Skip to comments.TEN THINGS DAVE RAMSEY GOT WRONG
Posted on 03/03/2011 5:52:49 AM PST by TheSentry
(Excerpt) Read more at badmoneyadvice.com ...
Dan Kerr et al:
RE: The INCESSANT RAMSEY AD BLITZ
on 710-KCMO AM RADIO
Every hour 24/7 on 710-AM radio we hear
"EH FOLKS DAVE HERE ! "
Usually MANY TIMES PER HOUR !
"EH KANSAS CITY DAVE HERE"
This AM was the perfect example of
He's NOT a FINANCIAL ADVISOR !
At 8:45 AM, (check your on-air record)
this AM, it's time for "THE RAMSEY FINANCIAL MINUTE" of NO HELP
The caller, a small biz owner, asks for tax shelter advice.
Ramsey hems & haws around,
---> "Well, you could get a little 401K or a Roth, but that wouldn't
help with taxes. There isn't much out there for small businesses."<---
Is this the HUGE EGOTIST DAVE RAMSEY, FINANCIAL EXPERT, WHO IS SO FAR
ABOVE US THAT HE CONSIDERS US TO BE
intellectual "BABIES" ?
Condescendingly, he tells us to
"take the BABY STEPS" he recommends.
EH FOLKS ! DAVE RAMSEY HERE !
EH KANSAS CITY...DAVE HERE !
EH...DAVE HERE !
S T O P THIS DAMNED AD BLITZ
OF the hypocrite Ramsey w/extra AD bytes where he damns GOLD as an
Here comes "EH DAVE HERE FOR MY FRIENDS..." who buy your gold !
His SOLE claim to financial expertise is HIS PERSONAL BANKRUPTCY !
That's insane !
Would you want advice from a doctor who's made the MOST MISTAKES ?
A N Y O N E with common sense can tell
people to PAY OFF YOUR DEBTS &
BUDGET YOUR INCOME.
Ramsey is NO EXPERT !
Anyone who stuffs money in his pocket for a radio AD is his
"FRIEND" ? Prostitution ? Cash is king, HUH ?
Warren Buffet doesn't THINK SO !
Again, he says buying gold is STUPID, YET "HIS FRIENDS" who pay
him to do ADs for them are in the GOLD BUYING BIZ.
ARE HIS "FRIENDS" S T U P I D ???
We can't listen to 710 any more at work
due to your B L I T Z of
OBNOXIOUS RAMSEY ADs !
GET these ADs
OFF OF THE AIR NOW !
I write this on behalf of the millions of FORMER 710am LISTENERS in
Kansas City + myself.
Mr. Kerr, just TRY to listen to 710AM.
Tell me you're not annoyed.
I listened to him a few times on FBN and kept getting the feeling I was listening to a hustler..I know many people have used his principles to get out of debt etc. but I don’t trust him one bit.
I’m in the biz of running money, and I don’t think Mr. Ramsay ought to be handing out investment advice.
God knows, there’s plenty of bad advice out there - he should not add to it.
At one time The Jaguar Dealer was running ads on the DR Show in Jackson MS. Just what every broke person needs a preowned Jag.
There's a saying I heard... I don't remember where it comes from or who said it first, that explains this:
If you want to get rich, sell to the poor. If you want to get poor, sell to the rich.
I'm guessing it has to do with the fact that a poor person is more willing to finance a used Jag (and pay a ton more money over time in the process) than a rich person.
OK, so Dave and his wife had problems with credit cards in the past, that doesn't mean that other people can't use them successfully as one of many financial tools.
The lesson is, to do what ever you can to make it work that fits your own situation. And no two are alike. Those of us who have been successful at it, learned what to do on our own. It is pretty much like getting rid of an addiction, it only works when the addict is determined to do it for themselves, without demanding outside help to do it for them.
I trust him because he is up front about it. There is no magic formula, it’s hard work, it’s a struggle, and getting out of debt will happen if you take the steps needed.
Dave Ramsey is not telling people how to get rich.
He’s telling them how to get out of debt.
That’s the difference. He has been there. He has made the mistakes. Now he is earning a living by using his experience and his method to teach people how to get out of debt.
Yes, most of what he teaches is common sense, but people who are deep in debt often don’t have that common sense, and he gives it in a way that helps many people.
You can pick at anything and find flaws. Or you can look at results. I know of 6 families that have used the Dave Ramsey method and are on their way out of debt.
One has gone from $40,000 in credit card debt to less than $10,000 in credit card debt in 5 years. They see the light at the end of the tunnel, where before they saw nothing but catastrophe. They did it by the “baby step” method. (Their Church hosted the first sessions and paid for their materials).
So where you might see a hustler, I see someone who has helped save families from self-destruction.
