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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 81599  
Subject: Re: Bad Investment Advice from Dave Ramsey Date: 9/29/2013 12:43 PM
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Contrary to the persona he tries to portray, Dave Ramsey seems to have focused his business on enriching himself, just like many other people who provide personal finance advice.

While Dave Ramsey has inspired many people to get out of debt, his method of focusing their snowball on debts from smallest to largest, rather then from highest interest rate to lowest interest, usually turns out to be more expensive. He tries to justify this by saying Paying off debt is not always about math. It’s about motivation. Personal finance is 20% head knowledge and 80% behavior. When you start knocking off the easier debts, you will see results and you will stay motivated to dump your debt. but he provides no studies or data to back up his assertions. However, Dave Ramsey is enriched by selling his books, his TV show and his seminars on how to get out of debt.

His mortgage advice - to refinance using his 'endorsed provider' rather than shopping around, may also be more expensive, but it's hard to know this for sure, since the endorsed provider does not appear to post rates on the web for comparison. Just like his investing endorsed providers, I'm sure that the endorsed provider pays lead generation fees to Dave Ramsey, though.

And he has lots of other providers he endorses - for insurance, security, etc. Again, those lead generation fees will enrich Dave Ramsey.

He's apparently very good enriching himself - he's supposedly worth >$50 million, and built a new house that, with the land, is valued at nearly $5 million (although he says he paid cash).

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