Falling Off the Dave Ramsey Diet
By Jennifer Derrick, May 19th, 2008 | 154 Comments »
If you’re interested in personal finance, you probably know who Dave Ramsey is. If you don’t know, he’s a television and radio personality (and author) who preaches a “common sense” approach to getting out of debt and creating wealth. His plan is built around seven “Baby Steps” that are designed to lead you to financial freedom. He calls it the “Total Money Makeover.” Dave is a master motivator who is very good at getting people fired up to do something about their finances, and his advice is generally simple enough that most people can understand what he’s saying. Now that the economy is slowing, I see more and more people turning to Dave for help.
However, there is one problem that I’ve noticed with Dave and his system. I’ve known many, many people who have tried his system and failed because they become frustrated, angry and generally unhappy. Why? Because if you really want to follow Dave’s plan the way he teaches it, there is no leeway, no room for individual circumstances to factor in. The Total Money Makeover is a lot like a very restrictive diet that severely limits your choices and leads to rebellion. Yes, some people are successful, but many others fall off the money diet that is the Total Money Makeover.
If you read Dave’s books and listen to his programs, he is adamant that you follow his seven Baby Steps in exactly the order that they are written, and you may not move on to the next step until the first is completed. While this makes for an orderly approach and is good for those who crave organization, it can cause some problems. Just to review, the Baby Steps are:
1. $1,000 to start an Emergency Fund
2. Pay off all debt using the Debt Snowball
3. 3 to 6 months of expenses in savings
4. Invest 15% of household income into Roth IRAs and pre-tax retirement
5. College funding for children
6. Pay off home early
7. Build wealth and give. Invest in mutual funds and real estate
According to Dave, until you have all your debt paid off, you shouldn’t be saving for retirement. But this ignores the value that compounding interest brings over time. Even if you’re funneling most of your money to debt payments, any little bit that you can put towards retirement will grow much larger in the future. His idea for a $1,000 emergency fund isn’t bad, but in this day and age $1,000 isn’t going to cover many emergencies. You need a bigger fund than that, but you can’t start building it until all debt is paid off. Until then, if you have a big emergency it’s going to have to go on a credit card, putting you further in the hole.
Why can’t there be a compromise between directing large sums of money to debt, but also putting some in savings and toward retirement? Just like a crash diet is a shortsighted approach to losing weight, Dave’s plan is a shortsighted approach to getting control of your finances. His plan focuses too much on getting the debt down as fast as possible without looking at the larger life that you must also prepare for. Paying down debt is a fine goal, but there are other contingencies you need to prepare for, as well.
Dave’s steps also leave no room for fun or unnecessary purchases. He calls it getting “gazelle intense,” but it’s like telling someone on a diet that they can never have chocolate. Of course, deprivation only makes you want it more and can lead to bingeing when the restrictions become too much. Telling someone that they can’t go on vacation or out to eat once in a while is bound to lead to rebellion eventually. Either that or it may lead to depression, which is just as counterproductive to successful financial management. That’s not to say that you need to go on a swanky resort vacation or to a five star restaurant, but his advice ignores the fact that there are less expensive alternatives that can give you a break from the tedium of debt reduction while not breaking the bank. Just like a diet requires you to give up all “bad” foods, Dave’s plan requires you to put off “living” until you reach step seven, which could take years. It’s important to pay down debt and build for the future, but it’s also important to get some value out of today.
His advice also ignores the fact that people have to learn moderation. Just like those who overeat, over spenders have to learn to live in the real world. They have to learn how to spend and save in moderation. Dave’s steps don’t teach people how to live in moderation. You are told from the beginning to simply stop spending, but what happens when you reach step seven and you have built some wealth? Without knowing how to spend moderately, how long do you think it will be before that wealth is gone? His plan does nothing to teach behavior modification. Without that, long term success is iffy at best. As with a dieter, long term success can only be achieved when the causes and triggers of spending are identified and dealt with.
