People Under 40 Don’t Like Dave Ramsey. Here’s Why.
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- čas přidán 25. 07. 2024
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The Wall Street Journal had an article about how People Under 40 don’t really like or relate to Dave Ramsey. As I was reading it, I felt like there were quite a few good lessons we could take from it. In this video we go through the article, talk about the points I thought were interesting and what valuable advice we can take from it.
00:00 My thoughts on Dave Ramsey
01:35 Younger people have increased amounts of debt
04:03 Learning about money
05:39 Are credit scores important?
07:20 Is the debt snowball a good method?
09:14 We can learn from everyone
*I am not a licensed professional or a financial advisor. This content should not be taken as financial advice. It is meant for educational and entertainment purposes only. All opinions and perspectives are based on my own personal financial situation, experiences, and goals. Please ensure that you do your own due diligence before making financial decisions and/or meet with a professional. Links above include affiliate links, which means I may receive a commission at no additional cost to you.
Dave's advice is terrific for people who have no idea how to manage their finances - which, judging by the numbers, seems to be a lot of people.
Which is exactly why is advice is so valuable. Most people really do suck at managing their finances and doing math.
@@Drarkiee What time share does Dave sell?
What i like about daves approach is if you follow the rules exactly you will never have money problems. Its that stupid simple. Its not easy to follow his rules but its impossible to mess it up.
@@Drarkiee 1st if you followed his rules exactly you wouldn't have debt. Regardless - sure paying off high interest first saves money but you don't go into more debt. If you literally are paying out more than you make. That's unsustainable regardless of avalanche or snowball.
@@Drarkiee pretty sure he didn't sell people time shares and he thinks they are awful.
He shilled a "get out of timeshare" company that was trash.
27 here. You can always learn something from different mega investors, take parts of it and use it to formulate your own investing and saving plan.
I think Im more confortable to listening to people older than me when it come to stock market because they got more experience. Wich is a key factor in my opinion.
31 here, 9 more years of hating this guys guts….then I guess I will have to start liking him
The debt snowball works. I have used it more than once in my life. Because the money that you used to pay a debt can now be added to the payment of the next debt. That’s how I became debt free.
The snowball works but don't follow his investment advice.
@@thedoor5442which part?
Investing in mutual funds with a financial planner. The fees from the planner over a thirty year period will eat up two thirds of your gains! And they are taking no risk you take all the risk! Better to follow John Bogle and Warren Buffett and invest in S&P 500 index fund like VOO or VTI they have very low fee's and beat out about 92% of all funds !@@gilligan1350
Dave Ramsey is great, but I didn't follow his rules perfectly. I took a piece of this and a piece of that and found my own way that works best for me, but the general idea was PAY OFF DEBT.
To me this is the best approach - take the things that work for you and add other things from other people.
Indeed and same here. I love his basic methodology but still use credit cards, pay them off completely before any interest accrues, and then use those points to my advantage. I also take good care of my credit rating and it's come to be a great asset in certain situations. The main goal is to pay off debt, learn to delay purchase gratification, and make wise financial decisions. You can do that with his basic plan and then use what works the best for you.
@@mattderron You mention the "all or nothing" approach with Ramsey, and that has always been my biggest issue with him. Instead of acknowledging there are other "options", as you also mentioned, he is combative and condescending about his way is the only way. All debt is bad. And then you get millions of his followers parroting the same thing, which could potentially limit some of them significantly without them even being aware, because they weren't given any other options.
My wife and I have a seven figure net worth. We have a mortgage and car loans. Why? because every cent of excess cash flow is directed to tax deferred accounts instead of trying to be debt free. Doing this saves us so much money in taxes that any interest we pay is of little consequence. Tax savings and company matches are almost $30,000 a year. This is like, a "tax snowball".
Should we not defer income? should we have bought a smaller house? not financed the cars we enjoy? I don't care. we built our wealth using debt as a tool to significantly catapult our net worth over the years. There are certain income levels and tax situations where this is absolutely the best way to operate. But unfortunately, in my opinion, Ramsey would steer people in these situations into lower returns.
Very thoughtful Matt. Dave's message of living within your means and trying to put aside something for the future really resonates, but his credit card stance is not optimum for a responsible persons' finances. I think he just knows that many people can't resist using their credit card for things they can't pay for and so for those many, no credit card is the right choice.
