Dave Ramsey is an author, radio host and provider of financial advice. He is the host of the radio show “The Ramsey Show” and the author of “The Total Money Makeover”. He also runs Ramsey Solutions, a service that helps customers learn to budget and reduce debt.
Recognized by GOBankingRates as a Top Money Expert, here he shares the investment rules he used to build his wealth, and how you can use these rules to find financial success.
What’s the one piece of money advice you wish everyone would follow?
Cut up your credit cards and get out of debt. You need to get on a written, monthly budget and tell your money where to go, instead of wondering where it went. You might even feel like you got a raise.
What common money advice do you think people should not follow?
Don’t get caught up in get-rich-quick schemes or leverage debt to try to build wealth. Common sense is an oxymoron when it comes to most financial advice today.
What’s the best thing you’ve personally done to build your wealth?
Playing longball and investing consistently. Mutual funds are the way to go. They cast a wide net across many companies, helping you avoid the risks that come with the trendy stuff, like crypto. Just remember, match beats Roth beats traditional on figuring out where to invest for retirement first.
What’s the biggest financial mistake you made, and what did you learn from it?
I hit rock bottom and filed for bankruptcy in 1988. I had built my real estate portfolio using debt, then the bank called in my loans. I met God on the way up but got to know Him on the way down. Without making those mistakes with a lot of zeros on the end, I wouldn’t have learned to manage money the right way. That’s why Ramsey Solutions was built around “God’s and Grandma’s way” of handling money.
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Jaime Catmull contributed to the reporting for this article.