retirement.

Sounds good, however, all that maxing out is a pipe dream for about 99% of young folks just starting out. The main thing is don't dig yourself in a debt hole starting out.

Dave Ramsey has a success story. He's been there, done that. I doubt most offering advice has a success story in finances like he has.
Like it or not, no debt works. That's the route I chose before I had ever heard of Ramsey and I'm satisfied where I'm at a age 52 financially. How can being satisfied be wrong??

You can spin it any way you want--debt is an evil bitch that most people cant get away from. I have chosen to stay away--I have a pension, 401K, saving accounts as well as an IRA. I could no doubt invest more aggressively but I would rather stay away from financing all together other than a mortgage. Most people my age and younger don't have a clue about investing because its not "fun" and doesn't put toys in the driveway. there are plenty of approaches that work well but you have to be able to see the forest through the trees.

This is true but id bet most not just the young ones starting out don't contribute to theirs even though it would cost them almost nothing to do.
The minimum is usually 3% contribution. A lot of people will say they cant do without that 3% take home.
We sat down years ago and figured it up. Take home pay before vs take home pay after 3% contribution.
Even though you are giving 3% to your 401k, Your bottom line take home usually did not change, or if it did it was less than a few dollars a weekThis was due to the 3% being taken out was pre tax, and less for you to be taxed on the take home remained almost the same.
My employer does a match up to about $1500 a yr. I work with guys who have been there 20 years or more and aren't in the 401 program. They wont put in $1500 a year out of their checks to get the matching $1500. They don't understand that in 20 years if they had saved that $1500 each yr they would have received $30k for free from the employer. They left $30k laying on the table.

Good news folks, the 401K max in 2020 is going to $19,500 but Dave Ramsey.
Oppprtunity to get an extra $500 in tax advantaged accounts, I'll take it.