We got a 0% credit card (intro offer) once to buy a van. We paid the minimum until just before interest would start then paid it off in full with earnings we had from those minimum payment months.
Different strokes for different folks.
@ko82870 I said “underinformed” listeners. That segment. Not all listeners.
Iactually think most DR followers are not looking to invest great sums. Their primary goal is the debt resolution. That’s what’s smack in front of their faces.
His advice to folks who are drowning in debt is to have food, heat, a roof, and your basic needs met first. He is crazy! about finding ways to graduate debt free from college. He went bankrupt when he was 28 and made huge mistakes so there is that.
I do not find his message important to me in my life at this time, and I do get a huge amount of satisfaction about the parts of his advice that I figured out myself 30 years ago on my own. He brings up Christianity from time to time. But it is secondary to being in a good place to feed your family and have emergency funds. It is just a fun radio show while in traffic.
Honestly, I listen to him all the time and could hardly tell you what his investment advice is beyond “15% to retirement in growth stock mutual funds”, and that he recommends ESAs before 529s. Investing is really not the focus of his teaching.
I frequent a couple DR boards and the vast majority of his followers once they reach the point where they’re debt free with an emergency fund and actually HAVE money to invest kind of go their own way when it comes to investing. I personally think 15% is not enough and I have a different AA than he would probably recommend. Same deal with the 529s. I had my son’s in age-based which he hates. In hindsight I probably should have listened to him on that one! But, the market could have sucked the past 10 years instead of growing like crazy.
I don’t mind his religiosity, though I always am a little confused when he ends his segment saying something about Christ Jesus. I always thought it was Jesus Christ, but I’m pretty uniformed about religion. He also assumes that everyone is going to tithe 10% of their income, even if they are completely in debt. Okay…but not all of his listeners are religious, so?
Having listened for so many years, however, I get it. Attack your debt as your all consuming purpose, and you can get that burden out of your life. Yes, even student debt is bad debt, get rid of it. I agree. I have known people who are totally weighed down by the constant burden of debt, and the fanatical desire to shed it, and a formula to do so, is what Dave provides to them. It’s hard to get to the point where you are obsessed with paying off debt with such intensity without a cheerleader and guidance, and I think it strikes a chord for people drowning in debt Nothing wrong with that.
I got turned off by the religiosity and self promoting.
Dave Ramsey says it was the mistakes he made that pushed him into bankruptcy that led him to create the financial plan he touts (he did not go bankrupt following his plan). He often says that it is based on advice your grandmother would give you- it’s not rocket science and it has been wildly successful for many, many people. Also, he emphasizes the importance of giving to others in a way that speaks to the individual; the 10% tithe does not need to be tied to a religious organization.
He’s pompous and judgmental in his delivery and in the way he handles callers. I find him off-putting–not because of what he says as much as the way he says it. That being said, if helps people with their debt, that’s good.
Agree with @Bromfield2 - and his judgmental tone reminded me of Dr. Laura. Blech.
From the NY Times business section, re books by Ramsey, Ormond and Kiyosaki:
Reconsidering the Advice in 3 Popular Personal Finance Books
https://www.nytimes.com/2019/10/11/business/suze-orman-robert-kiyosaki-dave-ramsey-books.html
I think that’s a valid criticism but I would also imagine once folks get out of debt and have learned a little about investing, they move along to some other sources.
And after out of debt, lots of choices of advisors or institutions.