Disagree on our expectations, I'm late X and if anything expectations are going down. The issue is we're spending ridiculous amounts more for less, and there is a huge disconnect between the official inflation rate and, you know, inflation, that is not capturing it
This may be true on the big things (house, car, etc) but I think where it shows up is in the little things (starbucks, eating out, clothes, etc). But obviously like anything, this will be on an individual person to person basis.
Thank-you for the weekly email.
The first time I heard a debt free scream. I was hooked.
I read that article the other day, too. I'm surprised you didn't comment about the girl at the end who has decided she's just never going to pay off her debt that's her whole life plan going forward. I mean, I guess she could run for Congress....
When I was in my 20s, I leased a Mercedes and swore I never wanted a paid off a car. 🤦🏽♀️ Thank God I wisened up!
It's awesome that you took a negative with your manager and became someone better! 👍🏼
Totally agree with your comments re: people just want you to give them the answer even though you know nothing about the 25 important pieces of info it would take to really provide a comprehensive answer specifically for them.
Teach them to fish!
It's even better when HR mettles with performance reviews because it's tied to raise amounts. So no one is allowed to be rated as anything other than average. Absolutely kills any motivation to do anything other than average.
I agree, but as a manager I think over 90% of the people under 30 I've worked with think they're absolutely killing it, when in reality they're just doing their job. There's nothing wrong with just doing what they're paid to do, but it's nothing special either.
@sherlockrobin597 I'm not going to go into my specific situation, but it was an acknowledged snub. Especially when your over performance had a measurable material impact on the stock price. Got poached by a different department after that.
Well said!
Some really great points in this one. Dave Ramsey advice is great in a general sense. You just have to apply the teachings that suit you.
Greetings from Denmark. Nice to hear someone who stands up for someone else, over there...From over here (DK) it always sounds like you are so divided. Continue the good work...
Thanks!
Good video! Like your style.
Thanks!
Matt, great content as usual
Thanks!
I’m making a bit less not using leverage and debt than I was before but damn it feels good. Debt is so expensive right now anyway, all cash investments and what is wrong with like a 7% bond right now? Love saving 1-2k per month. I do use CC for the points which are helpful.
I went through Dave's Financial Peace University and it helped me put my financial house in order. Debt snowball works, once you pay off that first small debt it really moves you forward. I follow about 85% of his advice.
That’s awesome!
Love the videos, very helpful and educational. Keep it up!!!
Thank you!
Great video
Thanks!
Dave does a good job describing how he personally lost with his real estate because he was highly leveraged and when things fell apart it came tumbling down and he couldn’t stop it. He wasn’t in control. I liked a lot of his suggestions,but everyone’s situation is different and many can be applied to help you out of debt. Have to change mindset about money and see it as a tool. I gave his book to a colleague and she said oh I can’t do that. She gave to another colleague who had applied many concepts ,paid off her mortgage early and has lots in savings.
Great job. Your channel is on my list of recommendations to my adult kids as they begin their investing lives
That’s awesome, thank you!
I just love his goofy callers. His wannabe co hosts crack me up too.
Good video. I think your point about hyper-consumerism is so very true. I see it every day. My wife and I, thankfully, are on the same page financially. We are able to enjoy ourselves, take vacations and whatnot. We also have a reasonable balance of wants vs needs. For us, as median wage earners means we aren't out every Friday and Saturday trying load up our social media with over the top experiences. Again, we do that on occassion...so many people are out there every, single weekend and then refuse to look in the mirror when they think about saving for the future, emergency fund, etc...
What’s your take on “the wealthy barber” book?
I haven’t read it, is it good?
The Ramsey Way is not optimal for the financially literate and fiscally responsible. However, it works very well for the other 90% of the population!
It’s also a great place to start. I’d say there are probably a good number of millionaires that started as Ramsey disciples and “grew up” along the way, eventually implementing the responsible use of debt to enhance investment returns, responsible credit card use, not paying off a low interest mortgage, etc. as they became more educated and financially aware.
You stole my thoughts.
The problem with Dave Ramsey, is he hasn't adjusted his numbers for inflation since the 90s. 1K of emergency money, that's 2 weeks or less of most peoples spending, compared to the 3 months most suggest. 20% down, 15 year mortgage, with today's prices that's 4-6K per month, that's not feasible for 99% of the US.
$1k in 1990 is $2.4k in 2024 dollars if you put in the numbers in an inflation calculator. I think Ramsey has done a good job, but yeah I think he needs to revise the emergency fund amount. Say maybe twice your highest insurance deductible (auto or home) or something similar so it keeps pace with inflation. I get it that they want people to feel the urgency, but it does seem low.
