Total Money Makeover. Financial Peace University.
Do you recognize these?
They’re Dave Ramsey’s programs on getting out of debt for good.
The jist of Dave’s program is to put an absolute strangle hold on any and all of your discretionary expenses and put every spare dollar to paying off your debt.
Littlest debt first, then moving on to the larger debt. This is your “debt snowball,” as he calls it.
No more starbucks, no more vacations, no more luxuries, period.
Buy used and pay with cash, for EVERYTHING.
“Live like nobody else now so that you can live like nobody else later,” is the motto.
It all sounds logical. It all is logical.
It makes sense.
…
BUT…
Something about the whole program has always just rubbed me the wrong way.
Back in the day I, for real, went to Kregel book store (when those still existed), and, for 2 or 3 nights in a row, I sat in one of their chairs and read the whole book. I pulled the ultimate Dave Ramsey (figured out how to pay as little as possible for something) on Dave Ramsey’s own product.
The book was ok. I enjoyed the read.
But something in my young brain just didn’t mesh with the philosophy. I had no idea how to pinpoint what it was the didn’t sit right. It all made logical sense.
and he has a huge mob of devoted followers. Many of them become “certified” teachers and coaches for him.
So what was my problem? Who was I to cast doubt on his program?
But as I got a few years older and, hopefully, wiser, the thought occurred to me that none of Dave’s “followers” are doing, in any way, what Dave himself does.
Typically, when a mentee is in the process of training to become like his mentor, or a protege is working to become like the master, he/she is watching, learning and MIMICKING the actions of the master.
He/she is following in the footsteps of and doing the same kinds of things that the teacher did or is doing.
And that’s where my beef with the program comes in…
I don’t see Dave Ramsey skimping on starbucks. I don’t know what he drives but I bet he did not buy a used tour bus with cash. It does not seem like Dave or HIS BUSINESS is obsessed with how to cut, cut, cut on expenses.
But this is what he teaches.
What I don’t see him teaching, at all, is exactly what he is doing. Which is:
- Become an absolute EXPERT on one niche topic (For Dave, personal finance)
- Start writing about it and speaking about it at every possible chance you get
- Think about it, dream about it, become obsessed with it
- Write, write, write
- Publish, publish, publish
- Speak, speak, speak
- Start a blog
- Start a podcast
- Write a book
- Partner up with churches
- Get on the radio
- Get on TV
- Rave, rave, rave
- Become so good, so knowledgeable, so expert that you cannot be ignored.
- Once you’ve got a following, create a teaching program where your most devoted fans can become certified teachers of your thing
- In a nutshell…. GET INTO BUSINESS FOR YOURSELF!
This is what Dave did and does. And it enabled him to not have to worry one iota about cutting expenses.
He focused on EARNING, not on CUTTING. He focused on becoming more valuable so that the money flowing to him was abundant and growing and seemingly, endless.
He got into business. A business of HIS OWN. And he was and is a freakin MASTER at it.
So why is he encouraging everyone to stay in their current job and focus on living on less and less and less?
It just doesn’t make sense to me.
Doesn’t that kind of piss you off? It does me.
“Do what I say, not what I do.” – this is pretty much what he’s saying to his flock.
…
Oh well. I’m sure he’s done more benefit than harm. I just don’t understand why he wouldn’t encourage people to take the same path he took. A path that has him living the high life… way sooner than the average person in his program ever gets there.
Ya know who DOES preach what he practices though? And who takes the exact opposite route to financial freedom than Dave?
Ramit Sethi, that’s who. I’ve followed his stuff for years and I think his way is a much healthier, more abundant route to to take.
If you’re interested in that kind of stuff, check him out.
I will certainly steer my own kids down the Ramit path.
Sorry, Dave.
