who likes dave?

Question

who likes the budget man dave ramsey? yes or no, tell why especially share your story if he has been a big help.

Answer 1

WHO?

Answer 2

A lot of people love Dave Ramsey, and certainly he has lots of valuable advice to give, but too often his advice is just too rigid.

For instance, on the July 20th Hour 1 episode, a lady called saying they were completely debt free, including the house they lived in, and they had amassed a great deal of savings and had been maxing out their retirement plans for the last 5 years, and had a good income. They wanted to buy a $150K plot of land to build their dream house on by paying 20% down and borrowing the rest.

Dave's answer was No. If they can't pay cash, they shouldn't do it. "If God wanted them to have that plot of land, they'd have the cash to buy it."

To be fair, he did discuss making another arrangement, namely paying $10K for a 1 or 2 year option on the land, but that's even more risky than this lady's plan. If they can't come up with the cash by the end of the option, they lose $10K. In the mean time, they were to scrimp and save and live like misers on "beans and rice" while they saved the $150K

Screw that!

Since when is borrowing to buy land to build your house on a bad move, when you otherwise have no debt, plenty of savings, and a good income?

Debt can be a productive thing, when used to buy assets or tools that will boost your income or grow in value, and as long as you have the ability to pay it back without difficulty. Certainly land and a house fit those definitions of productive debt.

Too often his advice is like that and that's why he's just not for me. However, people who are inspired by him, and who follow his financial teachings, do wind up out of debt and much better off financially than most other people. So his plans and teachings do help people.

I also dislike the fact that Dave has become an industry. Buy his book, buy his course, go to this seminars, join this club, etc. There's an uncomfortable level of exploitation going on in the name of helping people who are in financial trouble. In some ways, it's almost cult like, especially since religion plays a big role.

For radio financial advice, I much prefer Clark Howard. He offers good advice on saving and spending money wisely, investing, shopping, and avoiding being ripped off. Best of all, other than a couple of books he mentions every now and then, everything he provides is completely free, including a great deal of good info on his web site at Clarkhoward.com. There's also no cult like atmosphere in what he does.

Answer 3

I like him, but he seems really arrogant...like he's adamant about not filing bankruptcy. That's good, but I think some people have absolutely no other choice. Most people would rather not file bankruptcy if they didn't have to. But if you only make so much and owe thousands and there's no way you'd ever be able to pay it off in your lifetime, what good is a budget? Yes, it kills your credit, but sometimes there's just no other way. He's just has an attitude in my opinion. I'm sure he's helped a lot of people, though.

Answer 4

I was just on his site, 30 seconds ago and I think he knows what he's talking about. My friend uses his envelope system and she swears by it. I'm going to try itand if it works for me, it will work for anybody!