Is Dave Ramsey A Scam? [Finance Guru A Fraud?!]
Welcome to my Dave Ramsey Review!
Is Dave Ramsey a scam? This is how most people think of him. Not only him but to most financial experts and business education.
Ninety-five percent of the population thinks these groups of people are crazy enough to fight off the conventional strategies to earn wealth.
Want to See the #1 Online Business Opportunity in 2019?
We've reviewed +600 online business opportunities on YourOnlineRevenue.com and FINALLY found the best one. Put your email address below to learn more...
We respect your privacy. No Spam.
Before we go through the details of the person we’re going to review today, let me first introduce to you how to make money in a legit way through this FREE training. If done right, it allows you to earn more or less $2,000 within 20 hours as Roope did recently.
Now we’re all set. Let’s dive into the post. Shall we?
Dave Ramsey Review - Quick Summary
Name: Dave Ramsey
Status: American radio show host, businessman, and author
Field: Personal finance
Price: $14.44 (per class/9 weeks); or $129.99 one-time payment for the whole class
Best for: People, specifically those in debt, who want to earn freedom from financial slavery by means of learning David Ramsey’s 7 Baby Steps that teaches students to save and live day-to-day life within the budget.
Summary: Dave Ramsey is an American businessman, radio host, and author whose works became a best-selling mania. His popularized concept “7 Baby Steps” became a trend as it simplified the complex financial education basics intended to teach the non-experts how to save and grow their money.
Is Dave Ramsey Recommended? Yes. His concept isn’t merely to make more money but to teach how to save for other investments. If you want to learn how to make money in a legit way, you can click the green button below and get started.
Who is Dave Ramsey?
Born as David Lawrence Ramsey III, he grew up in Tennessee and graduated at the University of Tennessee, Knoxville with a degree in Finance and Real Estate.
His background seemed a fate as he faced real-life struggle with his real estate business plummeted. In 1988, he filed for bankruptcy.
Because of his personal battle against financial recession, he began learning the concept of consumer financial issues from several experts he knew from his local church. One of them is the founder of Primerica, Art Williams.
Fast forward to the present day, Ramsey continues his endeavor to save people from the same (I should say the financial epidemic) issue as he faced before.
Ultimate 7-Day Course to Make Money Online for Beginners
No More Scams, Lies & Get Rich Quick Schemes. Get It Now!
He authored books, established a syndicated radio program, "The Dave Ramsey Show," and built a company, "The Lampo Group, Inc." for the same purpose.
Many influential groups acknowledged his endeavors leading to getting featured on media outlets like The Oprah Winfrey Show, among others.
How Does His Theories Work?
Ramsey is famous for his 7 Baby Steps as well as the debt snowball method, which experts criticized more.
Yet, Kellogg School of Management proved it works as per research studies. In addition to that, Harvard Business School supported that many people paid their debts more using his methods as well.
Hearing these concepts I bet you're wondering what these are. First, let's talk about Dave Ramsey's 7 Baby Steps.
According to his official website, the system intends to show how to save for emergencies, pay debts fast, and build wealth from even your small income. It's a step-by-step process as the name suggests.
Baby Step 1: Save $1,000 For Your Starter Emergency Fund
You need to make more money to set aside $1,000. That doesn't matter where your sources of income are as long as you prepare this amount of money first. Most of the time, this comes from your remaining money deducted from the expenses.
Baby Step 2: Pay Off All Debt Using The Debt Snowball
The concept teaches you to list all your debts from the smallest amount to the biggest. You start paying those with smaller amounts fast in bigger amounts and give a small share to the rest.
Once you finish the first debt, you proceed to the next debt on the list and do the same. Pay with bigger amounts than what's asked on the bill to finish paying everything as fast as possible.
You repeat the same system until you reach the last debt listed. While accumulating funds to pay these, don't make any additional debts. Otherwise, this won't do any better and won't make any sense at all.
Baby Step 3: Save 3 to 6 Months Of Expenses In A Fully Funded Emergency Fund
Aside from the emergency fund and paying off all the debts, you have to take off another emergency fund intended to cover 3 to 6 months of your expenses.
Baby Step 4: Invest 15% Of Your Household Income In Retirement
It doesn't mean you're preparing for your funeral. As young as you are, you can start setting aside some percentages of your income for your retirement.
