Dave Ramsey’s plan is for the simple

January 8, 2007 at 4:15 pm 1 comment

In the world of personal finance, there’s two schools of thought when it comes to Dave Ramsey–you either love him or you hate him. Wherever you stand with the man, it’s hard to argue the fact that what he teaches works. This post is aimed at those individuals who believe they’re more advanced in their financial journey to even consider or apply the principles Dave teaches. Why? He’s too simple.

According to The Simple Dollar, the Total Money Makeover book is “…quite enthusiastic, but a bit simplistic.” While I agree that it is simple, I don’t believe Dave’s philosophy should be dismissed by the more financial literate and here’s why.

Financial success has nothing to do with sophistication, but more to do with discipline and good money habits. Dave Ramsey’s teachings, at the core, deal with changing behavior. The first of which is learning how to live on less than what you make, which sounds simple and easy enough, but 78% of Americans don’t follow this basic tenet. Especially in a society where debt is so heavily marketed. Marketed? Yeah, debt is a product, a quite successful one at that.

Dave Ramsey also teaches the importance of saving. Learning how to save and where to save are simple concepts that most folks just don’t do. Most people would rather have a $350 car payment than worry about a Roth IRA or ESA.

It’s important to remember that money, or the handling of money, is psychological more than it is logical. After all, it’s called personal finance for a reason. It’s about learning and applying basic financial principles. Then and only then will you succeed financially.

Sidenote: I believe Trent hit the nail on the head in this post. Dave Ramsey is definitely passionate about what he teaches.


Entry filed under: Blogs, Soap Box.

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1 Comment Add your own

  • 1. Mona@TimeToBudget  |  January 8, 2007 at 8:27 pm

    Completly agree. I think Dave Ramsey simplistic approach was done on purpose. He wants everyone to understand gaining control of your money is simple. Why get into complicated money jargon when you can just state it like it is. I think many financial couselors want to impress you with their knowledge more than making it easy for you to understand. Turns out some couselors may not even know as much as they say.


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