What are the odds that an emergency is going to come up that is more than $1,000, even in 2024? Not impossible, but it is fairly low.
The point of the $1k emergency fund is to be a starter emergency fund to keep you from backsliding into debt if something unexpected comes up. Such as needing to replace a tire on your vehicle to get to work. The majority of Americans can't come up with $1,000 in an emergency without resorting to credit cards, per recent statistics. Dave Ramsey is trying to prevent you from resorting to using a credit card as an emergency fund because CREDIT CARDS ARE NOT EMERGENCY FUNDS! They're debt traps that people willingly climb into and let the banks exploit them at 29.99% interest.
After you pay off your consumer debts, ALL OF THEM (Credit cards, car notes, personal loans), then Dave Ramsey recommends building out a 3-6 month emergency fund of cash sitting in a liquid account. I would recommend aiming for one year, but 3-6 months is life changing. This changes the situation of "The air conditioner or water heater broke, this is a crisis, how do I pay for this?" to ""The air conditioner or water heater broke, that's annoying, here's a check come fix it now please".
The peace of mind to be able to turn a crisis into minor irritant by simply having an actual emergency fund can't be understated.
$1k wasn't enough in the 90s because it was never intended to be enough. He suggests a real emergency fund after you get out of debt.
Dave Ramsey is great for people with the plenty of money and optimal situations who can’t manage there money
Our education system falls to teach real life required knowledge. I think the “scared straight “ approach is necessary. Field trips to homeless encampments, bank loan application, rental property application, car repair shops.
While I have never read any of Dave Ramsey's books. I do know financial literacy is a big deal today than what it was before the housing market crash. I have met those with thousands upon thousands of debt from student loans and etc. You did hit the nail on the head when it comes to finance, it's a rollercoaster ride depending upon the maturity (I like to add this part into finance).
I do think Dave Ramsey's book is questionable and possibly outdated, but I think people should view as a guide even if they don't agree to everything he mentions in his book or podcast.
A lot of people have convinced themselves (some didn't take much convincing) that spending money is some kind of psychological need. I saw one response to Ramsey who said that not going to restaurants was, and I quote directly, "living like a medieval serf".
oh man that one made me lol 😂 I definitely think the extent to which we dramatize things has definitely reached new levels
Matt 64 year old. Ive listened to Dave Ramsey for years. He is like a country boy Drill Sergeant. But I believe he is grounded in an honest attempt to help people.
My dad told me when i was in my 20s That if your blessed with health your big expenses are going to be shelter and transportation.
The question is does your concern about what other people think eclipse the calculator. People dont like restrictions and banks and all kinds of marketers prey on that.
But math has a way of sticking around.
I like your idea about using a dividend stock to pay a bill.
I'm a fan of your holistic and ultimately healthy view on investing. And everyone's unique journey to get to a place of comfort with their own financial situation.
You raise a really good point that applies to all financial "gurus" that people would do well to think about. Not everything will work for everybody. For example, I love Warren Buffett and have learned a ton from his annual letters over the years. But the truth is that it is difficult for mere investing mortals to follow exactly in his footsteps. On the flipside, I disagree with most of Robert Kiyosaki's money "advice" as I know it will not apply to me. However I found his Cashflow Quadrant to be a useful kick in the pants for me to spend more of my energy on investing rather than only earning a salary. It's important to know one's temperament and then take an a la carte mindset to investing advice.
Appreciated your take on this topic.
Thanks I appreciate it! I do the same thing, I've read most if not all of the popular finance related books and there are things I took from all of them even if I don't generally agree with the author or all of their points.
Millennial here. I did take the snow ball advice to help me pay off my car and my private Sallie Mae student loans and then stack that money once things were paid off.
If I had listened to him after that I would not have purchased my home in 2021 at a 2.75 interest rate and would have been priced out of the rental market by this year, 2024.
I still have my fed loan student loans that I am paying on plus my mortgage now.
As my granddad would say eat the fish and throw the bones away.
His thinking is antiquated because costs are not going down and people who are very careful with their money are feeling the pinch these days. So you have to weigh what’s important to you and what your goals are.
I went with a modified snowball and saved my 0% interest credit cards for last.
"There's nobody on the planet you agree with 100%" - True, I don't even agree 100% with myself most days ;) As others have said Dave is good at helping people with little financial knowledge get out of the hole they've been digging themselves into. These aren't people that are going to follow some fancy optimized plan. What works for folks just starting down that path is a good simple actionable plan with some early wins to build confidence and commitment to the plan. And I get that his "zero debt" approach is part of that simple plan for people that have gotten into trouble by misusing credit. But I wish as a next step he'd moderate on that and talk more about managing debt and the full costs of borrowing.
