Most of you have probably heard about Dave Ramsey from somewhere (especially if you’re on a blog like this). He has made a pretty big name for himself by digging himself out of bankruptcy and into millionaire status. Currently, he runs a fairly large company that helps others get out of debt and build wealth. Being that I want to do the same, I really enjoy learning from him.
His main claim to fame is the Financial Peace University (FPU) course. It’s a nine week course that teaches people 7 simple (not easy) tasks to get out of debt and build wealth. This course is taught by hundreds of people around the country voluntarily. My mom is currently one of those people and I have decided to help her out. Our first class was last week, so we are just getting started.
This class is widely known as one of the better personal finance classes out there. Dave is a great teacher because he has been through just about everything and is able to teach others the lessons he has learned while adding in some humor. Here are the 7 steps that he teaches (along with an article explaining each one).
- Put $1,000 in an Emergency Fund
- Pay Off All Debt Besides Your Mortgage
- Build a Fully-Funded Emergency Fund
- Invest 15% of Your Income into Retirement
- Start Saving for Your Child’s Education
- Pay Off Your Mortgage
- Build Wealth and Give
He is 100% anti-debt. It doesn’t matter if it’s “good” or “bad” debt, he considers it all “bad”. He believes that in order to really build wealth you need to be free from all debt and then begin investing for the future. His steps explain all of that in a lot more detail in his class.
Even though I look up to him in a lot of ways, I don’t agree with everything that he teaches. He is a strong proponent of paying off debt using the snowball method vs. the avalanche method and his investing strategies are widely criticized as well. That being said, if you follow his steps you will end up in very good shape. There may be a few areas where straying off of his methods would be beneficial, but not too many.
Dave is a great guy who has helped millions of people straighten out their finances. If you haven’t heard of him or taken the class, I highly recommend it. It’s pretty cheap and there is always a class starting up near your city.
What do you know about Dave Ramsey? Do you agree with his teachings? If not, where do you disagree?