This Dave Ramsey Scam Artist Must Be Stopped
This is an article on the evil Dave Ramsey Scam and the cult like followers of his baby steps. Don't be sucked into this life destroying plan!
Each baby step myth is presented here and then completely debunked:
- $1,000 Emergency Fund - Innocently enough the Dave Ramsey Scam starts here. Save $1,000 emergency fund before you dive into the other baby steps? What's the point? What does Ramsey think credit cards are for, just to sit there and collect dust?
- Pay Off all Debt Except the House - If he didn't lose you with the ridiculous notion of saving for a minor emergency, this one will certainly make you jump off the Dave Ramsey Fraud Ship. You need a car don't you? Therefore you need a car loan, don't you? Hello Ramsey, anybody home up there? How about a FICO score? You will never, ever make it life without a good FICO score. Absolutely impossible. Car loans and credit card debt are facts of life and as long as you don't let them get out hand, they are something you are just going to have to live with.
- Fully Fund an Emergency Fund of 3-6 Months of Living Expenses - You know the old saying "Layoffs, medical bills and roof replacements happen". Apparantely this Dave Ramsey character doesn't know that when these major expenses "happen" that there are things called bankruptcy and foreclosure to take care of them.
- Start Saving %15 for Retirement - How in the world is this possible with unforseen emergencies, car loans and credit card debt obligations. Hey, is my argument starting to fall apart? Of course not! Oh, did I say that out loud?
- Start Saving for the Kid's College - Not necessary. Student loans will take care of this. My $82,000 in student loans only took me 17 years to pay off. Off course I had to double up on payments to do it in such quick fashion but as you can probably tell by now, I have a pretty financially sound mind.
- Pay off the House Early - Utter nonsense. The Dave Ramsey Scam doesn't get any more ridiculous than this. The $10,000 of interest I pay each year on my home loan SAVES ME $2,000 on taxes EACH AND EVERY YEAR! I'm sorry I am shouting but DO THE MATH!!!
- Build Wealth and Give - Obviously there is no way to build wealth with all of these mandatory monthly payments sucking the money and life out of you and I. Of course giving is redundant since everyone with half a brain knows that Washington takes care of this for us.
Sorry to all you baby steppers and potential baby steppers. The Dave Ramsey Scam has been exposed. But honestly, do you really want to be debt free and have no credit card payments or car payments? Why not have student loan payments into your 40's and house payments until the day you die. You can always rent after bankruptcy and foreclosure if you need to. And bankruptcy fraud is rarely prosecuted. Why should you be any different than the average person? Geez this Ramsey guy is a jerk.
So sit back, relax and take a deep breath and start to think realistically. Times are different now than they were during Grandpa and Grandma's lives when they used the"pay as you go" approach. Go out and buy an new car, another gadget or maybe even go all out and buy house you can't afford. Lots of other people are doing it so how could that many people be wrong. Cleanse yourself of this Dave Ramsey plan and join the real world.