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Dave Ramsey

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Not to be confused with Dave Ramsay or Dave Rumsey (disambiguation).

For other people with similar names, see David Ramsey (disambiguation).

Dave Ramsey
Ramsey in 2023
Ramsey in 2023
Born (1960-09-03) September 3, 1960 (age 64)[1]
Antioch, Tennessee, U.S.
OccupationPersonal finance consultant, radio show host
Alma materUniversity of Tennessee (BS)
SubjectPersonal finance
Notable worksThe Total Money Makeover
SpouseSharon Ramsey (m. 1982–present)
Children3
Website
ramseysolutions.com

David Lawrence Ramsey III (born September 3, 1960) is an American author, radio show host, businessman, and personal finance personality. He is the founder and chief executive officer of Ramsey Solutions and a co-host of The Ramsey Show, a nationally syndicated radio program. Ramsey is known for his books on personal finance and business—including The Total Money Makeover, a New York Times bestseller.

Early life and education

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Ramsey was born on September 3, 1960, in Maryville, Tennessee, to parents who worked in the real estate industry.[2][3] He was raised in Antioch, Tennessee, and graduated from Antioch High School.[4] At age 18, Ramsey took the real estate exam and began buying and selling property while attending the University of Tennessee at Knoxville, where he earned a Bachelor of Science degree in finance and real estate.[3][2]

Career

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See also: Ramsey Solutions and The Ramsey Show

By 1986, Ramsey had accumulated a real estate portfolio valued at over $4 million.[5][6] Following the passage of the Tax Reform Act of 1986, he was unable to meet his loan obligations and filed for bankruptcy in September 1988.[2][7]

While rebuilding his personal finances, Ramsey began providing financial counseling sessions at his church.[3] In 1991, seeing his demand for counseling grow, he formed The Lampo Group (now known as Ramsey Solutions) to begin providing counseling professionally.[8][5] Ramsey wrote and self-published his first book, Financial Peace, in 1992.[6][3]

Ramsey’s media career began that same year, when he was a guest on a local radio show on WWTN in Nashville—answering money-related questions from listeners and promoting his book. After the show’s host left the station over a financial dispute, Ramsey and two other money experts began hosting a show called The Money Game.[9] The show eventually became The Dave Ramsey Show, a daily three-hour call-in financial advice talk show.[10]

In 1994, Ramsey introduced Financial Peace University, his nine-lesson course on personal finance.[11]

In 2004, the Gannett newspaper group dropped Ramsey’s financial advice column after discovering that the names in readers’ letters had been changed without disclosure. Ramsey corrected the situation by offering to pay Gannett their money back.[3]

In October of 2007, Ramsey took his radio show to television with The Dave Ramsey Show on Fox Business, which aired until 2010.[12][13]

In 2014, The Daily Beast reported Ramsey had criticized former employees for discussing company culture on social media. Ramsey himself reportedly infiltrated a private Facebook group, offered cash for the identities of its members, and later addressed the situation in staff meetings. Some Twitter accounts linked to former employees alleged that Ramsey "pulled a gun out of a bag to try to teach a lesson about gossip."[14] The incident prompted an increased backlash, a meeting Ramsey set up to confront critics, and the eventual deletion of several of the critical Twitter accounts.[14]

The Dave Ramsey Show was renamed The Ramsey Show in 2020 to better incorporate the show’s new full-time co-hosts, and to position the brand for long-term continuity beyond Ramsey’s personal involvement. Ramsey was quoted saying that the name change will "set the show up for generational success; that it doesn’t die when I do."[15] Ramsey also said that he will continue to co-host The Ramsey Show "as long as I make sense."[15]

During the COVID-19 pandemic, Ramsey opposed public health measures such as mask mandates, referring to them as "a sign of fear."[16] On his March 2, 2020, show, Ramsey dismissed refund requests for his upcoming live events, calling those who sought them "wusses" and stated that he would attend an event "by my freaking self" if necessary.[17]

In February 2021, Ramsey told Fox News that he did not support stimulus checks, saying, “If $600 or $1,400 changes your life you were pretty much screwed already. You got other issues going on.”[18][19]

Teachings

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Ramsey advocates a biblically based approach to personal finance, which includes a debt-free lifestyle—a stance shaped in part by his own experience with bankruptcy.[2][20]

One of Ramsey’s central strategies is the "debt snowball" method, in which individuals pay off smaller debts first to gain momentum before tackling larger ones, regardless of interest rates.[21][22] He discourages the use of credit cards, and frequently demonstrates his adherence to this philosophy by showing the only cards he carries: two debit cards, a driver’s license, and a concealed-carry permit.[23][3][22]