Some people end up feeling like failures on Dave’s plan and give up. Again, look at the dieting analogy. Dieters may be going along great, and then one day they break down and eat a cheeseburger and fries. Then they figure they’ve already screwed up the plan, so why bother to keep trying. This happens to many people who try Dave’s plan. They’re going along great and then they break down and buy a designer handbag (see the rebellion mentioned above). Then they figure that they’ve blown it, so why not get the shoes to match. They resolve to do better tomorrow, but it spirals out of control until they are back where they started. Then they are left feeling like a failure because they couldn’t adhere to this rigid plan and are more reluctant to try again. After all, who wants to feel like a failure? Dave doesn’t teach you how to stop the spiral, deal with the guilt of screwing up, and then get back on track. A more flexible, real-world plan takes into account the fact that we all screw up and shows us how to get back on track.
In what is the great irony of Dave’s model, he frequently advocates that you buy his books, pay to attend his seminars, or pay to join his website. While I understand that the man is a business, he is taking advantage of people’s desperation to get out of debt. Just like diets that promise you that if you buy their food or books or drugs you’ll lose weight, Dave advocates (in a subtle, master marketer’s way) that if you buy his stuff, you’ll lose the debt faster. The simple fact is, with diets or money advice, the more you shell out, the likelier you are to quit when it becomes too expensive. Some people say, “The heck with this. It’s costing too much and I’m not getting anything out of it, so I quit.” Then, not only are they still in a financial or dietary mess, it’s worse because of the extra money spent.
Dave teaches some good things, but his plan is too restrictive to be successful for all people. Yes, some people do very well under rigid restrictions and if this is you, I say, “Great!” However, the people that I have known who have succeeded on his plan have taken the basic steps and then modified them to suit their own needs and life situations.
I would encourage you, if you’re interested in trying his plan, that you modify it to suit your own needs and goals. Learn his baby steps, but also know what will enable you to be successful. Tweak the plan until you find a way to work it that works for you. You don’t have to follow him word for word. The Dave police aren’t going to cart you away if you go your own way. You can move up and down the steps as you need to, going back to an earlier one if you fall off the wagon, or jumping ahead if something is more important to you.
And don’t spend money for materials. You can find his books for free at the library, his show airs on the Fox Business channel, and there are several free websites that are dedicated to his methods. Some churches offer his classes for free.
Without modification of Dave’s plan, you might end up like a frustrated dieter who gives up on the plan because it ends up costing too much and doesn’t take into account the way you really live. Susan Powter, the fitness expert, used to scream, “Modify, Modify, Modify,” during every workout. It’s good advice, both for diets and financial planning.
Image courtesy of .imelda
My take on Dave has always been that he is for those who have totally messed up their finances and are in desperate need of step by step help. You can tell this by how fanatical many of them become. It also shows that they can’t do things on their own if they are unable to graduate and see that finances aren’t black and white and compromises from his plan are in your best interest in certain situation.
If you get to the point where you started with Dave and then have enough confidence to make decisions on your own, then you have finally started to learn about handling your own finances.
Dave Ramsey saved me financially. He created the plan and knows what works best, so to get the most out of it, you need to listen to him. If you aren’t able to follow it, you are weak and you will fail.
I tell all my friends about it and he has saved many of them too. The only reason that you are saying bad things is because you don’t have the willpower to get the most out of what he teaches. That’s the problem with everyone. Nobody is willing to follow good plans anymore.
THANK YOU!!!
You are the first PF blogger I’ve read who dares to stand up to Ramsey. Personally, I don’t like his recommendation to invest in real estate (mutual funds are far cheaper and easier to handle), as well as his loathing of credit cards. I believe they can be good if used in moderation and paid off in time. *shrug*
Seems to me that he’s promoting personal finance by sword and fire – making a number of converts and even changing some people’s lives for the better (like Sybil in the 2nd comment), but doing so by scaring people into submission and discouraging any and all dissent, just like you mentioned…
Great post. Any plan should be taken with a grain of salt and tailored to each’s own individual needs.