I'm definitely the same (not even agreeing with myself 100%) lol
Dave Ramsey is the AA of finance… he is perfect for people who have absolutely no clue about finances and they need a rigid yet simple system to follow.
If you aren’t a “alcoholic” then his advice is archaic, outdated and does not maximize your ability to create wealth
But if you do struggle with debt or are have no discipline with money then it is worth a follow.
If not then I urge you to listen to others!
I’m blessed with no CC debt. While I have them I rarely use them.
I do have a mortgage and a Federal Student Loan that I am paying on. That was me and the late Mrs way To help our kids with college. Far less than their Sallie Mae loans. They had to have skin in the game.
I’m hoping to be debt free in the next 2 years. That will be a nice feeling. Except for my Simple IRA I have not invested much as I am trying to eliminate debt. I am letting my investments work for me as I pay off debt. I might be missing out on some bargain stocks but I’m tired of debt. As Forrest would say that’s one less thing to worry about.
I feel like Dave's advice is for people making $200k/year who don't know what to do with that kind of money.
Dave: how much debt do you have ?
Me: just my car note
Dave: I need you to sell your car and deliver pizza’s
Haha!
He has never said that.
@@lowestablishment887 yes he has, he literally told a guy to sell his car, buy a beater and to deliver pizzas
The stage 3 of a boomer was 100x better than a stage 3 zoomer
How does that belief serve you?
@@samharris82 found the blue pilled boomer
@@teaadvice4996 millennial actually. Just wonder how believing that boomers had it easier does us any good? We can’t go back. So now what?
@@samharris82 we're screwed now. Are u blind? Go back to your rich daddy
Millennial here. This is exactly correct. Having a whiny attitude not only doesn’t help you, it actually is working against you. The landscape has just changed. Boomers didn’t have the opportunities millennials have and certainly not the opportunities gen Z have. Their houses were smaller, less luxurious, and cheaper. Look for a 1,100 square foot home that hasn’t been updated since the 60’s and you will find yourself an affordable home.
His general advice is fine for people with poor money management. Where he builds up generational animosity is when him or his staff opine on other topics, like WFH, or job hopping.
I mean.. have you seen Ben Mallah's take on Ramsey's videos? I believe he called him an idiot on multiple occasions, and said that the dude is insane.
Ben Mallah is very much over 40, and I believe is worth over double what he is.
Investment strategy that works for one doesn't necessarily work for another (or at all). There is some level of luck involved in most things
I’ve also had issue with some of what Dave says, but like you I realize that the world is bigger than one person’s opinion. Most of what he says is great. Some is not so great. At the end of the day, you take what is of value from him (or anyone) and leave the rest in the toilet and flush. Simple as that. The world is too polarized and this is a great example of the issues that dogma and blind faith in anything cause. Always question thing and never stop learning.
Couldn't agree more, well said
Y’all are looking at Dave to teach you math but he’s giving you a psychology lesson
this is true of almost all personal finance issues to be honest
I learn more from people I dislike than my friends.
Matt, the real problem starts at the education level, which is both at home and schools. Where I went to school, there isn't even a class for personal finance. The best we had was how to balance a checkbook. Not effective at showing what money really is.
I also think the idea that college is being crammed down our throats to the detriment of the upcoming generations. Stacking up a six-figure debt for a 35k salary isn't smart.
Add to the fact that investors come to the bowl more often than not at a point in life where the 8th wonder of the world can not help them, and you have the recipe for modern America. Fear and delayed retirements or no retirement at all. My 3 cents there.
I think there's a lot of truth in what you're saying. I used to feel strongly about the education piece in high schools as well. But I've kind of changed my mind on that. Just because personal finance and investing can be so different for everyone depending on their situation. I wouldn't want or expect a normal high school teacher to do that well on a consistent basis. Maybe if they did something where all the students get to take a course tailored to them from someone who does it for a living. I don't know. Lot of bad information out there that can hurt more than help.
@mattderron Not sure the ideas align. I'm not suggesting they teach how or what to invest in. Just that investing early can reduce the individuals cash needs to succeed in investing. They could literally show an s&p index fund over 30 years versus 15 years, for instance, to get to 500k and what it would have taken. It's not rocket science but very reasonable and true.
For sure, basics of "have a budget, spend less than you make, put money away in a 401k in an S&P 500 index fund" absolutely can be valuable. The challenge will be with addressing questions from everyone who has a totally different experience with money in a balanced and non-biased way. But obviously I think any conversation about money is probably more valuable to kids than other stuff they are learning now.