Criticism

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Economists and financial professionals have criticized aspects of Ramsey’s teachings for diverging from mainstream economic theory. His advice to avoid borrowing during economic downturns runs counter to the concept of consumption smoothing, which suggests that individuals should borrow early in life and save during peak earning years.[24]

Critics also argue that Ramsey’s approach may not account for income inequality, emergency financial needs, or long-term investment strategies.[25][26][22] The "debt snowball" method has drawn mixed reviews in academic studies, with some research supporting its psychological benefits and others criticizing its higher cost compared to the “avalanche” method.[27][28]

Ramsey's investing advice has been challenged for its emphasis on stock-based mutual funds with load fees, and claims of consistent 12% annual returns on investments, which critics view as unrealistic.[29][30][31]

Journalist Helaine Olen argued in her book, Pound Foolish, that some of Ramsey’s financial advice "doesn’t even work on a base, mathematical level."[32]

Personal life

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Ramsey married his wife, Sharon, on June 26, 1982.[33] The Ramseys have three children: Denise Whittemore, Rachel Cruze, and Daniel Ramsey. All three work for Ramsey Solutions.[34]

Ramsey was inducted into the National Radio Hall of Fame in 2015.[35]

As of 2018, Ramsey had an estimated net worth of $55 million.[11] In 2021, he sold his custom-built home in Franklin, Tennessee for $10.2 million and began construction on a new home in the area.[36]

Ramsey is an evangelical Christian and described himself as fiscally and socially conservative.[22][5][11] He has blamed politics for what he considers Americans' economic dependence, and has said presidents should do "as little as possible" about the economy.[11]

In the fall of 2024, Ramsey announced on his show that he was voting for Republican Donald Trump in the upcoming presidential election, while encouraging his listeners to vote for candidates who best align with their values.[37][38]

Selected works

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  • Financial Peace (1992)
  • More Than Enough (1999)
  • Financial Peace Revisited (2002)
  • The Total Money Makeover (2003)
  • Dave Ramsey’s Complete Guide to Money (2011)
  • EntreLeadership (2011)
  • Smart Money Smart Kids (with Rachel Cruze, 2014)
  • The Legacy Journey (2014)
  • Baby Steps Millionaires (2021)
  • Build a Business You Love (2025)