I don’t think the author of the piece above has spent much time listening to Dave Ramsey. Dave constantly tells people to adjust his plan, adding some element here or there or skipping/delaying some other part for some reason. Dave’s presentation is rigid, but his application certainly allows for leeway.
Other guru types often leave too much to the individual and end up with people cherry-picking what they want to do and what they don’t. What is the point of accepting advice from another if what you end up with in the end is your own opinion anyway?
I certainly am not interested in buying into a diet and exercise program that says, “Cut carbs, or don’t… reduce calories, or don’t… exercise 4 or 3 or 2 or 1 day a week…” A program is just that, a specified plan of action. Ramsey’s plan is good. He may lay it out in a rigid format, but there is noone standing over you to make you lock-step with every point. And, as I mentioned, anyone who listens to Dave’s radio program very often would know that.
(Obviously, that is a typo in my comment… it should read HAS NOT SPENT much time listening…)
There’s something out there for everyone. You just have to keep looking. Dave might be the only way for some and others will have the ability to modify his plan to fit them. So what if he says this or that, the people listening don’t have to do it his way exactly. The Dave Ramsey police won’t come to their homes. Why would they think that? But I will say that folks that burdened with debt won’t even want a save for a $1000 emergency fund first, they’ll want to pay down debt now. The snowball plan is a good method. I have found that people who put away even a small amount into a IRA/401K/403b feel richer and are more willing to pay down debt. $30 into an IRA/401K/403b a month isn’t going to derail a snowball program. Some have to live in the box with lots of rules, some with the right motivation can make small adjustments to the box and rules and do just fine. Do what works for you.
On the plus side, at least he is providing a structure, which you can then use with modifications. And for the people who are fired up, it’s probably best that the material is not watered down.
Dave is a financial Hack who plays to media just like Suze Orman. I’ve always considered these two people as advisors for the seriously uneducated (financially). You’re absolutely right. Dave forgets about the power of compounding interest. I’m 26 and I put aside money for retirement and I payoff debt. The reason? $50 now is going to worth more than $50 in the future. Get a clue Dave.
Why are there so many people hostile to Dave? He has helped a lot of people get out of debt. That’s a good thing that should be praised.
we were never bad off financially just not getting as far ahead as we liked,Dave introduced me to the fact that if you quit borrowing money you will have money and no longer need to borrow it,it is so true I paid off all my loans and no longer pay any interest to anyone
I get to keep my paycks and rent moneies , not sure how that dooms me in retiremnt
I am not sure why some people are so anti Dave to the point of being fanatical about it,i do not care for that rich dad poor dad idiot but if you love him and its working for you i will not bash him in front of you
LOL I wished I had spellchecked my comment LOL I guess even a hick can be successfull with Daves help,is that why everyones hates him?
I’m a rather skeptical person in general, but my spidey-sense really perks up when I see someone who attracts followers of the “this is the only way to do it, you’re just too stupid/weak to do it” sort. If you can’t defend a plan’s merits without name calling, then maybe there is a problem with the plan!
I don’t doubt that Ramsey’s plan has helped some people out — and that’s great. However, I agree that with any such plan, you should be prepared to modify it to fit your specific situation — and we are all in different situations. For some people, trying to follow Ramsey’s plan may not work and in fact they may end up worse off than if they just practiced moderation.
My husband and I are tackling debt our own way and it’s working great for us because it’s going down while our happiness is going up. If we followed some other peoples’ plans for us, we’d be miserable. That’s not being weak, that’s just understanding what does and does not work for us.
If what you say is true, IMNSHO, Dave Ramsey is the financial equivalent of a quack!
Dave Ramsey has a common sense style approach. He helps people to wake up about being dumb with their money. His advice helped me become debt free (not including the house)(paid off around $30,000 in 10 months). I do not feel deprived of anything. His budgeting approach is great. This approach is what got us going on the right path.
