About Dave Ramsey
Dave Ramsey is a well known debt solution expert and financial consultant that's authored fourteen books, hosts a national radio show, and runs a financial consulting firm.
The majority of his programs focus on overcoming debt through a variety of debt management solutions.
On the subject of debt Dave Ramsey speaks from experience and shares his own rollercoaster history with money. By age 26 David Ramsey had accumulated a real estate portfolio that was worth millions of dollars.
However, much of his success relied on a cycle of borrowing money, consequently new tax legislation limited his ability to proceed with his business practices; this ultimately forced him into bankruptcy.
After suffering a huge loss, Ramsey began his slow climb back onto his feet. He was providing financial counseling and eventually developed the basis for his debt eradication programs. This led him to create The Lampo Group, his own financial consulting firm.
David Ramsey can be heard offering financial advice through his radio show and at several of his websites. His show has been singled out for several awards due to his unique approach in taking calls. He's known for talking to people in a way that reaches them more than just simple financial advice could.
On the subject of debt and actual financial advise David Ramsey's major point is to avoid debt at all costs. His motto is "you shouldn't buy it if you can't afford it." He has taken his hatred of debt and credit card companies to an extreme level as he won't accept credit card payments on his websites.
Dave Ramsey is most known for promoting two financial strategies, the "Baby Steps" and his "Debt Snowball". The Baby Steps force you to confront your financial situation and begin the process of eliminating debt, increasing savings, and positioning yourself to make smart investments.
The Debt Snowball is David Ramsey's method of paying off debt with the smallest balance first. This strategy has been criticized because you would technically save more money and pay debts of faster if you started paying the highest interest rate debt first. However, he acknowledges this fact and counters it with a logical explanation.
He says that the majority of people feed of the positive reinforcement they get by completely eliminating one debt payment. Thus it may end up costing more in the long run, but if the psychological factor keeps you from straying of your debt elimination plan then it's worth the extra cost.
13 ‘Dave Ramsey’ Reviews
I work in the financial service industry and I was fine with money (very little debt, large emergency savings) until I was hit with a tsunami of events- major car accident that left me hospitalize, extreme drops in income, major home repair issues, sudden loss both family cars, major family health issues- all events within 4 months of each other.
David Ramsey gave me a sense of direction with his baby steps. I had to swallow my pride as a financial adviser and accept that I need to learn to do things differently. I am very grateful for his insight and the Financial Peace University for restoring a sense of peace into my and my family's life.
Working the baby steps has literally saved my marriage, brought my husband and I to Christ, and has allowed us to actually start enjoying life. I never knew how stressed out I was about money until I was debt free. Reading The Total Money Makeover"" and attending ""Financial Peace University"" were life changing for me. It can be very difficult to stick with the process while you are getting out of debt, but it is beyond worth it once you are on the other side."
You are a great blessing to all of us David!
May God bless you more and more!
I am not sure that it is fair to the kids to go on an extreme cheapskate budget that leaves out vacations and dining out.
You should have something in your budget for enjoying yourself. That is unless you cannot pay your bills. Broke people should not go on vacation in the first place.
His advice does work. No doubt. But, I must agree with what Henry posted. It's hard as hell to find a job at all these days, let alone three! While I do still have my job, by the grace of God, I have been unable to take on a part time job, due to the unavailability of them. So, I just have to make do on one salary. The plan will just take a lot longer than it would have with a second job. One weakness Dave has is sitting in the ivory tower too long and not coming down with the common folks and seeing how tough things are these days. Nothing ever changes for him because he is rich and will stay rich, regardless of the economy. Not putting him down, he earned his wealth, but he also did it when times were easier. He fails to realize that. His plan will still work, it just takes longer now due to the economy. But, you can't tell him that.