Dave Ramsey

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Dave Ramsey
Born (1960-09-03) September 3, 1960 (age 60)[1]
OccupationPersonal finance consultant, radio show host, author, businessman
NationalityAmerican
Alma materUniversity of Tennessee (BS)
SubjectPersonal finance
Notable worksThe Total Money Makeover
SpouseSharon Ramsey
ChildrenDaniel Ramsey
Denise Ramsey Whittemore
Rachel Cruze
RelativesAnne Ramsey (Aunt)
Website
www.ramseysolutions.com

David Lawrence Ramsey III (born September 3, 1960) is an American personal finance personality, radio show host, author, and businessman. He is an evangelical Christian, and hosts the nationally syndicated radio program The Ramsey Show. Ramsey has written several books, including The New York Times bestseller The Total Money Makeover, and hosted a television show on Fox Business from 2007 to 2010.

Early life[edit]

Ramsey was born in Antioch, Tennessee to real estate developers.[2] Ramsey attended Antioch High School where he played ice hockey. At age 18, Ramsey took the real estate exam[2] and began selling property, working through college at The University of Tennessee, Knoxville,[2] where he earned a Bachelor of Science degree in Finance and Real Estate.[3]

By 1986, Ramsey had amassed a significant portfolio worth over $4 million.[4][5] However, when the Competitive Equality Banking Act of 1987 took effect, several banks changed ownership and recalled his $1.2 million in loans and lines of credit.[2] Ramsey was unable to pay and filed for bankruptcy in 1988.

Career[edit]

Ramsey experienced several years of financial recovery and began offering financial advice to couples at his local church.[5] In 1988 he founded the Lampo Group, a financial counseling service,[5] and in 1992 he wrote and self-published his first book, Financial Peace.[4][2]

Ramsey began as one of three alternating hosts of The Money Game on radio station WWTN/Nashville in 1992. The show eventually became The Dave Ramsey Show, Ramsey's daily three-hour call-in financial advice talk show.[2][6]

Financial Peace University, Ramsey's nine-lesson, $129.99 video-based personal finance course, debuted in 1994.[7] The Gannett newspaper group ran his financial column, but dropped it when they realized that Ramsey fabricated the letters he was responding to.[2] The Dave Ramsey Show aired on the Fox Business Network from 2007-2010.

In 2014, The Lampo Group, Inc. was rebranded as Ramsey Solutions.[8] The company's headquarters are located in Franklin, Tennessee and a new 47-acre campus opened there in 2019.[9]

Ramsey has written five books for adults, three of which were New York Times bestsellers, and six children's books.[2] He was inducted into the National Radio Hall of Fame in 2015.[6]

Teachings[edit]

Ramsey advises listeners to first reduce debt using the debt snowball method, where debtors pay off their lowest balances first.[10][9]

Ramsey adamantly opposes the use of credit cards.[11] At live shows, he sometimes takes out his wallet to show audiences the "only four pieces of plastic" he carries: A business debit card, a personal debit card, a driver’s license, and a concealed-carry permit.[2][9] Ramsey encourages the use of cash and advises families to utilize an envelope system, putting a cash allocations for each month's food, entertainment, etc. in separate envelopes and then spending only what is in the envelope.[12]

Ramsey encourages people not to take on student loan debt.[9]

Criticism[edit]

Critics of Ramsey's core teachings point out that it is often a "one-size-fits-all" that both disregards income disparities and ignores financial emergencies.[12][9] The debt snowball method is frequently debated, and studies have returned results that both support and oppose its efficacy.[13] Ramsey's investing advice has also drawn criticism over its reliance on stock investment, as opposed to bonds, using mutual funds with load fees, and its frequent assurance of 12% annual returns on investments.[14][15][16]

Controversies[edit]

In 2014, The Daily Beast reported that Ramsey had lashed out against former employees he claimed were discussing working conditions at the company on Facebook and Twitter. At company staff meetings, Ramsey allegedly recounted conversations from a private Facebook group of former employees that he had infiltrated, eventually offering cash rewards for the identities of some members who took to anonymous Twitter accounts once they realized Ramsey had joined the private group. The incident prompted increased backlash, a meeting Ramsey set up to confront alleged critics, and the eventual deletion of several of the critical Twitter accounts.[17]