There are really very few ways to create wealth. All financial advisors preach the same basic principles, but use different steps or strategies to accomplish them. It is up to the individual to find out what works best for them. Some people can handle flexibility, but some require rigidity. My philosophy is to understand the concepts behind the steps so I can make grounded decisions given my personal circumstances.
I think that Dave Ramsey is great for someone who is getting a grasp on their finances and needs help coming out of debt. He offers a program and it’s up to you to take from it what you can. He often says that everyone’s situation is different and that you may need to vary the way your financial plans.
The only thing I would do different in his program is to contribute to the 401K up to whatever the company is matching. That is like getting free money. I don’t see why you can’t do both.
It’s like some diets. Some people can’t have a candy bar in the house or they will eat it, so by removing it your chances of failing are less in the beginning. Every person’s situation is differently. What I have seen him do recently is his road shows and you see a totally different person on the stage.
I don’t think that he wants you to restrict everything. Maybe in the beginning but eventually when your finances are under control – you can add in some of the former things that you enjoyed.
I think Dave Ramsey’s plan is great for people that have no financial skills, other than spending money. Which is why this program is strict. I think that you will have set backs, but it is the process of overcoming those obstacles that developes the changes in money habits.
I think that you can go on vacations, but this needs to be a budgeted expense, not something that goes on a credit card. If one doesn’t have the funds to make these splurges, it is probably a good indication that they are living above their means.
As far as his seminars, books, etc. are concern, Dave is in the business of helping those with a system that he developed so he should be able to charge. Franchises are not criticized for selling their systems, so why shouldn’t he. After all, the market dictates if his products are worth purchasing, and apparently they are.
As far as saving for retirement is concerned, if your paying over 20% in interest charges, but your retirement is earning at best 10% (which I doubt with the current economy), common sense should tell you that by simply eliminating credit card debt would allow you to earn 10% that you would otherwise be paying.
Anyway, enough of my rant! Good luck for those in the process or about to beging!
I follow Dave Ramsey, but not completely. My financial strategy
to building wealth is a combination of many financial gurus and mine. I pay myself first, I don’t spend if I can’t pay for it at the end of the month, I fund a 403B with pre-tax money, hope to fund my Roth fully and I pay an extra mortgage payment or more per year.
I still say that Ramsey and Suze are providing a great service to the public.
It isn’t Dave Ramsey, but his followers that drive me nuts. I understand it’s like a religious experience to them to see that it is possible to be financially secure, but then they go onto boards and forums and start shouting about how great it is to people that know that it’s OK, but it has some problems. Then they get all offended when you point out the problems. They remind me of religious nuts that have swallowed the koolaid
vostel and aevans1206 have points. Nobody raves with religious fervour about Andrew Tobias, yet his _The Only Investment Guide You’ll Ever Need_ is a consistent bestseller when it’s updated and reprinted. My guess is that people who read more than they watch TV or listen to radio aren’t so prone to proselytizing.
I read _The Total Money Makeover_ and found it telling that most of the case studies were white and in, ah, non-coastal States. But hey, if his advice is followed by lots of people and they get out of debt and onto the path of financial well-being, that’s good for all of us. I just don’t see him as the end-all and be-all of gurus, and I don’t see his path as THE PATH.
noncoastal states? I am afraid i do not get what group of people you are trying to put down?
If you want to stay away from Dave, then you’ll also enjoy staying broke.
Per G.L.’s comment, “Personally, I don
Per vostel, “It isn
“In what is the great irony of Dave
My rant is almost over,
Books For Every Level of Financial Acumen by Jennifer Derrick, May 16, 2008
“With that in mind, I
I’m one of those success stories you see in his books. Page 116 of the newest edition. I guess I would be one of those crazy nut fans. My suggestion, that if you want his method to work, you must follow it, as it is. There is a reason it is the way it is, and it’s because it will work, guaranteed. If someone is looking to change, and their way already isn’t working, why continue some of the same habits?
Dave gives you a primary education in personal finance. It’s enough to do ok if you follow it – better than no education, but not nearly as well as you can do if you decide to get yourself a secondary education.
