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He’s incredibly averse the debt, which is just his ideological stance, and this leads him to provide very bad advice. You’re not that likely to go bankrupt foll

He’s incredibly averse the debt, which is just his ideological stance, and this leads him to provide very bad advice. You’re not that likely to go bankrupt following his advice (it’s not impossible, I’ve seen him advise some very questionable house sales), but you’re much more likely to turn 65 and realise you can’t afford to retire following his advice, than you are following advice from an actually qualified adviser. If you had some extra disposable income today, and some low fixed rate debt, Ramsey would advise you to pay it down, even though almost any other investment would be an obviously better choice. Providing people financial advice is regulated for a reason. The advice needs to be tailored to the person and their own circumstances. Ramsey never does this, he only has one script. If you happen to be a person who’s going to benefit from his approach (which I’m sure there’s a lot of people who would), then that’s good for you, but whether his advice is good or bad for any particular person is just up to chance. This is very irresponsible, a very morally dubious way for somebody to make their money, and leads to him providing plenty of just objectively bad advice.

red-iron-pine 2y ago
Dave Ramsey's advice is sub-optimal, but he's aimed at people who can't handle money, and is telling them to focus on crushing their debt. It's not an optimal strategy for people who can handle the abstraction of interest rates, inflation, etc., but if his followers could handle those concepts, and had the impulse control to back it up, they wouldn't be heavily in debt to begin with. It's reasonable advice for the demographic that needs it, and in that sense it's fine. The HN tech bro crowd, who knows enough, and has enough cash, to run Christmas Tree option calls, has no business following Ramsey's advice.

red-iron-pine 2y ago

Dave Ramsey's advice is sub-optimal, but he's aimed at people who can't handle money, and is telling them to focus on crushing their debt. It's not an optimal strategy for people who can handle the abstraction of interest rates, inflation, etc., but if his followers could handle those concepts, and had the impulse control to back it up, they wouldn't be heavily in debt to begin with. It's reasonable advice for the demographic that needs it, and in that sense it's fine. The HN tech bro crowd, who knows enough, and has enough cash, to run Christmas Tree option calls, has no business following Ramsey's advice.