It's time to get serious with it regardless of the age and background. Set aside 15% of your income for that matter and you don't have to rely on pensions as others do.
Baby Step 5: Save For Your Children's College Fund
Just so you know, parents tend to make a lot of debts simply because they have children to send to school. As long as you have kids, debts continue to accumulate under your belt.
To avoid that, even before you have kids, you have to save money for it. From the time they enter school until they finish college studies, you have to take responsibility and set aside the budget intended for that purpose. Not for your next car.
Baby Step 6: Pay Off Your Home Early
The mortgage is a big thing, you know. You have to make hundreds of thousands of dollars to make it. Other payments are good for 15 to 20 years.
In Dave Ramsey's system, you don't have to wait for 20 years to pay for everything. Pay it with extra money and instead of having a 30-year mortgage, adjust it to a 15-year, fixed-rate mortgage. You'll save more money.
Baby Step 7: Build Wealth & Give
As the last step, you realize how much money to accumulate from different sources of income to make this far. If you succeeded in the earlier steps, congratulations.
It's time to build your wealth and give back to those who need it. It's time to make a legacy after all the financial discipline you made over the years. Ramsey offers The Starter Special to serve its purpose.
How to Make Money with Dave Ramsey's Theories?
To make money with Dave Ramsey’s concepts, it’s not merely through becoming one of his affiliates or whatsoever. It does mean you have to apply the 7 baby steps to build your wealth on a long-term scale.
Given, I suggest you undergo the FREE program Roope introduces you to make an income - a passive income - to save and grow your money in due time. You see making more money in your youth doesn’t mean you rely on several short-term financial plans.
You have to consider learning how to keep your money rolling. Dave Ramsey’s concept targets those people living with debts and saves them from that difficult situation to obtain freedom from its slavery.
I noticed on his website that there’s an option for careers. If this is what you intend to do, he’s currently hiring for new staff in various categories, namely:
7-Day Make Money Online Email Course - 2019
Learn SIMPLE steps to make a LIFE-CHANGING INCOME online. I will help you hand-by-hand!
- Customer Service
- Public Relations
- Product Development
- Project Management
- Technology, etc.
Dave Ramsey [UGLY] Truths Revealed!
1. Credit Card Absolutist
As interesting as it sounds, but Dave Ramsey tends to exclude those with credit card problems. According to one blog I read, he mentioned that using credit cards is bad and that personally responsible people are those who don’t any of them.
For me, owning credit cards doesn’t mean it’s a really bad thing because it does help for less cash. But the person owning them is the issue, not the ownership itself.
2. $1,000 Emergency Fund Not Enough
In the US, saving money around this amount for the sake of emergency fund is not enough. Trent Hamm, a finance blogger, stated that there are many times (as a family man) that his account needed more than the amount to compensate than what Dave Ramsey suggests.
To do it rightly, he suggests not to hit the $1,000-mark immediately but to start small like saving $25 per week or so.
3. No Guaranteed 12% Returns From Stocks
During the 1980s to 2000s, there’s a noticeable 12% return at the time, which was also the baby boomers era leading to Dave Ramsey’s reference to guaranteeing the exact percentage of returns from the stock investments.
However, times changed. Many things happened and seeing the same percent for your returns isn’t realistic anymore.
4. Cutting Retirement Fees For Early Debts
Dave Ramsey teaches you to cut the retirement pay for the sake of paying early debts. This is the case if you are an employee.
Based on sources (and the current state of American employed folks), employers offer matching funds to the retirement funds to ensure their employees won’t starve as soon as they retire.
That means the intended share could be taken 50% for investing rather than following Ramsey’s advice of taking 100% of it for paying early debts. Hence, pay your debts slowly but securely.
5. Quick Fix System
If you notice, Dave Ramsey talks about how to pay off your debt fast regardless of the income sources you used to pay them.
At first, I was caught off-guard with it and suddenly wondered which of my personal belongings should I sell first to pay for everything I have to pay.
However, if you think about it, banks adjust their monthly bills to help you pay your debts safely. That’s contrasting to what Dave Ramsey says that it doesn’t provide you modest interest rates.
Following everything he said won’t work in reality, though there are some of his concepts bound to be sensible.
What I Like About Dave Ramsey?