Like anything else, financial security requires knowledge and common sense. Ramsey’s advise is the hardcore stuff that some need. I look at his stuff as being great for people who have no knowledge or willpower to stop spending. Those people need someone to dictate and not give them leeway. For the rest of us, who can handle change and apply common sense, we have our own home-grown variations and they work well.
I think this blog is correct but it comes down a little hard on Ramsey, who has really done great things for a lot of people. Just because his advice is not perfect for everyone doesn’t mean that it is complete invalid.
My biggest compliant is that all these Financial gurus are never honest. The first thing they should do is tell everybody the secret to getting rich is as follows. Take the same basic steps that have been preached for years (payoff debt, save for rainy day, not use CCs, etc.) and rehash it into a book and then make tons of money selling books,charge people for seminars, dvds, etc. Also throw in a sad story about how you were broke, filed for bankruptcy.
It makes sense that many do not like DR to follow his advice it takes willpower not the haphazard hope to retire someday mentality of the want it now crowd
(do you like the assumtion that you are all just a bunch of spoiled folk who want it now if you do not follow the plan LOL)
I think we should have a way to verify peoples networth before we let them spew, as who cares what broke people say about money
that would help decide who is right on this issue wouldn’t it?
I always find it amazing that there are people who think that others should not make money selling his own brand of knowledge.
When you want to diet, you buy the author’s books, maybe supplements, tapes, maybe even food products. No one questions that.
But for the person who teaches about money; he is not supposed to charge for his or her services?
They aren’t in the charity business and yet I’m sure that Dave Ramsey sends out alot of free books and materials.
This is a capitalistic society and he has found his niche and there are those that have been helped greatly by his advice.
Anything can be frustrating if you follow someone elses plan without modifying it to fit your situation.
Dave does teach moderation, but it might be missed if you just read the books without tuning into he radio show.
Also, spending moderately is actually encouraged in the FPU DVD series. Check it out.
Thanks and you have a well written site.
I think you got the emergency fund stuff wrong. Dave advocates a beginner emergency fund of $1000 while you are paying off debt. Once the debt is paid off you build up a fund of 3-6 months of expenses. This seems pretty practical
I will say that in our financial counseling sessions we recommend the $1000 for people who do not own a home or have kides. For those that do we suggest $2500
I like Dave Ramsey, and while your criticisms of his advice are certainly valid, but I think they shouldn’t be used to discourage what he does or stop people from trying his advice.
First, Dave Ramsey is giving advice to the masses. He can’t give personalized advice, so therefore he has to be as broad as possible to reach as many people as possible. The beauty of the advice is that if you follow it, it will more or less work. At the end, you’ll be in good financial shape. Few people are in such bad shape that it would take more than 3 years to pay off all their debt. While 3 years is important for compounding interest, it will not make or break retirement
Second, it is unrealistic to think any broad advice, directed toward everybody, will work for everyone. You’d have to criticize anyone who gives advice that it doesn’t work for everyone, so its not good advice. That’s not fair. For the record, I understand where you are coming from on this as he presents it as advice for everyone and is adamant about people following it.
Third, if you advocate saving for retirement and not being gazelle intense, the debt will stick around for a long, long time. For example, let’s say instead of paying 100% of what you can (we’ll call that gazelle intense), you pay 50%, but you pay that towards both retirement and debt. You will only end up paying 25% of what you could towards the debt, and 25% towards retirement. That debt and interest is not going away any time soon.
Again, your criticisms are valid (including the ones I haven’t addressed), but on the whole I think he should be commended. He advice will work if people follow it.
I think Dave’s approach is cold water in the face to really get people’s attention. It tends to really wake people up who are sort of stumbling through life with no real plan. Like you, I disagree with some of the finer points, but as a whole I appreciate Dave for being one of the first to preach living free from the grips of banks and credit cards.
Ramsey
I’m a Dave Ramsey show fan, a Financial Peace University graduate and an FPU coordinator. I’m a bit biased.
