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Dave Ramsey

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Not to be confused with Dave Ramsay or Dave Rumsey (disambiguation).

For other people with similar names, see David Ramsey (disambiguation).

Dave Ramsey
Ramsey in 2023
Ramsey in 2023
Born (1960-09-03) September 3, 1960 (age 64)[1]
Antioch, Tennessee, U.S.
OccupationPersonal finance consultant, radio show host, author
Alma materUniversity of Tennessee (BS)
SubjectPersonal finance
Notable worksThe Total Money Makeover
SpouseSharon Ramsey
Children3, including Rachel Cruze
Website
ramseysolutions.com

David Lawrence Ramsey III (born September 3, 1960) is an American radio personality who offers financial advice. He is the owner and CEO of Ramsey Solutions and co-hosts the nationally syndicated radio program The Ramsey Show. Ramsey has written several books, including The New York Times bestseller The Total Money Makeover, and hosted a television show on Fox Business from 2007 to 2010.

Early life

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Ramsey was born in Antioch, Tennessee, to successful real estate agents and developers.[2] He attended Antioch High School where he played ice hockey.[citation needed] At age 18, Ramsey took the real estate exam[2] and began selling property, working through college at the University of Tennessee, Knoxville,[2] where he earned a Bachelor of Science degree in finance and real estate.[3]

Career

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By 1986, Ramsey had amassed a portfolio worth over $4 million.[4][5] However, when the Competitive Equality Banking Act of 1987 took effect, several banks changed ownership and called his $1.2 million in loans and lines of credit because he was over-leveraged.[2] Ramsey was unable to pay and filed for bankruptcy in 1988.[6]

Ramsey experienced several years of financial recovery and began offering financial advice to couples at his local church.[5] In 1988, he founded the The Lampo Group, a financial counseling service (now known publicly as Ramsey Solutions),[5] and in 1992 he wrote and self-published his first book, Financial Peace.[4][2]

Ramsey began as one of three alternating hosts of The Money Game on radio station WWTN/Nashville in 1992. The show eventually became The Dave Ramsey Show, Ramsey's daily three-hour call-in financial advice talk show.[2][7]

Financial Peace University, Ramsey's nine-lesson, video-based personal finance course, debuted in 1994.[8] The Gannett newspaper group ran his financial column, though dropped it when the newspaper realized that Ramsey had changed the names on the letters to which he was responding. He offered to pay them their money back.[2] The Dave Ramsey Show aired on the Fox Business Network from 2007 to 2010.

In 2014, The Daily Beast reported that Ramsey had lashed out against former employees he claimed were discussing working conditions at the company on Facebook and Twitter. At company staff meetings, Ramsey recounted conversations from a private Facebook group of former employees that he had infiltrated, offered cash rewards for the identities of some members. Once they realized Ramsey had joined the private group, some anonymous Twitter accounts who alleged to be those workers and tweeted that he "pulled a gun out of a bag to try to teach a lesson about gossip".[9] The incident prompted an increased backlash, a meeting Ramsey set up to confront critics, and the eventual deletion of several of the critical Twitter accounts.[10]

On his radio show[11] and in staff meetings in 2020, Ramsey railed against face coverings and other COVID-19 pandemic precautions, calling them "a sign of fear".[12] On his March 2, 2020, show, he mocked concerned ticket holders for his upcoming live events, calling anyone who wanted a refund a "wuss" and insisting that he would attend the "Live Like No One Else" cruise "by my freaking self" if necessary.[13]

In February 2021, Ramsey appeared on Fox News, where he said, "I don't believe in stimulus checks, because if $600 or $1,400 changes your life you were pretty much screwed already. You got other issues going on."[14][15]

Ramsey has written five books for adults, three of which were New York Times bestsellers, and six children's books.[2]

Teachings

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Ramsey advises listeners to reduce debt using the debt snowball method, where debtors pay off their lowest balances first.[16][17] Ramsey opposes the use of credit cards.[18] At live shows, he sometimes takes out his wallet to show audiences the "only four pieces of plastic" he carries: A business debit card, a personal debit card, a driver's license, and a concealed-carry permit.[2][17] Ramsey encourages the use of cash and advises families to utilize an envelope system, putting a cash allocation for each month's food, entertainment, and other expenses in separate envelopes and then spending only what is in the envelope.[19] Ramsey encourages people not to take on student loan debt[17] and calls the idea that student loans are required for college "a myth".[20]

Efficacy

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Critics of Ramsey's core teachings point out that they are often a "one-size-fits-all" approach that disregards income disparities, investment horizon, and ignores financial emergencies.[21][19][17] The debt snowball method is frequently debated, and studies have returned results that both support and oppose its efficacy.[22][23] Ramsey's investing advice has also drawn criticism over its reliance on stock investment, as opposed to bonds, using mutual funds with load fees, and its frequent claim of 12% annual returns on investments.[24][25][26]

Personal life

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Ramsey married his wife Sharon in 1982. The Ramseys have three children: Denise Whittemore, Rachel Cruze, and Daniel Ramsey. All three work for Ramsey Solutions.[27]

Ramsey was inducted into the National Radio Hall of Fame in 2015.[7]

Ramsey had an estimated net worth of $55 million as of 2018.[28] He sold his custom-built home in the Nashville, Tennessee, area for $10.2 million in 2021 after living there for over a decade. A spokesperson said he was having another home built in the area.[29]

Ramsey is an evangelical Christian[17] who describes himself as conservative, both fiscally and culturally.[5][8] He has blamed politics for what he considers Americans' economic dependence, and has said presidents should do "as little as possible" about the economy.[8] Ramsey has publicly stated he would vote for Republican Donald Trump in the 2024 presidential election, but also plainly said that people should vote for which candidate best aligns with their political values.[30]