1. Encourages People To Live Within Budget
Unlike Robert Kiyosaki’s lessons, Dave Ramsey tends to encourage people to live within the budget. Not only because it helps you pay your ongoing financial troubles but to aid you in growing your money in the future.
In contrast with his promises, Robert Kiyosaki tends to encourage people to do illegal schemes in a subtle manner for the sake of making fortune just as he quoted in one of his YouTube videos.
2. Sensible Finance Lessons
Let’s admit it. Learning about finance is a complex thing and understanding everything about it is a headache.
But Dave Ramsey makes a simplified version of how money works and how we can play around with it through the 7 Baby Steps.
3. Massive Following
He derived his massive followers from sharing his personal story as someone who has overcome the painful chapter of his life.
He’s a family man with a failing business. Imagine how it was for him if you were to put yourself in his shoes. But he didn’t stick himself as a lowly, pitiful man.
He stood up and faced it while he started to learn about personal finance. Through these, he has taught millions of people across the globe and became one of the leading figures in the niche.
Dave Ramsey Review - What People Say About Him & His Theories?
Across several blogs I read, many of them disagreed to Dave Ramsey’s suggestions. Most of them pointed out the irregularities of his lessons to the non-finance experts as he stipulated on his 7 baby steps.
"[Dave Ramsey] was telling someone to sell their fairly new average car and buy a beater. Terrible advice. Old cars break down left and right, and unless your mechanic and have your own garage with professional tools," one commenter ranted.
Another person who has read Dave Ramsey's book agreed to the fallacy of the 12% return involved. He said, "It's just misleading. Plus, he seems to recommend funds with either high expense ratios or front end loads."
He also mentioned rather than spending your investment to these kinds of investment, it's best to invest in low-cost index funds, which will "serve the folks better."
On the other hand, there are also some who said that they recommend Dave Ramsey's advice. "Just don't put all your eggs in one basket," Martin Molina, a commenter, said.
"His main point is to live below your means, save, and invest money, and never use credit cards unless it's a tiny fraction of your income."
Another ranter supported the claim and said that what he meant with $1,000 isn't the limit to the emergency savings fund. It's the beginning of it and it goes up to its maximum amount.
Candice Elliott of Listen Money Matters emphasized how Dave Ramsey simplified the complexity of finance, especially the 2008 economic breakdown to help non-finance experts to understand what really happened. He did it in comparison to how people lose weight.
"To lose weight, you must eat fewer calories than you burn," she wrote.
Is Dave Ramsey A Scam?
Based on the resources I gathered for this post, Dave Ramsey is not a scam but rather a legitimate personal finance expert you could look up to.
As many ranters reminded on the blogs I came across with, you don’t have to apply everything. Just choose a few of the system he introduced and simply weigh which of these are applicable to your reality.
You can combine the concepts David Sharpe teaches which tackles more of becoming an effective online marketer, Dan Lok who’s obsessed with his Wealth Triangle, Tony Robbins with embracing your own potential and strengths to attract fulfillment even in wealth, etc.
The point is that neither of these persons I mentioned is a scam because I followed them myself. Over the years as a writer and as someone with a few failed businesses, I knew how important it is to master the fundamentals of making money and growing money.
If I did, so can you.
#1 Online Business Opportunity
As I mentioned earlier, you can’t simply build wealth from paying off debts. You have to learn how to grow them. But if you don’t have any income source, how can you save and pay your dues?
Roope “Robert” Kiuttu, the founder of Your Online Revenue Ltd and a successful affiliate marketer, managed to run his online businesses and earn money while he sleeps.
Recently, he earned more or less $2,000 within 20 hours because of applying the combined lessons from different people, especially from the #1 recommended online business opportunity.
If you want to replicate his success as well as others who have undergone the same thing on their own online businesses, click the green button below and get started today.
You don’t have to say “I wish” but “I will.” It’s now or never, my friend.
Now that I shared my thoughts in my “Is David Ramsey a scam?” post, it’s time to turn the table and ask about your experience, in general.
What kinds of experiences do you have with David Ramsey? Is it worth your time, money, and effort?
Do you prefer to begin earning your first passive income through affiliate marketing or you rather invest your time, money, and effort to income-generating opportunities like this?
Let me know in the comments below! 🙂
If you need any help to get started making money online, don't hesitate to ask in the comments below and we'll be happy to help you out!