That didn’t make any sense
That made no sense whatsoever.
i dunno, I’ve always viewed him as the kid who shouts that the emperor has no clothes, which is what a lot of people living in the rut need.
The CSS is wrong, and the objections quite petty.
Ramsey’s plan turns the tables on what we believe about money. We tend to use debt for “emergencies” and big ticket items. Ramsey says to use savings for those instead. Most people are reluctant to use savings because it is “their” money. They don’t realize it is better to pay yourself than someone else.
That’s why so many people are in debt.
Explain to me how paying 20% to 30% interest for something you think you need now can be a successful financial tool for anyone other than the credit card company.
Let me tell you what Dave Ramsey is selling. He is selling the very rare commodity of Common Sense and peace of mind. If you don't want that, or don't need it, then don't listen to him. Wow, how hard is that?
Every so often this anti Ramsey commentary pops up here. Here is a simple point: if you don’t believe in his advice, don’t listen. His advice seems to follow a few basic themes:
Don’t borrow, don’t get involved in addictive behavior, don’t live for today and not worry about tomorrow. Sounds like sound advice to me.
Do I buy his materials, no. Do I promote his stuff, no. Do I follow all his advice, no, not all. His theme is kind of moralistic, which is not evil. One point I don’t follow is the advice to not charge anything, even if one is paying off the cards each month, assuming they will get some benefit like a cash return. That is what I do.
So, I listen to his show for the entertainment value which is what it is, it is a talk show. I don’t plan on paying to attend an event, I hate going to the circus.
Dave forgets to tell people after 5 years of rice and beans to become debt free, you have another 5 years of rice and beans to gain any wealth. Can’t stand his silly laugh.
Well that would not be an example of "successful" use of the financial tool, would it?
Now, what would you think about using a card with 7.9% interest for a few months as a "bridge loan" between the renovation of a new home and the sale of the old home. This at a time when the cost of getting a HELOC or personal loan would be a higher interest rate or incur loan set-up costs?
Credit cards are a tool, just like a table saw. Can you seriously maim yourself with a table saw? Yep. Should you never, ever use a table saw? Nope, sometimes it's the right tool for the job; just be careful.
I have heard him on the radio a few times and I am always surprised how cocky and rude he is to some of the callers. He reminds of Laura Schlessinger, blunt to the point of rudeness, but with some good advice.
I’ve never listened to him, and I’m not sure I’ve heard of him.
But, if he’s telling people to cut up their credit cards or to pay off any balance each month so there are no finance charges, then he’s right on the money.
Sometimes it’s possible that the guy who has had a couple of failures at starting a business is the guy who really has learned how to do a business start-up.
It’s the old trial and error process. If you’ve got the endurance and the cash, then it actually does work.
The people who are most opposed to Ramsey are Goldbugs, people who can’t see their way out of debt (Stockholm Syndrome) and deadbeats.
I would say that if you are in a financial position to renovate a new home, I would think you should have enough cash on hand in savings to cover yourself for a few months and if you don't then you should not be renovating the new home until you sell your old home--- which in this market could be never.
He says right up front several times during his show that he’s not a financial advisor or lawyer and that anyone seeking that kind of advice should get with a professional. You don’t have to agree with everything he says but he does have some really good common sense advice.
All radio personalities are tryin’ to sell something... Ya, I get a little annoyed when someone like DR rails against buying gold then does an ad for a gold buy-back company. Hmmm, he discourages little folks from buying gold, then encourages them to sell what they have of it... hmm, little guy, no gold: more gold for big guy... kinda like screaming fire in a crowded theatre, then setting up a fire extinguisher stand outside.
But, if hes telling people to cut up their credit cards or to pay off any balance each month so there are no finance charges, then hes right on the money.
Under most circumstances I agree with paying off the credit card every month, but Dave takes it to the extreme. Don't ever have a card. Never, ever, ever! Because you're a weak person and obviously can't handle them.
At least that's the vibe I got from the videos. Which is why I made my initial statement that he reminds me of a newly recovering alcoholic. He had a problem, so you must have a problem too!
“what would you think about using a card with 7.9% interest for a few months as a “bridge loan” between the renovation of a new home and the sale of the old home.”
OK, I’ll bite. Why not use Savings? Why would you pay 8% to someone when you have the money?
Selling gold gets you money. Buying gold can lose you money. That’s the difference.
7/10 on the rant. Could’ve used some expletives and was a little disjointed in the physical layout, but the overall content was good.
I’ve watched his show. He dares to speak the ugly truth about people being financially irresponsible and that only they have the power to get their lives back on track. He talks of self-sacrifice and hard work. He himself has done it. I’ve never heard him do high pressure sales to get people to buy his Financial Peace materials. I’ve heard him give the course to people on the cuff.
