What is the Dave Ramsey Dilemma?
There are alot of people that try and compare Dave Ramsey with other financial educators in the world of finance. Of course this will happen, but the main one seems to be Dave Ramsey and Robert Kiyosaki. The problem with this is that both of these guys are great, but they have two different kinds of audiences.
So it’s really like trying to compare apples to oranges. Are both of them in the business of financial education? Yes. Are both of them serving an audience that want to get out of the rat race? Yes. Are both of them running a business teaching people how to handle money? Yes.
So what is the difference?
I believe that the real main core difference is that Dave is more of the foundation for financial education. He serves an audience that is more directed towards people that have ridiculous piles of debt. He teaches the basic fundamentals of how to handle money.The educational system in the United States doesn’t teach anyone, anything about money.
Dave really fills the gap that is left after the public and private school systems gets a hold of people. That gap is the lacking of education being taught to the youth about how to handle money. Teaching people that debt is great and that you can get whatever you want, just charge it! Not explaining, that without a sufficient inflow of funds to cover the outflow, the interest will bury them!
By filling this gap, Dave really brings those that are deep in that trap, a clear view of how to get out of that trap. I believe this is such a huge benefit to people, and it doesn’t merit people belittling him because of his systems. (That really do work for people.)
So is this a blanket endorsement?
No, no it is not. There are still benefits outside of the Ramsey Solutions Systems that have rewards. He built an empire on cutting up credit cards!
I know, I know, who am I to have an opinion about his systems? We actually practice the baby steps, but we still use credit cards and other investments outside of the baby steps. For some people, they can’t handle credit cards. After climbing out of a hole that they used the cards to dig into. They probably shouldn’t use them. But for others, like us, and people who are in business and spend money responsibly. They bring a huge benefit with the rewards. (We only use cashback rewards, no miles!)
Dave has his own view of the fact that people spend more when they use a card, so you aren’t really winning. Though that may be true, when you aren’t scrapping together nickles, and you already have the spendable income in the budget. The cashback rewards are a sweet yearly benefit!
Why we still support Dave Ramsey.
So even if you disagree with Dave on a lot of things, that doesn’t mean he is wrong. He did build a multi-million dollar company, actually helping people for the better! You will also be hard pressed to find any good financial planners that haven’t read his books either.
If you don’t know who Dave is, I would recommend checking him out, either by his website www.daveramsey.com. Or by his Youtube Channel The Dave Ramsey Show. You can also find all of his books here on Amazon: Dave Ramsey Books. Keep up the good work Dave, and thank you for all you have done!