Dave Ramsey’s 3 Most Controversial Money Tips — And Why They Work
Written by
Laura Bogart
Edited by
Molly Sullivan
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To say that Dave Ramsey can be a controversial figure would be an understatement. Though millions of people have turned to Ramsey’s podcasts, YouTube videos and bestselling books for advice about becoming financially independent, others aren’t so fond of his guidance.
Whether they object to his trademark bluntness — Ramsey won’t hesitate to call an idea stupid — or what they see as outdated, more conservative approaches to money management, Ramsey has his detractors. In dismissing his insights, critics often point to a few of his more “controversial” money tips.
However, a closer look reveals that the criticisms don’t always hold up. When you factor in human behavior and the goal of achieving financial freedom, Ramsey’s advice often works remarkably well.
Cut Up Your Credit Cards
Why It’s Controversial: Ramsey is no fan of credit cards, famously refusing to have one himself. He prefers debit cards, claiming they can do everything a credit card can — except get you deeper into debt.
This advice gives many financial experts the vapors. They argue that using credit cards responsibly helps build your credit score — that all-important number lenders care deeply about — while also earning you perks like cash back or travel rewards.
Why It Works: Ramsey likened credit card usage to a game, where the promise of rewards incentivizes people to keep swiping — even as they accumulate debt. While those perks may feel good in the moment, they rarely lead to lasting wealth.
When his firm, Ramsey Solutions, studied more than 10,000 millionaires, none credited their wealth to airline miles or credit card points. Quelle surprise.
He warned that juggling multiple credit cards is essentially asking for trouble. The ballooning number of Americans mired in credit card debt suggests he may have a point.
“Look, you might think you can outsmart the system and play the credit card game to your advantage. But it’s not worth the risk,” he said. “Just ask the millions of people trapped under the weight of credit card debt right now.”
His suggestion? Spare yourself the stress and use cash instead. It also encourages more intentional spending.
Start With a $1,000 Emergency Fund
Why It’s Controversial: The very first step of Ramsey’s Baby Steps program involves setting aside $1,000 in a starter emergency fund. That should be acceptable, right? Not to his critics, who argue that $1,000 is hardly enough for a real emergency and would be better used to pay off high-interest debt.
Why It Works: These critics may have glossed over the word “starter” in “starter emergency fund.” Ramsey has never claimed $1,000 is sufficient for every emergency — it’s just a manageable, meaningful way to begin saving.
“$1,000 … was never designed to be enough. It’s enough to buy an alternator for a car or a tire. It’s enough to take your kid to the pediatrician if they’re sick. But it’s not enough to be a real emergency fund,” he said. “It’s enough to keep the little things from kicking your butt off the get-out-of-debt wagon.”
That initial $1,000 helps people stay on track as they work toward other goals — such as paying off debt and building a full emergency fund with three to six months’ worth of expenses (Baby Step 3, for the curious).
Frankly, it seems like a commonsense approach to avoid losing both your money and your motivation on the path to financial independence.
Use the Snowball Method To Get Out of Debt
Why It’s Controversial: Another core piece of Ramsey’s Baby Steps involves using the debt snowball method. After listing your debts, you attack the smallest one with everything you’ve got, regardless of interest rate, while making minimum payments on the rest. Once the smallest debt is paid, you roll those payments into the next-smallest debt — and repeat until you’re debt-free.
Critics argue that this method leaves high-interest debt on the back burner, potentially extending the total repayment period.
Why It Works: Despite his straight-shooter persona, Ramsey shows a surprising sensitivity to human behavior. He knows people are more likely to stick with a debt payoff plan when they see early wins — even small ones.
In a recent interview for GOBankingRates’ Top Money Experts series, Ramsey elaborated on his philosophy: that positive, sustainable behaviors carry people further in the long run.
“Knocking out that first debt gives you a quick win and builds momentum,” Ramsey said. “Once you see progress, you’re fired up to keep going. If math was the only issue, most people wouldn’t be in debt to begin with — it’s about changing habits and attacking debt with intensity.”
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