Let’s see, you don’t make much money but you have a new car, a flat screen tv, a cell phone, itunes, and eat out every night. Yeah, there’s no need to change your behavior. It must be Bush’s fault you’re broke.
Money that loses value every day, you mean... and hey did you read the whole of my comment... the point being, every talk show personality is selling something... The whole purpose of any talk show is to garner ratings, so as to sell more stuff.
My experience as a counselor of young couples (20-30 somethings) in the Army tells me that the zero credit card idea is not a bad idea. Young couples just don’t have the financial acumen developed, and credit cards are an easy hole to drop into.
Interestingly, the government REQUIRED every soldier to have a credit card from a government account. Instead of paying them travel expenses, ticket expenses, etc., up front, the new government play was for the troops to charge all that to the government card and then get reimbursed after the fact.
They were always told “don’t use this card for anything else.”
You can guess how that worked out.
Then I'm awfully glad I don't get my financial advice from you. Using our VISA for a self-issued 'bridge loan' worked out quite nicely and cost a LOT less than using conventional bank or credit-union products. Yes, I paid a few hundred dollars in interest to the CC company but I kept my cash on hand to smooth out the monthly cash flow. This was also cheaper than renting a place for four months while the new house was renovated which we would have had to do if we sold the old house before the new house was renovated.
Credit cards are tools; they can be used successfully and safely.
I spent weeks researching all of this and you put it out there in one post!
Net time I’m waiting for the post!
Kidding of course.
That's my assessment exactly. He does have an almost cultlike following. I'm not sure where all this anger towards him comes from though. Maybe from people who got out of the cult? His advice isn't terrible. It's just not for everyone.
I don't like how he mocks those of us who use credit card rewards points. If he thinks the Millionaires Next Door aren't sitting around bragging about the free stuff they get from their credit card points, he's just not paying attention.
Mostly cash flow management, but also partly psychological. Just as paying off a low-interest mortgage early isn't always the best financial decision, it can be a good decision for your piece of mind.
It’s not hypocritical to say “Gold is risky so sell it if you have it”. I understand his rationale. The goldbugs don’t like his stand on gold.
Ramsey is selling his books and seminars. Amazingly, they actually help people. In return, we get to hear some really dumb people who are worse off than us.
"piece of mind" == "peace of mind"
“Just as paying off a low-interest mortgage early isn’t always the best financial decision”
yeah but after the house is paid off, you can borrow up to the limit on it and invest the money.
Credit cards? Yes, a tool. I don’t like to carry cash. I’ve had a credit card since I was 18. It’s great for establishing credit, you just have to be careful. My husband and I use it routinely, but we pay off the balance every month and never purchase more than we can afford. Meanwhile, our cash is sitting in a money market account and accumulating (a measely, but still it’s something) interest the whole month. There’s a lot to be said for being an adult and having some self control. If you know you’re not that kind of person, then go with cash.
All of those sites that buy your old gold are rip off artists, IMHO. You’d have to be an idiot to mail your gold to someone you’ve never met and trust them to treat you fairly. I’ve seen several articles about these crooked schemes. Buying gold is like buying stocks. You’d better be educated, and sell before the value drops. I have a brother who is a successful day trader. I couldn’t make a living at it, however.
I guess I need some more coffee too. I'll drive 15 miles to the nearest starbucks in the newly financed F-450 and give them the Visa card for a Vente Latte . . . with the extra shot of espresso.
Makes sense to me.
Millions of listeners in Kansas City? That’s pretty good.
As a friend of mine says “free money is good money”. Unloading junk gold and getting anything is better than nothing. Hopefully, people are sending Krugerrand’s through the mail.
As a friend of mine says “free money is good money”. Unloading junk gold and getting anything is better than nothing. Hopefully, people aren’t sending Krugerrand’s through the mail.
Why not take your money out of money markets and put it in dividend paying stocks like Ford? They pay 6-7%. There are several strong companies that give similar returns. Beats 0.5%. Spread your money out over several.
Well now we're off on a whole other tangent! :D
You could make the argument that it would be better to invest the extra money that you'd use to pre-pay the mortgage today because of the time-value of said money. Give it more years to grow.
But in my particular case, unless I come into a lump-sum of cash (inheritance or similar) I don't see me prepaying on my current mortgage. I managed to refi when rates bounced low a few months ago and now have a 15 year note at 3.75%; not much point to prepaying that since the per-month accrued interest isn't much and the rate is so low. The only real benefit would be peace of mind.
Sell it to someone local, a jeweler you are familiar with. Sending it to someone on TV who is nothing better than a used car dealer is really stupid. I’ve lost large sums of money trusting people like that. Remember, the louder the commercial the lower the IQ of the target audience. And all the commercials I’ve heard are really loud. I have no problem with selling off what you don’t need, especially when prices are high. Just be responsible.
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