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Dave Ramsey is trending. Good time to again point out the guy is a two-bit charlatan that makes money off the backs of good people just trying to stay afloat financially. His comments on stimulus $ couldn't be more out of touch. $1,400 to much of the bottom 25% can be a lifeline.
That isn't to dismiss everything he teaches. Some is quite practical & sound advice, but taking a single source on something as like personal finance as gospel is dangerous, particularly when said source has a tendency to grift w/ overpriced literature & seminars.
A few areas where he's dead wrong...
"Debt is bad"
Debt is inert. The +/- aspect of it is entirely dependent on each situation and the financial health of the debt holder. High-rate credit card debt is bad. Sub-prime debt to a well-off person, OTOH, is strategic & good.
"Debt is bad"
Debt is inert. The +/- aspect of it is entirely dependent on each situation and the financial health of the debt holder. High-rate credit card debt is bad. Sub-prime debt to a well-off person, OTOH, is strategic & good.
"Paying off your smallest debt balances first"
Fine if you lack discipline & can't handle maths. For those of us who can, you generally always pay down your highest % first, and never pay off debt early that carries a % lower than what you can return via investments.
Fine if you lack discipline & can't handle maths. For those of us who can, you generally always pay down your highest % first, and never pay off debt early that carries a % lower than what you can return via investments.
"Cut up your credit cards!"
No. If you lack discipline, don't have your finances in order, and are very impulsive, fine. Not that person? Ok, use a credit card & pay it off. Collect the rewards. Utilize the travel, security benefits. No reason not to if you're responsible.
No. If you lack discipline, don't have your finances in order, and are very impulsive, fine. Not that person? Ok, use a credit card & pay it off. Collect the rewards. Utilize the travel, security benefits. No reason not to if you're responsible.
"Pay cash for a used car"
Again, if you can't handle the discipline of credit, go for it. If you can handle utilizing credit, why not buy a car w/ a 2.0% rate? Pay it off over 4-5 years & put that up-front $ to work elsewhere.
Again, if you can't handle the discipline of credit, go for it. If you can handle utilizing credit, why not buy a car w/ a 2.0% rate? Pay it off over 4-5 years & put that up-front $ to work elsewhere.
"Pay off all non-mrtg. debt before saving for retirement"
This is the worst of all. Aside from things like payday lender loans, you need to be contributing to your 401(k) up to your employer's match. Failing to do so is throwing away free investment $ w/ immediate 100% return.
This is the worst of all. Aside from things like payday lender loans, you need to be contributing to your 401(k) up to your employer's match. Failing to do so is throwing away free investment $ w/ immediate 100% return.
Bottom line, Ramsey likes to use extreme blanket rules for every case rather than address each case on its own merits. Everyone is different, and so are their financial situations. Blanket rules are for couches, not personal finance.
I'll end it with this: When a charlatan worth close to half a billion goes on TV & says stimulus checks, much of which would go to people unemployed and/or on the brink of eviction, is a terrible idea, it's a little tone deaf & kind of fucked up. In short, get fucked Dave.