In July of 2020, Caitlin O'Connor, a former Ramsey Solutions employee, filed a federal lawsuit against the company alleging that she was fired for being pregnant and, since she wasn't married to the baby's father, for violating Ramsey Solutions' employee conduct policies.[18]

On March 10th of 2021, featured personality Chris Hogan, left the company citing "things going on in my personal life... that are not in line with Ramsey Solutions."[19] Hogan's resignation followed a request for his personnel file at Ramsey Solutions during the Caitlin O'Connor case. Prior to the release of his book, "Everyday Millionaires", Hogan admitted to several affairs, including one with a co-worker at Ramsey Solutions during his marriage to wife Melissa Hogan.[20] References to his book and videos are still available on the Ramsey website and Youtube channels, however direct links on the Ramsey Solutions website are replaced with a redirect page for other company resources.

COVID-19 response[edit]

In December 2020, a complaint was filed with the Franklin health department alleging that caterers hired for the Ramsey Solutions Christmas party at its company headquarters were instructed not to wear masks or gloves while serving, which the company later confirmed to the local NBC affiliate.[21] Ramsey Solutions responded that there was no truth to the complaint.[22] The company had drawn attention earlier in the pandemic for remaining open after employees tested positive for the virus, for ignoring recommendations to avoid large gatherings, and for hosting a July business conference after the Marriott hotel cancelled citing safety concerns.[23]

On his radio show[24] and in staff meetings, Ramsey railed against face coverings and other COVID-19 precautions, calling them "a sign of fear".[25]

In February 2021, Ramsey appeared on Fox News where he said, "I don't believe in stimulus checks, because if $600 or $1,400 changes your life you were pretty much screwed already. You got other issues going on."[26][27]

Personal life[edit]

Ramsey is an evangelical Christian[9] who describes himself as conservative, both fiscally and culturally.[5][7]

Ramsey married his wife Sharon in 1982, and the Ramseys have three children: Daniel Ramsey, Denise Ramsey Whittemore and Rachel Cruze. Cruze works with Ramsey Solutions.[9]

Ramsey owns a large $15,450,000 Nashville-area home.[28]

References[edit]

