Want a healthy relationship with money? Then stop following Dave Ramsey’s advice.
Dave Ramsey is a polarizing figure in the world of personal finance, and it's time to address the elephant in the room: his approach is toxic. After yet another couple came to me in distress, I feel compelled to speak out boldly against his teachings. Here's why I no longer subscribe to any of his content.
Let's start with a story. I recently met with a couple drowning in financial stress. What struck me wasn't just their money troubles but the overwhelming guilt and shame they carried. They have credit card debt, they're barely making ends meet, and now they urgently need a new vehicle. With a tax return in hand, they face a tough choice: pay off debt or use it for a down payment?
Their first question to me was, "Dave Ramsey says you should pay for a car in cash, what do we do?" The shame they felt at the thought of a car payment was palpable. They've internalized Ramsey's teachings about beans and rice and paying in cash, but here's the reality check: Ramsey's approach is unrealistic and unsustainable, like a crash diet for your finances.
Ramsey isn't a coach; he's a self-proclaimed "guru" (and arguably a bully) who shames anyone who deviates from his plan. I refuse to buy into this dogma any longer, as it is truly damaging and preventing people from getting help. There are multiple paths to financial freedom, and the best one is free of guilt, shame, and constant restriction.
Do I think there's value in Ramsey's Baby Steps? Yes… and, there is more than one way to get there. I've worked with clients who needed a larger emergency fund than $1,000 to feel secure, so we adjusted. I'm currently working with someone who's simultaneously saving for a down payment on a home and building an emergency fund—flexibility is key. Then there is the married couple who for their own reasons, will not combine their money -their feelings are completely valid! Can they still “win” with their money? OF COURSE!
Guilt and shame over not following a one-size-fits-all approach does not lead to a healthy relationship with money. True financial peace comes from healing your relationship with money, and that's the heart of coaching.
Ready to break free from the guilt and shame of traditional financial advice? Let's work together to create a personalized plan that fits your life. Schedule a consultation today and take the first step towards financial peace and empowerment.
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Disclaimer: This post is not intended to discredit or invalidate Dave Ramsey's financial principles, which have helped many people achieve financial stability. Rather, it aims to highlight the importance of a personalized approach to finance that takes into account individual circumstances and challenges. As a former Ramsey Preferred Coach, I have seen firsthand the benefits of his program. However, now that I am on the outside, I do see aspects of his approach as toxic and believe in the value of tailored financial guidance.
