WHY I DON'T FOLLOW DAVE RAMSEY PART 1 | financial advice I disagree with Dave Ramsey about

Hi Friends!

Today we are going over PART 1 of why I disagree with Dave Ramsey. We are talking about Dave Ramsey's financial advice that I don't follow and why I think that there are several aspects of Dave Ramsey's baby steps that are wrong and need push back on. PART 2 is coming soon that covers the scope of all of the other things I disagree with Dave Ramsey about.
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Views expressed in this video are my opinion and should not be interpreted as professional financial advice. I am not a certified financial advisor.

Helping Millennials and Gen Zers survive capitalism by feeling confident with saving, paying off debt, investing and budgeting in a way that works for YOU.

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My Filming Gear:

As seen in video:

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Chapters:
0:00 Intro
1:08 Disclaimer
1:53 credit scores
6:18 gazelle intensity
9:45 emergency funds
12:42 investing
16:04 outro

[DearDebt]

Dave is the reason I started my journey, so I do still give him credit for that. And I think the basics of his programs are great and it’s a wonderful starting point. However, through my own journey I’ve strayed farther and farther away from him. He’s....problematic for sure.

[lkjg]

For someone who is drowning in student loan / consumer debt, Ramsey's "Baby Steps" can put them on the right track. That said, I have witnessed Ramsey folks give absolutely horrible financial advice to callers which would cost them tens of thousands, if not hundreds of thousands of dollars. Dave also does not seem to consider the tax consequences of his advice. Bottom line, he selling the Ramsey brand of products, including seminars, budgeting tools, books, and other such merchandise. He has helped a lot of people, but also hurt more than a few (financially) with his programs and advice. Caveat

[Christyy]

I actually love Dave Ramsey and he has motivated me the most on my debt pay off journey. HOWEVER, there’s no way I’m cancelling my credit cards and ruining my credit just because he says so. As you mentioned in your video, we need good credit for most things in life! Imagine how high your credit score would be if you did go “gazelle intense” and paid off your cards 😍 great video!

[loveandjoy]

Yup. I use my credit card to pay my regular bills, then pay off my credit card off every month and use the cash back to make snowflake payments on my student loan. My student loan was huge $62, 000. I will be out of it this year. But it took me 8 years ( I have kids and a family). So I kept continuing contributions to my 401(k) and am still on track to retire. If I followed Dave’s plan I would have missed out on all that growth.

[Eliminator]

You're phenomenal. I told my friend the same thing about Dave's credit card advice originating many years ago and that he's refused to ever adapt his advice to today's conditions.

[ttudidfitrhondavigil]

Do your plan.
Do what works for you.
We are debt free and mortgage free.
BS7. So thankful for Dave Ramsey's YouTube videos.

[beatttun]

The $1, 000 emergency fund is just to get some momentum and to feel like you’re making progress. Like you did a weight loss goal, it’s a good feeling to hit your goals early.

[sashanagler]

I really appreciate the level of awareness on the "gray" area and exposing the layers involved in other's experience of Credit Scores and Finance in general.

[RoamYourRoots]

Thank you for reiterating that $1, 000 isn’t enough. Took my cat to the emergency vet a few months ago and racked up a $785 bill - for one vet visit. Dave is out of touch. I reworked his baby steps and am paying off debt while simultaneously saving 6 months of expenses AND funding my IRA. And *gasp* going out to brunch on the weekends. Shame on me!

[girlscandrum]

I am really enjoying your videos! I started looking into Dave Ramsey a couple of years ago and quickly realized how cult-like it is. I constantly see people on the FB pages talk about how they can no longer purchase a home or get a job or other things because they wrecked their credit scores following his plan, and then hundreds of people still jump on and defend his advice. I feel like his advice is solely for people with zero self control and that's why they are so strict. I have credit cards that I use for points, do not use them flippantly, and it works in my favor, but none of his followers can grasp that concept.

[angeljuarez]

Love the video 💕💕 With your videos and advice, I’m on my way to being a full month ahead. 💚👏🏻🍾

[racheildrake]

Thank you - I’ve followed Dave but never completed the steps.

Life has gotten in the way for way too long and now, I’m raising my grandson and want to change things for him.

Love watching your YNAB training videos (still confused so I’m still watching them lol) .

I’m learning a lot of new info - so thanks!

[millennialmakingit]

Just like with many other financial experts, I take what I need and don't listen to the rest. I'm not against DR at all actually, it's how we started, but there are certainly some problematic things with his teachings (both financial and personal), but I definitely still listen to his podcast every once in a while and give him the credit for getting us started. That being said, I love the things you teach as well! Thanks for sharing

[Khsfldd]

Lexa, having only watched your videos for like a week, I can't begin to express how much good you have done for my mental health. To have someone who gives $$ advice from a place of true compassion and true empathy is invaluable. For the second of what'll be many times, thank you so much :)

[timb]

I'm not a huge dave ramsey fan boy but as a financial planner living in the south you kinda have to be extremely knowledgeable on his plan. So many times ive had clients come in referencing Dave's plan. I promise you there is much you got wrong in this video especially with the first two baby steps.

[inspectorgadget]

Leveraging in itself isn’t necessary a bad thing. If you can borrow at a low or no interest rate and actually use it is amazing. Now of course you must pay it off before it expires but leveraging is not necessarily bad unless you are over leveraged

[kathryntubridypakenham]

I've actually heard him say that people who live with their parents are lazy, even the ones who do it to pay their debts off more quickly

[schultz]

Thanks for bringing up the 401k issue. I definitely disagree with Mr. Ramsey on this issue, unless someone has extraordinarily high interest debt, in excess of 20%, for example. Why give up income? If one feels really secure in their job, borrowing against the 401k is a plausible alternative. One pays themselves the interest, the fees are generally negligible, and taxes are avoided, as it is a loan and not a distribution. However, there are downsides, if one loses the job, the money must be paid back almost immediately.

[bbloni]

Some of his advices are sound. However, I stopped listening to him because I find his anger, rudeness and ego toxic. I am sure he does not care whether we listen to his show or not. He seemed to use God's name for everything he does. I don't think God would be happy with him calling people stupid.

[hunterhamilton]

Honestly, I learn from Dave Ramsey if I have a friend or family member that can pull strings for me and not my friends, I can become very wealthy.