  1. ^ Dave Ramsey Show Newstalk 550 KTSA. San Antonio, Texas. 3 Sep. 2012. Radio.
  2. ^ a b c d e f g h i Drury, Susan (May 31, 2007). "The Gospel According to Dave". Nashville Scene. Archived from the original on January 5, 2021. Retrieved January 6, 2021.
  3. ^ "Check out the latest from Dave Ramsey!". daveramsey.com. Retrieved March 30, 2020.
  4. ^ a b Ramsey, Dave; Sharon Ramsey (2003). Financial Peace Revisited. Harmondsworth, Middlesex, England: Viking Penguin. p. 325. 0-670-03208-5.
  5. ^ a b c d Ross Jr., Bobby (March 31, 2003). "Christian financial guru crusades against overspending". Google News. Ocala Star-Banner. p. 6C. Archived from the original on January 5, 2021. Retrieved January 5, 2021.
  6. ^ a b "Dave Ramsey". Radio Hall of Fame. Archived from the original on January 5, 2021. Retrieved January 5, 2021.
  7. ^ a b Alberta, Tim. "The Financial Whisperer to Trump's America". Politico. Archived from the original on March 11, 2018. Retrieved January 7, 2021.
  8. ^ "Company History". daveramsey.com. Archived from the original on January 5, 2021. Retrieved January 6, 2021.
  9. ^ a b c d e f g Bahler, Kristen (April 16, 2019). "Broke Millennials Are Flocking to Financial Guru Dave Ramsey. Is His Advice Any Good?". Money.com. Archived from the original on January 5, 2021. Retrieved January 6, 2021.
  10. ^ White, Martha (August 16, 2012). "The Verdict Is In: Tackle Smaller Debts First". TIME. Archived from the original on February 4, 2013. Retrieved January 6, 2021.
  11. ^ Grisby, Lorna (February 17, 1997). "Digging Out of Debt". People Magazine. People.com. Archived from the original on January 16, 2021. Retrieved January 16, 2021.
  12. ^ a b Olen, Helaine (October 28, 2013). "The Prophet". Pacific Standard. Archived from the original on January 16, 2021. Retrieved January 16, 2021. CS1 maint: discouraged parameter (link)
  13. ^ Berger, Rob (July 20, 2017). "Debt Snowball Versus Debt Avalanche: What The Academic Research Shows". Forbes.com. Archived from the original on January 16, 2021. Retrieved January 16, 2021.
  14. ^ Carrns, Ann (May 13, 2011). "Dave Ramsey's 12% Solution". The New York Times. Archived from the original on January 4, 2013. Retrieved January 6, 2021.
  15. ^ Stoffel, Brian (June 3, 2013). "Dangerous Retirement Planning Advice From Financial Guru Dave Ramsey". The Motley Fool. Archived from the original on January 5, 2021. Retrieved January 6, 2021.
  16. ^ Salmon, Felix (September 26, 2013). "Save like Dave Ramsey ... Just Don't Invest Like Him?". Money.com. Archived from the original on February 2, 2021. Retrieved February 2, 2021.
  17. ^ Turner, Matthew Paul (May 29, 2014). "Spies, Cash, and Fear: Inside Christian Money Guru Dave Ramsey's Social Media Witch Hunt". The Daily Beast. Archived from the original on September 13, 2020. Retrieved January 7, 2021.
  18. ^ West, Emily R. (July 21, 2020). "Lawsuit: Former Ramsey Solutions employee alleges firing over pregnancy". Tennessean. Archived from the original on January 16, 2021. Retrieved January 17, 2021.
  19. ^ Finley, Jeremy (March 11, 2021). "Lawsuit alleges Dave Ramsey's company fired/disciplined employees for premarital sex". WBIR.com. Archived from the original on April 15, 2021. Retrieved April 15, 2021.
  20. ^ Smietana, Bob (March 10, 2021). "Chris Hogan, retirement expert and Dave Ramsey protégé, departs Ramsey Solutions". Religion News Service. Archived from the original on April 15, 2021. Retrieved April 15, 2021.
  21. ^ Finley, Jeremy (December 11, 2020). "Dave Ramsey's company Christmas party subject of non-mask compliance complaint". News 4 Nashville. Archived from the original on January 8, 2021. Retrieved January 9, 2021.
  22. ^ Hale, Steven; Jamieson, Dave. "Personal Finance Guru Dave Ramsey Just Threw A Huge Indoor Christmas Party". Huffington Post. Archived from the original on January 8, 2021. Retrieved January 8, 2021.
  23. ^ Hale, Steven (July 8, 2020). "Dave Ramsey to Host Business Conference in Franklin as COVID-19 Cases Rise". Nashville Scene. Archived from the original on January 8, 2021. Retrieved January 9, 2021.
  24. ^ Ramsey, Dave (November 19, 2020). "This Has Gotten Out of Hand! – Dave Ramsey Rant". The Dave Ramsey Show – YouTube. Archived from the original on January 8, 2021. Retrieved January 9, 2021.
  25. ^ Smietana, Bob (December 11, 2020). "Dave Ramsey, Christian personal finance guru, defies COVID-19 to keep staff at desks". Religion News Service. Archived from the original on January 8, 2021. Retrieved January 9, 2021.
  26. ^ Lonas, Lexi (February 11, 2021). "Dave Ramsey on stimulus checks: 'If $600 or $1,400 changes your life, you were pretty much screwed already'". The Hill. Archived from the original on February 13, 2021. Retrieved February 23, 2021.
  27. ^ "If a $600 Stimulus Check Changes Your Life, Then You're Already Screwed!". The Ramsey Show on Youtube. Retrieved February 24, 2021.
  28. ^ Klett, Leah Marieann (March 10, 2015). "Dave Ramsey Offers Powerful, Biblically Sound Response to Criticism over His Multi-Million Dollar Home". The Gospel Herald. Archived from the original on March 6, 2016. Retrieved January 6, 2021.

External links[edit]