The Simple Dollar Morning Roundup: Dave Ramsey Edition

This week, my morning roundups are going to focus exclusively on specific personal finance writers. I’ve searched around the blogosphere researching these writers and the takes that others have on them and found a number of good ones.

Today I’m taking a peek at Dave Ramsey, author of several personal finance books and the host of a popular radio show. His advice is very direct, simple, and easy to follow and it’s won him a ton of followers.

Dave Ramsey Resources And Links Want a plethora of stuff to read about Ramsey? This is an astounding collection of links about the man and his personal finance ideas. (@ getting finances done)

Dave Ramsey Is Bad At Math and Dave Ramsey Is Good At Psychology I actually agree with both; Dave’s plan works, but it’s not mathematically optimal. Why does it work? It has a lot of psychology hooks embedded in it. (@ five cent nickel)

Dave Ramsey’s Baby Steps A list of and discussion of Dave’s “baby steps” and how you can apply them to your own financial life. (@ it’s your money)

Dave Ramsey Retro: Extra Income… Should We Invest It? This is a perfect sample of the type of advice Dave dishes out. I wasn’t even actually aware until recently that he has an online column with extensive archives.

The Simple Dollar Retro: Review: The Total Money Makeover This book really surprised me – it laid out a very clear financial plan for getting out of debt and getting on the right path without too much filler and hubris. If you’re looking for a good basic personal finance book, this is an excellent one to start with.

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  1. Laura says:

    Thanks for the resources link. While I’m not a rabid fan of David ramsey, his basic principles is helpful. I’m still working on building my emergency fund and reading some of his article motivates me to continue.

  2. Bryan says:

    I think it’s important to understand Ramsey’s audience, many of whom got into debt by not understanding fully the ramifications of incurring that debt. They got into debt easily (e.g. without thinking) and Ramsey provides a way to get out easily (e.g. without thinking). The amount of money saved by choosing lowest balance vs. interest rates vs. ratios is irrelevant to them: it’s the ease of the program that is important.

    Ultimately, it’s important to recognize that ANY accelerated debt-reduction is better than paying minimum payments for 80 years.

  3. Jamin says:

    For me personally, “Total Money Makeover” completely changed the way I looked at personal finance. Even though a lot of the book is common sense he puts it together so well and is an excellent motivator. After read it I got right to work getting my emergency fund together, working out a budget, and starting that snowball effect. I wrote about how I use his advice and a simple spreadsheet to manage my money now in How to Manage Your Finances with a Spreadsheet.

    Your readers might find it useful.

    Thanks for the great post!

  4. John says:

    I like that Dave Ramsey has helped so many people, and I like that he doesn’t usually spout misinformation like the majority of self-appointed financial “gurus” (although I agree that his math is a little off at time). I don’t like that he is so rabidly anti-debt. Debt is a tool that can be used wisely or abused, and it’s not somehow immoral to use debt to accomplish something important.

  5. Joseph Sangl says:

    Dave Ramsey is awesome!!! I highly recommend that folks read his books. If you were to only want to read one of his books, I would recommend Financial Peace, Revisited.

    One thing I really like about Dave is the fact that he does not waver on subjects. He has laser-like focus. I love it!

  6. boardmadd says:

    Some may find dave Ramsey’s approach is very simplistic, but for many, simple is all they’ll ever need. Having done many of the steps he recommends (including paying off the house early) I am finding that the ability to invest long term and avoid debt is *very* easy now.

    Ramsey makes it clear that he does not look to debt for anything, and does not suggest or recommend debt unless the options are overwhelming (he has encourages surfing credit card rates to get a better insterest rate or taking out a consolidation loan if it makes sense to do so, but his ultimate message is to kill off debt and sterr clear of it ever more).

    He bends his stance on buying a primary residnece with a fixed rate 15 year mortgage that equals no more than 25% of your take home pay.

    I agree that Ramsey’s message is consistent, and while he certainly pimps his live events and his products (and come on, what radio personality *doesn’t* pimp merch?!), for the most part, his advice is the same as when he first wrote Financial Peace, and has wavered very litle over the years. For many, that consistency is both refreshing and comforting.

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