Dave Ramsey Isn’t for Everyone

by | Apr 29, 2022

When it comes to learning the ins and outs of financial literacy basics, it’s important to stay curious and open-minded to all the different types of money coach tips available. Our personal finances aren’t all one-size-fits-all. What works for one person may not be the best method for another, at least not in every situation. Trends pop up all the time, but that doesn’t mean they will all work for you. One name you’ll hear a lot in the financial self-help world is Dave Ramsey, a popular financial guru and radio host with (to be honest) sometimes outdated tricks for paying down debt, investing, and other key personal finance steps. Let’s take a look at Dave Ramsey money tips that may or may not be for everyone (I’m not for everyone and I’m okay with that), and how to navigate the world of money advice if you’re new to learning about finances. 

Not all financial tips are created for everyone – what to look for instead 

If you’ve heard of the Debt Snowball Method and/or the Avalanche Method, you’re already familiar with a large part of Dave Ramsey’s money coach methods. And his advice on paying down debt is good. Along with his “7 Baby Steps” for changing your whole financial life, Ramsey’s ideas are definitely solid for a lot of people. There’s no question that paying down debt will raise your net worth. But getting too aggressive with paying down debt can backfire – which is why it could be better for some people to use debt wisely (rather than not at all). Your cash resources may be better utilized if part of your income is also going towards actual investments in addition to paying down debt. The best strategy for paying down debt often depends on how much debt you have and whether you have relatively high or low-interest rates on that debt. But remember, everyone’s situation is different – including yours. 

If a technique or method feels too restrictive, then it may be better to take aspects of it that work for you and build off of that. Remember: there is no one-size-fits-all solution! 

Saving and Investing like a Pro

Another key aspect of Ramsey’s techniques involves how much cash you’re setting aside on a regular basis. While he recommends saving for a fully-funded emergency bucket (6 months of expenses) before even getting to the point of investing a few bucks, other financial experts say Ramsey’s approach of saving so much for a rainy day is thoughtless when you could be putting that money into easy investments like an employer match 401K. When you invest the right way, you’re getting your cash to work smarter, not harder! 

Having savings in a safety bucket is always a good idea, but don’t forget to include your current needs into the equation. And don’t forget to consider that it might be right for you to actively invest NOW so that you can multiply your dollars. You don’t have to abandon your safety net at all; even small investments can help you in the long run. 

Dave Ramsey money tips explain that, once your rainy-day fund is totally full, now it’s time to invest and “to get serious about building wealth.” I say, there’s no time like the present when it comes to getting serious about building your wealth and raising your net worth! Getting those dollars working for you right here, right now, is a great way to start building your net worth and elevate your financial future while time is still on your side. 

Deciding what’s best for you takes strategy and support 

Any financial plan that feels rigid and dogmatic isn’t going to be a good fit. Just like diets, the restrictive budgets don’t work long term. And I’m here to help you see long term financial success. Your financial life has everything to do with your money personality, your money mindset, and your unique money situation! Elevating your financial life comes down to learning the financial literacy basics, learning your money mindset, and learning what financial action is the right action for you. The more you learn and try, the more comfortable and confident you’ll be when it comes to finding your way towards making truly savvy money moves. You don’t have to figure it all out alone, either. If you’re looking for a supportive group of women to help you take confident steps in your financial journey, join mine. If you need help getting your $hit together in a way that works for YOU, sign up for my next GIT Elevated Money Course today!

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