Get Out of Debt While Making More Money!
- Episode 33: Getting Healthy, Spiritually
- Episode 032 Getting Healthy Part 2: Physical Exercise
- Episode 031 Getting Healthy Part 1: The Benefits of Adopting a Plant-Based Diet
- Episode 030 Is GOVERNMENT Above the LAW? | The DO NOT CALL List | Bankruptcy | Insider Trading and Martha Stewart
- Episode 029 Investing and Trading | The Oracle of Omaha, Warren Buffett
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What I Learned About Dave Ramsey
Facts I learned about Dave Ramsey
- Dave Ramsey was born in September 3, 1960. In Antioch, Tennessee.
- He followed his dream in his twenties of starting a business called Ramsey Investments Inc.
- He went from nothing like normal person and quickly built his real estate investing company.
- By the age of 26, he had over $4 million in rental real estate with a personal net worth of $1 million owning hundreds of rental units and running 3 construction rehab crews.
- That’s his first rags to riches story. And it’s pretty amazing.
What was the turning point in his life?
- What happens next is pretty wild shapes the next part of his life making him the Dave Ramsey most people know today.
- As he tells his story in Entreleadership, the business book I’m recommending today, the primary mortgage lender that financed almost all his real estate rentals was sold to another bank.
- That other bank took a look at their portfolio and say that there was a 20 something year old holding some risky loans.
- They decided to limit their risk and call the notes meaning the loans Dave Ramsey owed in the amount of $1.2 million were due within a certain amount of time. Sixty days later, another bank called notes in the amount of $800,000.
- Dave says he spent the next 2 years losing everything he owned.
- He was sued multiple times, foreclosed on repeatedly and went bankrupt.
- He says, “There I sat with a new baby, a toddler and a marriage hanging on by a tread. A broke and broken man. I was so scared and scarred that I surrendered completely.”
How did Dave Ramsey recover from all this and make his money?
- So far, we’ve heard that Dave Ramsey went from rags to riches and now back to rags again. He’s a normal person again. He could’ve gotten a normal job, maybe at a bank or something, but that’s not what he did.
- He went to every workshop and seminar dealing with handling money problems. He started counseling couples at his church.
- He put together some simple lesson and things he learned from his own experiences, Larry Burkett and others.
- He wrote his first book in 1992 called, Financial Peace and started his radio career that same year.
- He and his team have also wrote several best-selling books since then.
- Dave Ramsey is also very involved in rental real estate, but the difference now is he pays cash for all rentals.
- His net worth today is roughly $55 million.
- So, how did he go from rags to riches again? He started a business helping people to solve money problems like he had, wrote a book, got on the radio, wrote some more books and got back into rental real estate.
Other interesting facts about Dave Ramsey
- No doubt Dave Ramsey has his critics.
- He has critics that don’t like his “Debt Snowball method” paying off the lowest amount first regardless of the interest rate instead of paying the highest interest rate first. I’ve found that both of them work as long as the person who’s in debt works and sticks to either of those methods.
- He also has critics on the amount of interest he tells his listeners to use as a baseline of 12% per year on average. They say it’s unrealistic and the amount people will have at retirement will be much less.
- I want to know if there are people out there who estimated like Dave teaches and they were expecting $3 million dollars and it’s more like a $1 million dollars after 30 years of investing. The only thing that sends red flags for me is when Dave talks about retirement and then throws out fractions asking the questions, “What if I’m half wrong? What if I’m three quarters wrong? What if I’m 7/8s wrong?” That kind of scares me because if you think you’re right, I would be confident and say something like, “I know I’m right. This is what’s going to happen. Or at least have a little bit of conviction and say, I believe I’m right on this.”