5 Reasons Dave Ramsey is Wrong On Growing Wealth

Dave Ramsey — The Debt Slasher?

Dave Ramsey is a decent resource for getting out of debt, but he is a lousy “financial advisor” once you are out of debt and have cash to invest.

I have read his most popular book, “The Total Money Makeover” and do listen to his podcast from time to time, which is how is how I have become familiar enough with his methods to be able to critique them. This isn’t a blind and uninformed perspective. He is not ALL bad, either. My point here is to point out his flaws, so blind obedience is not followed by those who are just getting started.

Point 1: When tackling debt obligations, he picks the smallest one first, as opposed to the debt with the highest interest. Huge mistake.

To outline the point, say you have 2 loans. You don’t know which one to pay down first.

Point 2: Cutting Up Credit Cards = No Credit Score

If you follow this advice, you won’t be able to get a low rate on a mortgage.

Point 3: He pushes Mutual Funds, not ETF’s on his listeners. He lacks risk.

Mutual Funds are extremely popular with 40+ year olds.

Point 4: His Deeply Religious Angle

Now I am not one to bash on someone for their beliefs.

What if a non-Christian or an Atheist wants to budget and get ahold of their financial future. Should they listen to the Bible for financial advice? This is an attribute of his that is impossible to break from the financial advice he provides.

I personally don’t think your personal finance has a strong tie to stories in the Bible, so it’s not crazy to see that it’s off-putting to a large group of people.

Point 5: Hatred of Alternative Investment Forms and Digital Currencies

This is likely my most controversial take on Ramsey.


Ramsey is just a bit too old school with his investment allocation, which is why I don’t listen to him for any investment or wealth building advice.

A Silicon Valley based software engineer’s perspective on the world.

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