I don’t agree with all Dave Ramsey recommends, but he does have some good principles. Anyway, younger generations will always blame the older generation for their financial problems. GenX blame boomers, millennials blame GenX, etc… it’s easier to complain than to take action and ownership. Unpopular opinion 😂
yea bc ppl always wanna feel like the victim . bc nobody grown enough to blame themselves. and fix themselves. whole lotta
pu$$ys out here.
I didn't buy a house until age 40, and at that point I paid cash for it. 20's and 30's were quite frustrating for me, but once I finally did have the house, that irritation faded away. It will come. Don't force it. Save.
I actually know multiple people in their 20s and 30s who listen to him
I am one of them and Dave's advice is spot on. I took heavy financial losses deviating from the Ramsey approach. I thought I could outsmart the investment world and got schooled. Lesson learned. At 36, I have never had a credit card and I never will. The banks can save the " Debt Score" for the brainwashed masses. I'm good 👍. Apart from my previous losses I'm doing very well financially. I recognize that it is God who allows us to acquire wealth and not ourselves. Dave points people in the right direction. The banks only want you to focus on 2% cash back in the form of a statement credit. No thanks.
I’m 56. So you’re telling me younger people have an issue with being told to do what’s in their best interest?!?!?! hhNooooooo??? I also don’t agree with everything Dave teaches, but I listen just about everyday and hearing how much debt other people have-like, ridiculous irresponsible amounts-listening to Dave keeps me in a healthy fiscal mindset. I never had debt after college but I have paid off my car, nearly paid off all my debt and have savings and invest.
Young people like shortcuts. THERE AIN’T NONE when it comes to money!!!
I'm 37, and I respect Dave Ramsey. He may give extreme advices like no credit cards and other forms of debt, but he does help people how to get out of that hole. But I don't agree with his investment method of high yeild mutual funds.
Same for me, I don't agree with a lot of stuff, but do think he helps people in a certain financial situation (debt)
I think what I don’t like about Dave is that his advice will only get to the Middle class not Rich.
I prefer someone like George Gammon, Mike Maloney, or Peter Schiff when it comes to money. Also J Bravo has a good stock market course.
I think there are stages of financial advice people go through. Dave to me is about getting out of the struggle period which is critical for most people
Much harder to save money than spend it. If people got off social media and did something productive they wouldn’t be in debt through buying “comfort purchases”. Ramsey is wrong about certain things, but points you in the right direction. Invest in a low cost index fund every month and keep debt free. Alternatively, spend too much and keep working until you’re 80.
A lot of younger people, especially ones in their 20s, have been conditioned to not listen to advice from anyone 45 or older. My daughters in their early 20s love to say that "older people are out of touch on how to approach finances for people our age". They like to say, "You're not supposed to deny yourself your daily comforts, purchases that make you happy," "I'm supposed to have a rich life now, not 20 years from now" etc. And they refuse to listen to me because I'm in my early 50s. One of them just came to me asking me for a loan because she's massively in debt due to all of her "comfort purchases" and habit of not denying purchases that make her happy. The other one is in the same boat but is holding off asking me. I've never read a Dave Ramsey book and don't agree with many things he says, but I have my own way of doing things that has worked out well and I know he's helped a large number of people get their act together.
Yup that's tough - thats part of the "different expectations" I was talking about. I see it in my own kids as well. I read the "Total Money Makeover" when it came out and there is some good stuff in there for folks who are struggling with spending more than they make. Again, there was other stuff I didn't really agree with but a big challenge for young folks is the "I need to be happy now" mindset. In some ways all kids are like that (I was until a certain age) so hopefully it's something they grow out of eventually.
Dave ramsey saying you cant be trusted with a cc but you can beat the market with a mutual fund in the same breath bothers me. You cant reliably beat the market in general
Dave pushes active funds over passive index funds, that's a red flag right there.
I don't agree with all of Dave's beliefs but I do understand why and where he is coming from and I actually do believe they are most likely the best for your average Joe.
Like the credit card thing, it's discipline. CC isn't the fault. It's that it opens the door to money you don't own and opens the window for bad spending habits. I pay my bills but it doesn't mean I have good spending habits.
And the all or nothing approach is like addiction. If you give yourself room, you open yourself to failure. You give yourself a cheat day? You'll end up with more cheat days than good days. It's not a fact but just opens that up and we, humans, aren't perfect. And it's much easier to plow through the first stage and maintain a good habit than to maintain a mediocre habit where you're fighting against it constantly.
