Yes, Dave Ramsey is a financial guru and he has change so many lives, but I have some different thoughts and beliefs when it comes to personal finance. Sitting here writing this, I’m thinking, who the hell am I to put something out into the world that shares where disagree with Dave Ramsey, he’s a freaking personal finance powerhouse and I am a financial coach with just over 2 years in business! But I know the world needs this, you need this. Maybe you have been reading Dave’s books and listening to his podcasts and feeling like shit because Dave’s way isn’t working for you. So I’m pulling up my big girl pants (that are stretchy and black, and usually are) to share my beliefs with you. Let’s dive in! 

#1 – Gazelle Intensity is great but, it can suck the life out of you. For any non-Dave followers, he is adamant that when you have debt, you don’t see the inside of a restaurant unless it is to work there. This is his term of go all in, all the time, no exceptions-EVER! Live a life with no extras until all your non-mortgage debt is paid off!

My thoughts: Build a budget that works for you and balances today and tomorrow. No, I am never going to say, sure, go put that cruise on a credit card and have a great time!! But if you love to travel and you make enough money to put extra towards your debts every month and save for a vacation (that is paid for before you go), I say, have a great time! Yes, it will take you longer to pay off your debts, but you will still be living your life and paying off your debts. The decision is yours, pay off debt as fast as possible with no extras, OR find a balance that works for you. 

#2 – Never ever, ever, ever, ever (you get the point, right?), use credit cards.

My thoughts: Use credit cards responsibly, use credit cards like debit cards and don’t put anything on them (that isn’t an emergency) that you don’t have the $ to pay for right away. When we use our credit cards, we pay them all off at least bi-weekly, but in many cases I make a payment as soon as we use a card for something. YES, without a system using your credit card increases your spending, but with a system, you can get cash back or points AND stay on budget. We also have several bills that go onto a credit card every month, for these payments, I have an automated payment set up, so the payment happens on the same day the expenses is added. If you suck at managing credit cards, don’t have them, if you can manage them responsibly and earn cc rewards, charge away (responsibly of course)!

#3 – Save $1,000 in your emergency fund and don’t add any more until all of your debt is paid off. Yes, he calls this your starter emergency fund, and part of the reason for such a small amount is that it is more motivating to get your debt paid off. This is not a comfortable amount to have in your savings. It also forces you to get very creative when a more expensive emergency comes up. 

My thoughts: $1,000 is not enough. Yes, I know this is part of the point Dave is making but you should have a starter emergency fund goal based on your personal situation. If you’ve followed Dave’s plan and cut up all of your credit cards and have $1,000 saved, and you lose your job (or you have a major car repair or you have to take unpaid time off work because your kid is sick or COVID—I could keep going but I won’t), especially in a single income household, you’re screwed! No, I don’t recommend stacking up cash forever and not paying extra on your debt, I do recommend having an amount there that makes sense based on your situation AND not cutting up your credit cards. No, I don’t want you to add to your debt, but I also don’t want you to add even more stress to your life in a stressful situation.

#4 – This one may get me a lot of flak, but I disagree with Dave’s tough love approach. I personally think it teeters on the line being an asshole and when someone already feels like shit because of their financial situation. His response to some callers is way too much!

My thoughts: Educate and provide accountability and a listening ear. No, I am not going to coddle you. I am not a softy at all! I am going to be open and honest with you, but I will do it in a way that the situation calls for. Some situations call for me to be tough and even brutally honest, but other situations call for me to be kind and supportive. I think one of my best qualities as a coach is to gauge how you are feeling, and to ask questions to get you to see other options and to get recentred on your goals. If I push you strongly in a direction that is not a fit for you and you aren’t on board with what I’m recommending, you aren’t going to make any changes. If I can ask you questions, to get you to think about two different options and decide for yourself which path is right, you are way more likely to achieve the results you are looking for.

I know this phrase is overused like crazy, but it is so true! Personal finance is PERSONAL. What you think is important matters. You will prioritize something that someone else may not spend a penny on, because it is not a priority for them. Your plan needs to match your values. If it doesn’t and you are having issues staying on track, you need to adjust your plan. If it is important to you, and it costs money, it should have a place in your budget!

If you haven’t heard of Dave Ramsey and are looking to pay off debt and change your financial future, I do recommend that you go check out his podcast. While I don’t agree with everything he believes and teaches he is a wealth of information and maybe you are ready to go gazelle intense!

If you have been listening to Dave and have been feeling off about what he shares, but you know you need more support, let’s connect. Book a free call with me or shoot me an email at: sherry@moneymindsetfc.com

I look forward to hearing from you.

 -Sherry