Everyone who knows him has an opinion about Dave Ramsey. People seem to either love him or hate him. There’s really no middle ground. While Ramsey has helped many people, looking at his philosophy and approach to money, it’s better to ignore hm. Here are reasons people gave for doing just that in an online forum.
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His Advice is Too Simple
One person online puts it quite bluntly, “His advice isn’t anything out of the norm. It’s quite simple: Spend less money. Pay off high interest debt. Invest in his products so he can live his lavish life.”
They go on to say, “I wouldn’t follow ‘anyone’ regarding advice on how to get out of debt. There’s no magic formula to get out of debt. Stop spending money you don’t have, pay off high interest debt, have a six month emergency fund, don’t carry balances on credit cards, invest in low cost index funds (VTI, etc) and live your life.”
Sounds as easy to follow without all the shame and rules that Dave Ramsey offers.
He’s Not the Kindest Person
Anyone who has listed to his show knows that Ramsey is quick to be gruff. Tough love is necessary in some circumstances. He takes it a bit over the top.
One person agrees, saying, “He’s also just a horrible person in real life too. Not someone to support or give money/clicks to.” Another person chimes in, saying, “People overlook this bit so often.”
You don’t have to be kind to warrant being listened to, but being a jerk isn’t the route to take.
His Math Doesn’t Make Sense
Math is obviously essential when doing personal finances. However, Ramsey sort of leaves or forgets math.
“Well yeah obviously anything is better than nothing, but I agree from a mathematical standpoint, I wouldn’t say he’s the best,” says one commenting detractor.
Another person adds, “Definitely not. Nor would I. He’s a step above some TikTok hacks and that’s about it. The man sells budgeting envelopes.”
Ramsey often forgoes opportunity costs solely to avoid debt. I hate debt too, but I’m not going to support rushing quickly to pay off your debt to forego other opportunities.
He’s Merely a Gateway
You can’t debate the help Dave Ramsey has been to countless people in attacking debt. However, his advice often falls flat after that.
One commenter agrees, saying, “I think he’s a great gateway into personal finance. But if you stop your learning at Dave Ramsey you are missing a lot.”
While he does offer some good advice, much of it is elementary. If you want something more advanced than that, you should look elsewhere.
His View On Credit Cards Is Outdated
I hate credit card debt. I paid off over $25,000 of it after graduating college. However, Dave Ramsey goes too far in his hatred of credit cards.
When used wisely, they can be a valuable tool to manage your finances. In fact, rewards credit cards offer even further benefits. Assuming you pay off your balance in full each month, credit cards are perfectly fine to use.
He’s In It For Himself
Earning something for your work is perfectly fine. That’s not the issue. Ramsey seems to overly hawk products that pay him a commission.
One commenter agrees, saying, “Dave Ramsey is about making money for Dave Ramsey. His advice isn’t anything out of the norm. It’s quite simple: Spend less money. Pay off high interest debt. Invest in his products so he can live his lavish life.”
The recent lawsuit against him would like to agree as well.
Shaming People Isn’t the Right Approach
Tough love can be a helpful approach to changing attitudes and actions. Take it too far, and you end up shaming the individual.
One person agrees, saying, “His shaming and toxic Christianity did not work for me.”
While he is helpful, the shame angle sours a lot of people.
He Gets Debt Wrong
High-interest consumer debt and lower-interest debt are not alike. The former is suffocating and restricts you from your goals. The latter provides a home and may even help you grow your wealth.
One commenter agrees, adding, “His take on debt is ignorant. There is good debt and bad debt, he doesn’t know the difference. But if you are desperate, ignorant, and can’t figure out how to get out of debt, he might be of assistance to you.”
I get that debt is his thing, but it’s best to keep in mind that not all forms are equal.
Mixing Religion With Money Is Offputting
Religion is a divisive topic in our culture. Money isn’t that far off from it. Combining the two can truly offend some people.
One person notes, “I used to listen to him regularly. While I think he has some good points sometimes, his views on politics and religion get pulled in to his advice too often.”
People go to Dave Ramsey for financial advice, so keep religion and politics out of it.
Snake Oil Comes to Mind
People can spot a slimy salesman a mile away, most times. It’s unfortunate that much of Ramsey’s message gets lost in his hawking of various products.
“He preaches financial austerity with catchphrases like ‘act your wage’ and then advertises for jewelers and other luxury items. He’s a con man selling an expensive program to financially desperate people they don’t need to buy,” says one person in complete agreement.
He obviously needs to make money, but he could be a little more discerning in what he pitches to listeners.
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This thread inspired this post.
I’m John Schmoll, a former stockbroker, MBA-grad, published finance writer, and founder of Frugal Rules.
As a veteran of the financial services industry, I’ve worked as a mutual fund administrator, banker, and stockbroker and was Series 7 and 63-licensed, but I left all that behind in 2012 to help people learn how to manage their money.
My goal is to help you gain the knowledge you need to become financially independent with personally-tested financial tools and money-saving solutions.
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