So as far as I understand it, Dave Ramsay is very much anti-debt. A lot of his followers are in tremendous credit card or student loan debt, so that advice to his audience makes sense.
However he doesn't talk about debt used for investments, or anything else really outside of home ownership or 401k investing which only can get you so far.
He doesn't talk about individual stock investing, how to grow a business, or increase your income to the point you can invest enough to be financially independent except for "work 3 jobs delivering pizzas."
So for those of you who have gotten debt free due to Dave's advice, I'm not knocking that. He's helped a lot of people, but I think his show leaves a lot of stones unturned.
He also talks about the mythical 12% rate of return on his mutual funds, which he claims are easy to find, but doesn't actually list any of them to prove his claims of that.
So how does the average person actually legitimately build wealth outside of a 401(k)? The 401k can only get you so far, and mutual funds can only get you so far too. Actual rich people got wealthy through real estate (good debt) , business ventures and made money taking risks not playing it safe, and getting out of consumer debt (bad debt)
I feel like Dave's attitude on credit and credit cards work for him because he's a multi millionaire and his level of wealth blinds him from reality of what the average person goes through (see his stance on inflation not being a big deal), but the average person needs credit to rent a house or apartment, buy a home, or take on any investment debt for a company. I don't think he does a good job of "good debt" vs. bad debt.
What are your thoughts on Ramsay solutions? Have you gone through his program, what was it like for you after finishing? And did you "outgrow" his advice? Basically for the average person what do you do "after Ramsay?" I think just mutual funds and 401k can only really get you so far...
I'm not knocking his program by any means, but I think it's way too simplified and once you get out of consumer debt you've kind of outgrown his advice
Submitted June 11, 2022 at 04:20AM by bachelormindset https://ift.tt/BDFzLuQ