References

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  1. ^ Dave Ramsey Show Newstalk 550 KTSA. San Antonio, Texas. September 3, 2012. Radio.
  2. ^ a b c d "Centennial Alumni: Dave Ramsey". Our Tennessee. University of Tennessee at Knoxville. April 13, 2017. Retrieved April 14, 2025.
  3. ^ a b c d e f Drury, Susan (May 31, 2007). "The Gospel According to Dave". Nashville Scene. Archived from the original on January 6, 2021. Retrieved April 13, 2025.
  4. ^ Patton, Alicia (September 18, 2023). "These are the Most Famous Alumni of Davidson County Schools". WKRN. Retrieved April 12, 2025.
  5. ^ a b c Ross Jr., Bobby (March 31, 2003). "Christian Financial Guru Crusades Against Overspending". Google News. Archived from the original on January 5, 2021. Retrieved April 14, 2025.
  6. ^ a b Ramsey, Dave; Ramsey, Sharon (2003). Financial Peace Revisited: New Chapters on Marriage, Singles, Kids and Families. East Rutherford: Penguin Publishing Group. ISBN 978-0-670-03208-2.
  7. ^ Ramsey, Dave (2024). Real Estate the Ramsey Way. Franklin, Tennessee: Ramsey Press. ISBN 979-8887820248.
  8. ^ "Company History". DaveRamsey.com. January 6, 2021. Archived from the original on January 6, 2021. Retrieved April 14, 2025.
  9. ^ Wilson, Hal (March 8, 2007). "Wilson Group Real Estate". Wilson Group Real Estate. Archived from the original on March 8, 2007. Retrieved April 14, 2025.
  10. ^ "Dave Ramsey". Ramsey Solutions. Retrieved April 14, 2025.
  11. ^ a b c d Alberta, Tim (March 11, 2018). "The Financial Whisperer to Trump's America". Politico. Archived from the original on March 11, 2018. Retrieved April 14, 2025.
  12. ^ Riddle, Scott B. (October 16, 2007). "'The Dave Ramsey Show' Premiers on New Fox Business Channel". Georgia Bankruptcy Blog. Retrieved April 14, 2025.
  13. ^ "Fox Business Bumps Dave Ramsey in Favor of Former Trader Eric Bolling". TV Week. Retrieved April 14, 2025.
  14. ^ a b 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 April 14, 2025.
  15. ^ a b Nieuwhof, Carey (October 3, 2023). "Episode 601: Dave Ramsey on Leading a Gen Z and Millennial Team, His Strategy for Successful Succession, and Rules for Working with Your Adult Kids". CareyNieuwhof.com. Retrieved April 14, 2025.
  16. ^ This Has Gotten Out of Hand! - Dave Ramsey Rant (Video). November 19, 2020. Retrieved April 14, 2025 – via YouTube.
  17. ^ Smietana, Bob (December 11, 2020). "Dave Ramsey, Christian personal finance guru, defies COVID-19 to keep staff at desks". Religious News Service. Retrieved April 14, 2025.
  18. ^ Lonas Cochran, 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.
  19. ^ If a $600 Stimulus Check Changes Your Life, Then You're Already Screwed!. February 11, 2021. Retrieved April 14, 2025 – via YouTube.
  20. ^ Ramsey, Dave (2024). The Total Money Makeover: A Proven Plan for Financial Peace (Expanded and Updated ed.). Nashville, Tennessee: Thomas Nelson. ISBN 978-1400342525.
  21. ^ White, Martha C. (August 16, 2012). "The Verdict Is In: Tackle Smaller Debts First". Time. ISSN 0040-781X. Retrieved April 14, 2025.
  22. ^ a b c d Bahler, Kristin (April 16, 2019). "Broke Millennials Are Flocking to Financial Guru Dave Ramsey. Is His Advice Any Good?". Money. Retrieved April 14, 2025.
  23. ^ Grisby, Lorna (February 17, 1997). "Digging Out of Debt". People Magzine. Archived from the original on January 16, 2021. Retrieved April 14, 2025.
  24. ^ Choi, James J. (2022). "Popular Personal Financial Advice versus the Professors". Journal of Economic Perspectives. 36 (4): 167–192. doi:10.1257/jep.36.4.167. ISSN 0895-3309.
  25. ^ David Chang, ChFC®, CLU® (October 29, 2022). "3 Reasons Not to Listen to Dave Ramsey". The Motley Fool. Archived from the original on August 11, 2023. Retrieved April 14, 2025.{{cite news}}: CS1 maint: multiple names: authors list (link)
  26. ^ Olen, Helaine (October 28, 2013). "The Prophet". Pacific Standard. Retrieved April 14, 2025.
  27. ^ Sweeney, Libby (January 18, 2019). "Debt Snowball Vs. Debt Avalanche: The Best Way To Pay Off Credit Card Debt". Forbes Advisor. Retrieved April 14, 2025.
  28. ^ "Paying Down Credit Card Debt". Boston University Questrom School of Business. Retrieved April 14, 2025.
  29. ^ Carrns, Ann (May 13, 2011). "Dave Ramsey's 12% Solution". The New York Times—Bucks Blog. Retrieved April 14, 2025.
  30. ^ Stoffel, Brian (June 3, 2013). "Dangerous Retirement Planning Advice From Financial Guru Dave Ramsey". The Motley Fool. Retrieved April 14, 2025.
  31. ^ Salmon, Felix (September 26, 2013). "Save like Dave Ramsey...Just Don't Invest Like Him". Money. Archived from the original on February 12, 2021. Retrieved February 2, 2021.
  32. ^ "Money spinners". Financial Times. 2013.
  33. ^ Ramsey, Dave (January 26, 2022). "Post on Dave Ramsey's 40h wedding anniversary". Facebook. Retrieved April 14, 2025.
  34. ^ "Leadership". Ramsey Solutions. Retrieved January 20, 2025.
  35. ^ "Dave Ramsey". Radio Hall of Fame. Archived from the original on January 5, 2021. Retrieved January 5, 2021.
  36. ^ Zap, Claudine (November 24, 2021). "Dave Ramsey Sells Franklin, TN, Mansion for $10.2M". Realtor.com. Retrieved April 14, 2025.
  37. ^ "Finance Whiz Dave Ramsey Reveals Why He's Voting for Trump". The Daily Beast. October 19, 2024. Retrieved April 14, 2025.
  38. ^ Dave Ramsey Explains Who He’s Voting For (Video). October 15, 2024. Retrieved April 14, 2025 – via YouTube.

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