References

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  1. ^ Dave Ramsey Show Newstalk 550 KTSA. San Antonio, Texas. September 3, 2012. Radio.
  2. ^ a b c d e f g h i Drury, Susan (May 31, 2007). "The Gospel According to Dave". Nashville Scene. Archived from the original on January 6, 2021. Retrieved January 6, 2021.
  3. ^ "Check out the latest from Dave Ramsey!". daveramsey.com. Retrieved March 30, 2020.
  4. ^ a b Ramsey, Dave; Sharon Ramsey (2003). Financial Peace Revisited. Harmondsworth, Middlesex, England: Viking Penguin. p. 325. 0-670-03208-5.
  5. ^ a b c d Ross Jr., Bobby (March 31, 2003). "Christian financial guru crusades against overspending". Google News. Ocala Star-Banner. p. 6C. Archived from the original on January 5, 2021. Retrieved January 5, 2021.
  6. ^ Ramsey, Dave. "Home Page". www.ramseysolutions.com. Retrieved February 21, 2024.
  7. ^ a b "Dave Ramsey". Radio Hall of Fame. Archived from the original on January 5, 2021. Retrieved January 5, 2021.
  8. ^ a b c Alberta, Tim. "The Financial Whisperer to Trump's America". Politico. Archived from the original on March 11, 2018. Retrieved January 7, 2021.
  9. ^ THE LAMPO GROUP, LLC, D/B/A RAMSEY SOLUTIONS v. KEVIN HELMUT PAFFRATH, PAFFRATH ORGANIZATION, MEETNDONE CORPORATION, 18 (M.D. Tenn. 29 Oct 2019), Text.
  10. ^ Turner, Matthew Paul (May 29, 2014). "Spies, Cash, and Fear: Inside Christian Money Guru Dave Ramsey's Social Media Witch Hunt". The Daily Beast. Archived from the original on September 13, 2020. Retrieved January 7, 2021.
  11. ^ Ramsey, Dave (November 19, 2020). "This Has Gotten Out of Hand! – Dave Ramsey Rant". The Dave Ramsey Show – YouTube. Archived from the original on January 9, 2021. Retrieved January 9, 2021.
  12. ^ Smietana, Bob (December 11, 2020). "Dave Ramsey, Christian personal finance guru, defies COVID-19 to keep staff at desks". Religion News Service. Archived from the original on December 11, 2020. Retrieved January 9, 2021.
  13. ^ Smietana, Bob (January 15, 2021). "Is Dave Ramsey's empire the 'best place to work in America'? Say no and you're out". Religion News Service. Archived from the original on January 30, 2021. Retrieved May 25, 2021.
  14. ^ Lonas, Lexi (February 11, 2021). "Dave Ramsey on stimulus checks: 'If $600 or $1,400 changes your life, you were pretty much screwed already'". The Hill. Archived from the original on February 13, 2021. Retrieved February 23, 2021.
  15. ^ "If a $600 Stimulus Check Changes Your Life, Then You're Already Screwed!". The Ramsey Show on Youtube. February 11, 2021. Retrieved February 24, 2021.
  16. ^ White, Martha (August 16, 2012). "The Verdict Is In: Tackle Smaller Debts First". Time. Archived from the original on February 4, 2013. Retrieved January 6, 2021.
  17. ^ a b c d e Bahler, Kristen (April 16, 2019). "Broke Millennials Are Flocking to Financial Guru Dave Ramsey. Is His Advice Any Good?". Money. Archived from the original on January 6, 2021. Retrieved January 6, 2021.
  18. ^ Grisby, Lorna (February 17, 1997). "Digging Out of Debt". People. Archived from the original on January 16, 2021. Retrieved January 16, 2021.
  19. ^ a b Olen, Helaine (October 28, 2013). "The Prophet". Pacific Standard. Archived from the original on January 16, 2021. Retrieved January 16, 2021.
  20. ^ Ramsey, Dave. "Parents shouldn't co-sign student loans". Knoxville News Sentinel.
  21. ^ Chang, David (October 29, 2022). "3 Reasons Not to Listen to Dave Ramsey". www.fool.com. Retrieved August 11, 2023.
  22. ^ Berger, Rob (July 20, 2017). "Debt Snowball Versus Debt Avalanche: What The Academic Research Shows". Forbes.com. Archived from the original on January 16, 2021. Retrieved January 16, 2021.
  23. ^ "Paying Down Credit Card Debt | Questrom School of Business". www.bu.edu.
  24. ^ Carrns, Ann (May 13, 2011). "Dave Ramsey's 12% Solution". The New York Times. Archived from the original on January 4, 2013. Retrieved January 6, 2021.
  25. ^ Stoffel, Brian (June 3, 2013). "Dangerous Retirement Planning Advice From Financial Guru Dave Ramsey". The Motley Fool. Archived from the original on January 6, 2021. Retrieved January 6, 2021.
  26. ^ Salmon, Felix (September 26, 2013). "Save like Dave Ramsey ... Just Don't Invest Like Him?". Money. Archived from the original on February 12, 2021. Retrieved February 2, 2021.
  27. ^ "Leadership". Ramsey Solutions. Retrieved January 20, 2025.
  28. ^ Alberta, Tim (May 8, 2020). "The Financial Whisperer to Trump's America". POLITICO Magazine. Retrieved February 4, 2023.
  29. ^ "Dave Ramsey Takes a Deep Discount, Sells Franklin, TN, Home for $10.2M". Real Estate News & Insights | realtor.com®. November 24, 2021. Retrieved December 17, 2021.
  30. ^ Lazarus, Lily Mae (October 19, 2024). "Finance Whiz Dave Ramsey Reveals Why He's Voting for Trump". The Daily Beast.

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