Dave Ramsey

Career

His firm Ramsey Investments was focussed on real estate investments and soon grew into a big multi-million dollar empire. But with stricter market regulation, his real estate business went into hard times. His creditor company was taken over by a larger bank and he was asked to pay back his outstanding amount in a short duration which made him bankrupt.

Thereafter, Ramsey started counseling in churches and offered private counseling on financial matters to couples. He began to develop lessons on financial planning and his first book Financial Peace was published in 2010 on popular demand.

Investment Advice-Use Cash

He goes by Biblical teachings when it comes to providing financial advice. The Proverb 24:7 in the Bible tells us that the rich rule the poor and debtors are slaves of lenders. His advice is to keep off debt. He preaches what he says- he decided not to borrow a penny after his real estate business debacle. His website doesn’t accept credit card payments, only debit cards. He advises his disciples to go for 15 years fixed mortgage and nothing else by way of debt.

He has devised a formula to utilize your income- devote 10% to charity, 15% for retirement and keep saving money for your child’s college education. His disciples use cash for all purchases. He feels that if you use cash for purchases, you are likely to spend less than what you would spend using credit or debit cards.

The Dave Ramsey Show

The Dave Ramsey Show was a popular program that was aired on the Fox Business Network until 2010. It was a highly popular program and was first produced as a pilot for CBS but wasn’t aired. Since 2013, Dave Ramsey Show was televised as a live video feed featuring the 3-hour call-in show.

Ramsey Solutions - Debt Free Business

Ramsey Solutions is a privately held company which is completely debt-free and engaged in the business of providing financial education to schools, military, church ad in business. The company has also developed a debt software tool to monitor all credit card debts, automobile loans, educational loans and consumer loans in a single dashboard. The company also deals with online selling of school books, CDs, DVDs, envelope systems, and budgeting software. It was founded in 1992 in Tennessee by Dave Ramsey. The company now has 500 team members.

Criticism and Controversies

David L. Ramsey III, widely known as Dave Ramsey, has faced several criticisms and controversies over the years, particularly concerning his company's workplace policies, responses to the COVID-19 pandemic, and financial advice.

Workplace Policies and Legal Actions

Ramsey Solutions, the company founded by Dave Ramsey, has been scrutinized for its strict workplace policies influenced by Ramsey's Christian beliefs. In 2021, a lawsuit alleged that an employee was terminated after disclosing her pregnancy outside of marriage, purportedly violating the company's "righteous living" policy. Another case involved an employee who claimed she was forced to resign after revealing her sexual orientation. These incidents have raised concerns about potential discrimination within the organization.

COVID-19 Response

During the COVID-19 pandemic, Ramsey Solutions reportedly maintained in-person operations despite health guidelines, with allegations of discouraging mask usage and other preventive measures. A former employee filed a lawsuit claiming he was dismissed for adhering to COVID-19 precautions, alleging a "cult-like" work environment where such measures were mocked. While a U.S. district judge initially dismissed the lawsuit, the United States Court of Appeals for the Sixth Circuit overturned the dismissal in August 2024, allowing the case to proceed.

Financial Advice Critiques

Ramsey's financial guidance has also been contested. Critics argue that his "one-size-fits-all" approach may not account for individual financial situations, potentially leading to adverse outcomes for some. His endorsement of a timeshare exit company accused of deceptive practices led to a $150 million lawsuit filed by listeners who alleged they were defrauded.

These controversies have prompted discussions about the ethical and practical implications of Ramsey's business practices and financial advice.

Entre Leadership

EntreLeadership summits are held every year where leading speakers talk to small entrepreneurs on how to manage their business. It teaches participants on how to become better leaders, how to build a team in your venture, and how to grow your company to attain profits in future. Many new entrepreneurs have reported recording profits for the first time after attending the summit and following the principles learned there. EntreLeadership book is also available that helps you get practical lessons on how to build and grow your business.

Every Dollar

Every Dollar is an online budgeting tool developed by Ramsey Solutions that is downloadable on mobile on both Android and IoS.

Personal Life

In 1982, Dave married Sharon Ramsey. Together, they have three children: Denise Ramsey, Rachel Cruze, and Daniel Ramsey. Rachel Cruze has followed in her father's footsteps, becoming a financial author and speaker; she co-authored the book "Smart Money Smart Kids" with Dave.

The Ramsey family resides in the Nashville, Tennessee area. In 2021, Dave sold his custom-built home in the Nashville area for $10.2 million after living there for over a decade. A spokesperson mentioned that he was having another home built in the area. Dave Ramsey is a devout evangelical Christian, which significantly influences his financial teachings and perspectives. He describes himself as conservative, both fiscally and culturally. His faith-based approach is evident in his financial counseling and educational programs, where he often integrates Christian principles.

Throughout his career, Dave has been recognized for his contributions to financial education and broadcasting. In 2009, he received the Marconi Award for Network/Syndicated Personality of the Year. He was inducted into the National Radio Hall of Fame in 2015. 

Dave Ramsey's personal experiences, including overcoming financial challenges, have shaped his approach to financial education, emphasizing debt-free living and financial peace. His family remains actively involved in his ventures, contributing to the ongoing success of Ramsey Solutions.