I also understand Dave’s point of view and the reasons *why* he teaches people the baby steps the way he does. The whole point is to *change behaviour*. He advises people to do what wealthy people do. He has 20 years of experience teaching and doing what he teaches.
You don’t have to follow his plan. That’s okay. You can continue your life as a slave to mortgages, car lenders and credit card companies. I like freedom, so I followed Dave’s plan and as soon as we sell our house, we’ll be completely free of debt slavery.
As for Dave not understanding the power of compound interest?
Get a freaking CLUE. The very first thing he teaches in his Total Money Makeover Live Events and the very first thing taught in Financial Peace University is the need to save money BECAUSE OF the power of compound interest.
So why does he tell people to stop saving for retirement? Because that is a TEMPOARY BEHAVIOUR CHANGE to get them out of debt. An additional $200-300 against the debt snowball makes it that much faster. Then after the full emergency fund is built, he says start saving again.
Guess what else? He teaches people to pay off their mortgage so they can pay themselves a mortgage payment to use the power of compound interest!
If you think he doesn’t know what he’s doing, you really don’t have a clue. Again, 20 years experience. He knows more about personal finance than probably most of the people on this site and the other Personal Finance blogs.
But thats okay, you don’t have to listen to him. You don’t have to follow his advice. You can keep playing your games with the credit card companies, thinking you’re going to win at THEIR game where THEY set the rules. Think that you can win? Wait till they decide to jack your interest rate up from 10% to 28% because they FEEL LIKE IT.
Playing games with snakes gets you bit. Its a matter of time. I’d rather not take the risk, because buying stuff with actual money feels better than using plastic. Oh, and I don’t buy as much crap I don’t need.
Sorry for the mis-type, I meant to write that Ramsey says that handling money is 20% financial intelligence and 80% behavior.
What really bothers me about Dave fanatics is that they make statement like
“You don
We have been on the Dave plan for a few years now. We have modified it to work for us. For instance we insisted on a $2000 EF to start with. We felt more secure. I have also found it is good to celebrate a little when you meet each goal. So when the debt was gone, we celebrated. Either by going out to dinner, or purchasing something that we had needed/wanted, but that wasn’t in the Dave plan. It helps keep people motivated. I know other people that take a mini vacation once a year. $400 or so, instead of $4000 for a full blown vacation and they get to relax and take a break from the Gazelle Intensity for a few days.
I have read many, many finance books and I have learned that each one offers something useful and that no one is perfectly right.
“You
It’s pretty hard to see financial experts as legit when they make money off of helping you with your money (i.e. Ramsey, Orman, Bach, etc.).
On the other hand, you’ve got folks like Joe Dominguez and Vicki Robin who don’t charge for their website and is all-volunteer based. You also have personal finance bloggers that provide good resources online.
There’s definitely a business with financial experts where I wonder how much they are making off of people they are advising not to spend too much.
“It
The author is too focused on the techinical details and missing the general idea.
Dave stresses no debt. pretty simple actually, but it’s simplicity is what causes so much problem.
The steps…they are a guide. Should you get your 401K match…of course. Use common sense. Don’t turn down free money.
The basic idea is forget leverage, forget tax benefits, forget FICO scores, forget what you think you know, and don’t borrow money.
PAY CASH for everything. If you REALLY think about it, you will start to see he is absolutely correct.
For most people, credit cards are dangerous, even those who think they are convienent.
Dave discusses RISK. That is what the author is missing. No debt means little risk
No CC means no risk. When you truly understand money (I have 2 degrees in finance) you understand risk is the fulcrum upon which your financial decisiion should be made.
When risk is taken ito account properly, not taking on any debt becomes the smart choice for most people most of the time.
As far as a firm guide with little wiggle room, that is by design. If you have wiggle room, most people will “justify” themselves back into the hole they are trying to get out of.
OH poor me, I cant take a vacation. Exactly. You can’t afford it. You don’t have the money, you don’t go.
