Unpopular Opinion: I don't like Dave Ramsey

[eddielasvegas]

Gotta go give him credit though. All he has done is branded Common Sense. And he is making a killing with it.

I agree and while I'm not totally against the guy, the few videos I've watched he seems to give advice from his current, and very wealthy, situation. I don't often hear advice from his 20's and 30's when he had many failures and was broke/bankrupt. My opinion is from his few YT videos and shorts I have watched.

He always talks about his companies and how successful they are but I'd like to know how much of that is from his business acumen vs. his "selling" common sense for financial matters.


Eddie

 

[roymunson]

DR is for financial advice like Weight Watchers is for fat people. Effective, and very un-nuanced, but it has to be for the audience he's serving. These are people who think carrying a credit card balance at 20+ percent is ok. Its simple and basic and he's marketed it well.

The best thing my wife and I did was go thru his class when we first got married. It put us on the same page. We make changes for our family, but we're on the same team.

I have huge business debt now, and wouldn't have built any kind of equity if I'd waited until I had cash. I've far out earned my interest rate. BUT, I have a good sense of how money works. Not so with everyone.

Sure he misses on the nuanced side of things. But, he's helped countless people get their life in order and take the stress of money away from their daily life. That should be celebrated.

If you know how to handle money, good for you. You're probably in the minority. But this program works well for those who weren't taught as kids and haven't grasped concepts as adults.

 

[displacedtexan]

Gotta go give him credit though. All he has done is branded Common Sense. And he is making a killing with it.

He's branded a very rigid view of common sense.

So rigid that the lack of flexibility means it sometimes makes no sense.

 

[CorbLand]

Barely, and mostly due to significant salary increases for me and my wife. As is we now have a mortgage escrow that’s like 10% of gross and have been able to dump a ton into tax advantaged accounts, and my return over that period has been roughly 12% vs 3% interest

his philosophy around low interest mortgage debt seems to be to instill fear of having your loan called because he got hung out and bankrupted when over leveraged but comparing his situation to a modern fixed rate home loan is…. Disingenuous.. at best.

That’s not me suggesting people should be buying million dollar homes on entry level salaries, just that there is an area of nuance larger than the Milky Way between those 2 situations

I don’t disagree with your last paragraph. People are stupid and do stupid things.

I really truly don’t understand how the guy can sit there and tell people to just keep saving to meet that requirement when we all sat back and watch housing prices double in the span of 3 years.

Back in 2019 my wife and I talked about buying but choose not to because we thought you had to do what Ramsey said to be “smart” with money. We could have put about 10% down on a 30 year and made it work. 3 years later when we bought, we put 10% down on a 30 year and are making it work. Difference is, if we would have done it in 2019, my mortgage would be half.

 

[Marbles]

I don’t disagree with your last paragraph. People are stupid and do stupid things.

I really truly don’t understand how the guy can sit there and tell people to just keep saving to meet that requirement when we all sat back and watch housing prices double in the span of 3 years.

Back in 2019 my wife and I talked about buying but choose not to because we thought you had to do what Ramsey said to be “smart” with money. We could have put about 10% down on a 30 year and made it work. 3 years later when we bought, we put 10% down on a 30 year and are making it work. Difference is, if we would have done it in 2019, my mortgage would be half.

I got lucky and couldn't find a spot to rent when we moved, so I had to buy. Glad I did as the place would have cost 30K more and 1-2% higher interest rate if I had waited a year. Plus, my mortgage and escrow is cheaper than rent by several hundred a month and by using my savings to make improvements rather than a down payment I have probably added 75K in value and am ahead on the value to debt ratio.

I did buy the cheapest spot that met our needs at under half the value I was approved to borrow. The only value in Ramsey's mortgage advice is for people who will over buy.

 

[fwafwow]

Some have said DR helps many people but that he has to (essentially) "dumb it down" to get many of the people to benefit. To me that seems like the equivalent of "those folks are so dumb you have to" essentially overly simplify the statements to get them to help themselves. But he's not just simplifying, as a good bit of what he says is just wrong. And while getting out of debt may help someone (including by eliminating or reducing) stress, it may also induce stress if they are avoiding debt and following his home purchase recommendations.

 

[displacedtexan]

I don’t disagree with your last paragraph. People are stupid and do stupid things.

I really truly don’t understand how the guy can sit there and tell people to just keep saving to meet that requirement when we all sat back and watch housing prices double in the span of 3 years.

Back in 2019 my wife and I talked about buying but choose not to because we thought you had to do what Ramsey said to be “smart” with money. We could have put about 10% down on a 30 year and made it work. 3 years later when we bought, we put 10% down on a 30 year and are making it work. Difference is, if we would have done it in 2019, my mortgage would be half.

And you'd have 30% more equity.

 

[CorbLand]

And you'd have 30% more equity.

For my area, closer to 60%.

Work from home made my area very very desirable.

 

[Schmo]

You can like him or not, but you can’t deny he’s extremely successful. He often says he’s so dumb he’s had to be a millionaire twice, as the first time he went bankrupt. Regarding 20% down for a home, he only tells that to people that are not buying their first home. For first time buyers, he says 5% is enough. You can hate on him all you want, but he owns $550+ million in real estate outright, and doesn’t owe anyone a dime. Just about everyone who hates on him owes someone something. He’s just focused on principles that work every single time. He doesn’t say it’s the only way you can be wealthy, just the safest way. He got to where he is without leveraging debt. Call him dumb if you want.