Dave Ramsey facts for kids
Quick facts for kids
Dave Ramsey
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Ramsey in 2023
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| Born | September 3, 1960 Antioch, Tennessee, U.S. |
| Occupation | Personal finance consultant, radio show host, author |
| Alma mater | University of Tennessee (BS) |
| Subject | Personal finance |
| Notable works | The Total Money Makeover |
| Spouse | Sharon Ramsey |
| Children | 3, including Rachel Cruze |
David Lawrence Ramsey III (born September 3, 1960) is an American expert on money and finances. He is known for his radio show, books, and company, Ramsey Solutions. He helps people learn how to manage their money better. His most famous book is The Total Money Makeover.
Contents
Early Life
Dave Ramsey was born in Antioch, Tennessee. His parents were successful in real estate. When he was 18, he started selling real estate too. He did this while studying at the University of Tennessee, Knoxville. He earned a degree in finance and real estate.
His Career Journey
By 1986, Dave Ramsey had built a large real estate business. He had properties worth over $4 million. But then, new banking rules came out. Banks asked him to pay back his loans, which totaled $1.2 million. He couldn't pay them back and had to file for bankruptcy in 1988. This means he legally declared he couldn't pay his debts.
After this tough time, Dave started helping others with their money. He began by giving advice to couples at his church. In 1988, he started his own company. It was first called The Lampo Group, but now it's known as Ramsey Solutions. In 1992, he wrote his first book, Financial Peace.
Dave also started a radio show in 1992. It was first called The Money Game. Later, it became The Dave Ramsey Show. On this show, he answers calls from people asking for financial advice.
In 1994, he launched Financial Peace University. This is a course that teaches people about personal finance. It uses videos and lessons to help families learn how to manage their money.
What He Teaches
Dave Ramsey teaches people how to get out of debt. He suggests using something called the debt snowball method. With this method, you pay off your smallest debts first. Once that debt is gone, you use the money you were paying on it to pay off the next smallest debt. This helps you feel like you're making progress.
He also believes people should avoid using credit cards. He often shows that he only carries debit cards and his driver's license. Dave encourages using cash for daily spending. He suggests an envelope system. This is where you put cash for different spending categories (like food or fun) into separate envelopes each month. You only spend the cash in those envelopes.
Dave also advises against taking out student loans for college. He believes there are other ways to pay for education without going into debt.
How Effective Are His Ideas?
Some people say that Dave Ramsey's advice is a "one-size-fits-all" approach. This means it might not work for everyone. They point out that his advice might not consider different income levels or unexpected money problems.
The debt snowball method is often discussed. Some studies show it works well, while others suggest different methods might be better. His advice on investing has also received comments. Some experts suggest looking at different types of investments beyond just stocks.
Personal Life
Dave Ramsey married his wife, Sharon, in 1982. They have three children: Denise, Rachel Cruze, and Daniel. All three of his children work for Ramsey Solutions.
In 2015, Dave Ramsey was honored by being inducted into the National Radio Hall of Fame.
Dave Ramsey is an evangelical Christian. He describes himself as a conservative person. He believes in traditional values, both in money matters and in culture.
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Ramsey in 2023