OLD SCHOOL RULES are sometimes tough for new school people.
I had to laugh while reading some of the comments that said if you don’t do Dave’s plan his way your going to be a slave to the credit card companies. We have never had credit card debt.
It doesn’t make sense to pay down the 50K worth of student loans sitting at 2.5% interest and not invest for retirement. So we get the company match. Our car is on its last legs and so we are saving for a replacement rather than immediately paying down on our student loans. I’m doing the baby steps out of order and apparently I’m always going to be a slave to stupid tax. That makes me laugh as I’m working towards not needing a car loan. There is no public transportation here and I think its important to be able to get to work.
I just figured if critics of a well written critique were going to cherry pick and use a single example to disprove the whole I could do the same with our personal situation.
I have to agree with other commenters who say that you clearly haven’t listened enough to what Dave actually says. He absolutely tells you to adjust his plan. I’ve heard him prescribe adjustments for: a baby on the way, a single income family, a high income family with higher expenses – and those are just off the top of my head. I remember them because they have applied to me.
Several of the steps you list as consecutive are actually to be worked concurrently (steps 4, 5 and 6).
His program as insists that you budget in some “blow” money so you don’t destroy your budget. That means that if you’ve just GOT to go out to eat, or take a little weekend trip, you can do it. He encourages you to cut to the point that you can keep going.
His plan, as you describe it, would be lacking for most people. His plan, as it really is, however, could be a huge help to anyone.
“You
As with any advice or program, I think it’s a given that each person tailors the advice to work for themselves.
Ramsey gives the plan as he understands it, and those who take his advice work with it to make it a viable part of their own unique circumstance. Obviously he can’t account for every unique situation that may arise; often in giving advice, offering a general framework that each person can later modify is the best method.
And regardless of whether he supports modification of his plan or not (I can’t speak to that as I am not an avid follower of his program or teachings, though there seems to be some conflicting views regarding that in the comments), it is the responsibility of every consumer to take the initiative to tailor plans to suit his or her own needs, no matter what the advisee may say about it. After all, we, and not the person who advises us, ultimately live with the results of our actions.
I wouldn’t take anyone’s words at 100% face value and attempt to use them without making the necessary changes required to make the words applicable to my own life. I take it is a given that each person will take what works and leave the rest from any plan/program. Ramsey’s books do help people. Some may not need them; others may. The point is there is no one size fits all plan–even when someone insists there is. And the tailoring process is up to each consumer, not the person giving the advice. As far as I’m concerned that is simply a given in life, in its every aspect.
I guess my point is this scenario is in no way unique to Ramsey, because regardless of whether or not the one giving the advice or creating a program suggests individual tailoring (and again I can’t say whether Ramsey does or doesn’t), I believe the need for individual tailoring should be a given in every circumstance. I see no need to single out Ramsey when the premise of “tweak[ing" and "modify[ing]” a plan “to suit [one's] own needs and goals” applies (at least in my view) to every single piece of advice we, as adults, recive from anyone in any format throughout our lifetimes.
I enjoy his show and find it inspiring. But I’ve heard him say a couple of times that if you don’t do his plan, its OK as long as you have a plan and you are serious about it and that plan takes you out of debt.
I didn’t quit saving for retirement at work, I even opened a Roth, and after paying off a debt, I would snowball some of that payment, and I put $50 a month more into my Roth.
I didn’t sell my car, but I started saving for mine next one. I also do see the inside of a restaurant every now and then, but it keeps my wife on board, and we finally started working together on our common finances.
I stopped using credit cards and started using a debit card. But I still put hotel reservations on the one credit card I do keep around. My wife and I have separate checking accounts, but not because we are preparing for divorce (as he says), but because we both see a checkbook like a wallet and we both need one of those.
I’m not exactly gazelle intense, but more like what I call “Antelope at the Watering Hole”. I also don’t have a big hole to get myself out of. But I don’t think he’d get out the wet noodle if I called his show.