I think Dave is OK for people that have absolutely no clue but he's pretty crazy on a lot of fronts. I think you can get better advice these days from multiple sources. We can thank him for his service and move on. One of the issues with Dave that you didn't really get into is how much he shits on other approaches (even things that 99% of actual financial advisors would agree with). It's not compatible with real learning.
It’s wild that people who have yet to pay off their debt are make as much as Dave has are chirping at Dave and people are listening. Take the parts that would work for you and leave the rest.
Agree, we can take value from everyone, even if we don’t 100% agree with them
On the snowball method… 100%… it’s the same reason we love dividend investing… the psychological effect is huge.
Unfortunately Dave Ramsey is stuck 20 years in the past. And leans too much into politics, god, and guns when talking personal finance lol 😅
Yeah but he's right on politics, God and guns. Democrats sending billions abroad and welcome dangerous migrants across our southern border. Better protect your family, especially if you live in Texas.
I’m 48 and I absolutely can’t stand Dave Ramsey. It doesn’t mean a lot of his advice isn’t correct. He a bit draconian for me and at times seems like he’d have you living in a cardboard box. I believe a responsable use of debt is crucial to getting ahead.
My beef with Dave is his delusions. He still thinks index mutual funds return 12-15%. He has no clue what a real house costs relative to his wages. He has no clue how he grew up in such a financially simplistic world where go to work = get paid enough to buy a house. My index funds net me about 6% CAGR. Even being top 25% income earner, I still don't qualify for 95% of the houses on the market. Never mind the conversation we should be having about what the hell someone in the transportation industry knows what the term CAGR means.
I agree I think his investing advice is pretty bad, he’s good for other stuff though depending on where someone is at
Dave Ramsey gets too much hate. I highly suspect that, the older we all get, the more realize he is right. Outside of leverage on business or real estate, no one ever said “I got rich from debt.” It is a small percentage of the population that leverages debt to increase wealth, outside of a home they live in.
I don't know how many people are using debt to get rich per se (outside of real estate investors) but more using debt to live. The reality is the ability and discipline to use debt successfully is going to be different with each individual and their circumstances
I have no business or real estate outside of my home. Probably not "rich" by today's standards, but a low seven figure net worth makes me pretty comfortable, and no concerns about income the rest of my life (I am 49). I would guess that I am at least 50% wealthier carrying debt vs trying to pay it off. My guess is that most people would scoff at that even being possible, but if actual math is applied to everyone's personal situation instead of the myopic mantra "debt is bad", better opportunities can be seen.
When I see a 26 year old nobody calling out a guy who’s achieved great wealth and success following his own advice I just got to laugh. The bottom line is people spend more than they make and that’s stupid. I lived frugally well under my means - retired at 40 debt free and doing anything I want in life now. Those who thought I was poor back then because I didn’t have a fancy car or house are now unable to retire and have nothing to show for years of work.
Completely agree. I mean, Dave Ramsey isn't perfect, but he's a canteen of water in a desert when it comes to Americans and personal finance. Americans need help BADLY as most people live paycheck to paycheck and are in a lot of consumer debt. Forget about retiring.
I’m 24 years old and Ramsey is incredible, most people my age have issues with authority or have a bias against him because he’s an old Christian southern white guy.
(Even though they’d never admit that)
But wisdom comes in many forms, and you have to be able to learn from good proven people no matter what you assume about them without letting emotions get in the way.
Quiet the ego and look for the lesson.
Very true, most people would rather “be right” or criticize someone rather than trying to find value in other perspectives. If you’re thinking that way at 24, you’re likely to do very very well
@@mattderron Everyone has their call to the alter moment.
I ignored guys like Dave Ramsey and was more interested in CZcams gurus like Tai Lopez, Cardone, Iman Ghadzi etc and lived my life through that lense and finally made a huge mistake, a 25k level mistake
I was doing great until I wasn’t and at around 22 I looked up and all I had was a few univested saving some crypto and was in consumer debt for the first time ever.
It was learning from much older sources like Dave, JL Collins, George S Clason that truly save me from a horrible financial path
Ramsey is the "Dr. Phil" (at peak popularity) of his niche - his extremely folksy way of speaking disarms listeners (especially older ones from middle America, where he sounds relatable much like a neighbor you invite over for dinner occasionally). Style over substance. That perceived relatability ("he's one of us") makes him extremely attractive to the Walmart-shopping Ohio couple that makes $50K.
