Listening to Dave Ramsey

As the Dave Ramsey empire grows, I have become akin to listening to his podcast even though it is 38 minutes long with 15 minutes of ads for his own or endorsed products. Now don't get me wrong, Dave does provide great advice for people as far as getting rid of debt, building wealth and the behavioral finance problems of the masses go, however his big broad brush approach to everyone's problems is hard for me to swallow (I have this problem with most of the "famous" financial counselors). If you listen to the end any of his programs it basically says, "we suggest you seek the advice of a financial professional". If that's the case, then what is Dave Ramsey....

Let me take a stab at a description: An egotistical man who is making big time money with all of his kits, programs, and monthly fees.

If you want to be a part of his website, it's $8.95 a month. How great is that...if your broke and in debt, pay me $8.95 a month to partake in mytotalmoneymakeover.com. What's the future value of that $8.95 a month over 30 years making 8% (no, not the 12% Dave likes to refer to in all of his FV calcs)? And the answer is.... $12,166.62.

--EDITed 8/17/05, thanks fivecentnickel.com--


At 8/16/2005 03:07:00 PM, Blogger nickel said...

I think your math is a bit off. $8.95/month for 30 years = $3,222 before factoring in the 8% growth. Or maybe you were just figuring the value of one year's contributions at the end of thirty years?

At 8/17/2005 06:45:00 AM, Blogger Financial Fruition said...

Nice catch, my payment per year was off in the calculation. I was calculating what the FV of $8.95 a YEAR was for 30 years at 8%, not the FV of $8.95 a month ($107.40 a YEAR) was for 30 years at 8%.

At 8/17/2005 02:00:00 PM, Blogger JLP said...

I'm not a Dave Ramsey fan myself. I agree that a person should not have credit card debt and automobile debt. However, I also think debt can be used as a tool.

My church just finished up a Financial Peace University. The box of stuff was $90. That's a pretty big chunk of change. Although I didn't attend the series, I had several people tell me that it was pretty good. Of course most of these people hadn't really thought about this stuff before.

Dave Ramsey is a business man. He has figured out a way to profit on other people's stupidity.


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