He doesn't necessarily give bad advice; just a one-size-fits-all. Avoid credit cards; mortgage over investing, S&P500 and nothing; etc. But much of his core audience benefits from not being overwhelmed by too many choices and nuance. They prefer (and can only process) simple, black/white advice. So he's not for the more informed self-investors.
I prefer Caleb Hammer
Haven't heard his stuff
@@mattderron look him up, Caleb Hammer Financial Audit. He’s a 28 yr old from Austin TX who has people from all walks of life on his show
I’ll have to check it out, thanks!
I'm 67, have only been investing since 2020. Figured out early on that DR was not someone I want to follow, and I don't, but occasionally I'll listen to his perspective.
Didn't you know, people under 40 have all the answers.
Bottom line - people need to think for themselves and not just do what these youtube "gurus" telll you to do without looking at it yourself too.
Dave Ramsey is popular just because he gives information for the 'average' American, who is TERRIBLE with money.
Basically as soon as you are out of debt besides a mortgage, you should 'graduate' from Dave Ramsey.
Dave is bad for everything other than 'get out of debt'. That's why I don't listen to him as he's more of an 'entertainment' finance person rather than someone who is actually giving useful information. Dave Ramsey doesn't even have any CFA / CFP certifications, it's likely done by intention because he doesn't have to disclaim anything or follow harsher regulations.
I agree completely. Problem is most Americans are stuck in the "I'm in debt" situation and they don't seem to understand how to unplug from consumer culture and keeping up with the Jones. That's the value Dave brings, telling people to stop trying to impress strangers with borrowed money. As well as how to unwind the debt mess they got into. Other than that its best to look elsewhere for tips on what to do with the savings you end up with at the end of the month once you're debt free.
Ramsey doesn't tell people that he started with money and if you come from wealth it's easy to "pull yourself up by your bootstraps" ... besides, he is a complete creep
Uh, he went bankrupt and restarted from zero.
You’re right, I don’t like him although I just bought his book😂 I’ll read it soon to see if he’s full of shit or not
Not just under 40....
I don't disagree with Ramsey. It's just that his advice is being given to people who make a lot of money and are being stupid with it. Most people can barely afford rent these days. "Put aside $1K/month" is good advice. But if, at the end of the month after paying for rent, utilities and, you know, eating you only have $12....then what?
Yeah what I feel is missing a lot of times is people realizing that they really just need to make more income. Whether that is growing their skills to get a better job, or building a side thing, or whatever needs to happen. Good income solves a lot of problems. That’s one of the reason why I touched on it in my latest video.
Good guy. Misunderstood.
Dave Ramsey is like Sesame Street. If you are learning ABCs, Sesame Street is fine. But you'd grow out of it because that's all the show can offer. Dave Ramsey is a show for total beginners. If you find yourself calling BS on a bunch of Ramsey's overly simple takes, it's time to move on.
I didn't like him when I was under 40 and I still don't like Dave in my 50's.
His advice is finance 001, not 101 but 001, mixed in with huge bias and infantilizing of his listeners and customers. He seems to give advice like everyone makes the same mistakes and will regardless. His investment advice is also BS. Assuming 12% returns, clearing not knowing what sequence of returns risk is (claiming you can take 8% per year in retirement and not run out of money).
He might have "helped" lots of people with their current financial situation, but I get he also put an artificial ceiling on nearly as many people....until they realized that some of his advice is just stupid.
you prolly dont like him cuz you prolly made hella stupid decisions ya whole life and you have no assets and nothing in 401k and you prolly still working. wishing you can retire. ramsey gives the best advice. you dont like hime cuz you prolly in debt still at 50
He's a good starter perspective on personal finance. If you expect one man to transform and guide your life from cradle to grave then you're doing living wrong. For most people, someone telling you to get out of debt and stay out of debt fixes 90% of people's personal finance for the better. Period. As far as growing wealth, that's a whole different set of financial advice that I'm sure other people can chime in on.
Ramsey is currently facing a lawsuit for taking $30 million to promote a timeshare company that committed fraud. He gave bad advice to his fans in exchange for a bribe.
That got thrown out of court months ago.
the problem is that they cannot afford a house, their men are not economically viable so no family formation, later marriages, delayed adulthood. heck the avg age of home buyer is 53, in 1990's it was 33. cars cost a fortune, education costs a fortune. their complaints are valid, but they have no political representation.
In general I don’t like using generalizations especially for a full generation. Lot of variables for each person on what they can do to improve their situation. But like I mentioned each age group goes through a different part of the economic cycle so expectations for each generation could be different
Cancel the younger people.
People hating Dave Ramsey is bizarre. If you follow his advice you will do great financially.
His book changed my life
I agree, the majority of Americans are terrible with money. Especially the people who think all college degrees have a positive ROI... and then are shocked that they have to pay back student loans they willingly signed up for with a blind assumption that they're going to make money off their dubiously useful piece of paper.
Yet, these folks will attack Dave Ramsey as out of touch when the facts of the matter speak for themselves. The majority of Dave Ramsey's haters are broke and or deeply in debt. I question if on some level their is a lack of ability for these people to comprehend the concepts he communicates. I don't understand how people could be so willingly ignorant to their own detriment.
I don't agree with Davey Ramsey on his social conservative principles (marriage, etc. )as I think the culture is too far gone to expect that kind of decency from other people in order to trust them to enter into a contract like that. However the personal finance advice is spot on.
Here's my view. Ramsey is worth at least $200 million. How much are his haters worth?
The problem is he's got nothing after "don't spend money you don't have" and opines on things he's not licensed for (like investing) and throws tired insults like a Twitter troll.
Dave is good for people who spend too much and need to get out of debt / struggle mode. Beyond that, I think there are probably better options
The reason young people don’t like Dave is his advice is simple and boring. People don’t like boring advice that says budget, work hard and invest for 40 years. People want quick money that’s passive and requires as little effort as possible
I don't like Dave Ramsey because he's a malignant Boomer who's good on one topic (mostly) - get out of debt - and completely out of touch and nasty on others.
No, Dave, quiet quitting isn't stealing.
No, Dave, back to office isn't happening.
Who the heck would ever want to work for him?
Dave's advice on marriage is outdated also. Most people out here aren't marriage material in the sense that they aren't willing to sacrifice for the greater good of the marital unit. We live in a ego-centric consumer culture punctuated by Instagram posts about how much we consumed at any given point. Dave picks up on that when he tells people to stop buying things on credit to impress strangers.
What Dave doesn't understand is that the psychology is so deeply ingrained that most people aren't willing to make personal sacrifices for people, let alone someone they swore till death do they part that they will honor and cherish. This isn't the 1950's anymore. Most men will/are ending up alone in front of video games, and most women will/are ending up alone with boxes of wine and cats for companions because neither want to settle. This is happening NOW, not a theoretical outcome.
I’m 48 and I don’t like him either!
If you follow Dave’s steps, you WILL be successful. It may be boring and slow but it works. No doubt.
I mean a credit score, is a tool, a tool specifically for debt. He’s more interested in building wealth than paying banks interest. You should be paying yourself interest. If the US government puts through this stuff soon, it’s going to affect these credit cards and their rewards, then I’ll really have no reason to use them ever.
Dave is out of touch completely.
Almost as out of touch as 99% of America
He’s a entertainer and can’t be held liable
Every generation gets weaker and weaker
Brokies
I’ve been listening to Ramsey since 1995. I find it funny that ppl like to criticize a self made BILLIONAIRE for giving advice for reaching financial peace. You don’t have to agree with every aspect of his plan but unless your net worth is FU money then shut up and prove your financial peace journey as being a better plan with at least a few zeros to your net worth as proof of execution.
Billionaire?! I looked up estimated net worth, 55 MILLION. Very rich, but a slight difference. Lol
@@CraigandMandy1 Wrong. He owns over $600 million in paid for real estate. Doesn’t even include the value of his businesses. His corporate headquarters alone is probably half billion and that’s got nothing to do with the value of the revenue stream. Just the land and buildings. He lives and works in one of the most expensive counties in the country. He’s publicly stated they are taking in over $300 million a year. The buy out value of that alone is a BILLION. Find some better info.
Additionally, he’s said he bought over $50 million in real estate during the recession of 2008 at market lows. If he’s only worth $55 million today then the value of that investment hasn’t moved at all and we know that isn’t true. I live 30 minutes from his headquarters. I can assure you, property values around here have gotten stupid expensive last 15 years. As has everywhere else.
His net worth according to investopedia is 200million. Nothing to sneeze at, and your point is still well taken, but a far cry from being a billionaire.
I don’t like Mr. Ramsey because he talks shit and mocks my student debt. He’s Hounestly a little ageist.
If Ramsey can make it anyone can. Hes not that bright
He may not seem bright until you compare him with 99% of America
That’s ok they can stay losers and broke 👀🫣😳😉😉😉😉😉😉