A Q&A With Dave Ramsey: Money Advice (2024)

Dave Ramsey

There’s a reason why over 12 million people listen to The Dave Ramsey Show every week.

There’s a reason why millions of people have bought Dave Ramsey’s New York Times bestselling books.

There’s a reason why hundreds of publications run his “Dave Says” column.

There’s a reason why Dave has been known as one of America’s top financial experts.

Dave Ramsey understands money and makes winning financially simple.

Dave makes it easy for anybody to take action immediately towards creating a greater financial future.

Recently, I had the opportunity to interview Dave.

Here’s what he had to say...

Adam: How and when did you know you'd be doing what you're doing today? Were there a series of events? An experience? A mentor?

Dave: Right out of college, I began buying and selling real estate. Starting from nothing, I ended up with about four million dollars in real estate and a net worth of a million dollars. But I borrowed too much money and the bank got sold to another bank and they called our loans. My wife and I spent the next two and a half years of our lives losing everything we owned. So with a brand new baby, a toddler and a marriage hanging on by a thread, I got the “opportunity” to start again. For the next few years, I started figuring out how money works. I was still selling real estate, but I began applying new ideas like a budget, an emergency fund, and getting out of debt and staying out of debt—common-sense stuff. When it started working for us, people noticed. They’d walk up and ask if I can help them. I found out I wasn’t the only one who did stupid things with money. That’s when I started counseling, speaking and writing about all I had learned. After I wrote my first book, I was invited on a little broke radio station in Nashville to talk about money and answer people’s questions. We didn’t think anyone was even listening! Twenty-five years later, The Dave Ramsey Show is still helping people. We’re on more than 585 radio stations across the country.

Adam: What are the top nuggets of financial wisdom you'd give to Millennials in today's time?

Dave: It’s really the same advice for anyone: If you can’t afford it, don’t buy it. Don’t lease that car, don’t sign up for that credit card, don’t bury yourself in student loans, and don’t retire broke! The time is now to start saving. Start a budget today so that you know where every dollar is going. We have a free app at EveryDollar.com that will help you make budgeting a habit. If you would invest $100 a month from age 25 to 65 in a good mutual fund, you can retire one day with dignity.

Adam: How would you set yourself up for financial success if you were a 24 year old college graduate with tons of student loan debt?

Dave: You got to knock out that debt. You’re already used to living like a broke college student, keep living that way because you’re broke. You’re not going out to eat. You’re not digging yourself a deeper hole by getting a credit card and swiping everything in sight. You’re throwing every dollar you can find at that debt. Get it out of your life. That’s how you set yourself up for success. Live like no one else so that later you can live and give like no one else.

Adam: If you were able to design a course that would be taught to every kid in high school and college about money, what would be the first lesson?

Dave: We did design a course. In fact, Foundations in Personal Finance is the industry-leading and most life-changing financial literacy curriculum anywhere. It’s taught in middle schools, high schools and colleges all across the country. There is even a homeschool edition. From the first lesson on, it empowers young people to make good financial decisions setting them up to win with money their entire lives.

Adam: What advice would you give first-time investors who want to make the best investments?

Dave: When you’re debt-free and you have a fully-funded emergency fund of three-to-six months of household expenses, invest 15% of your household income in tax-advantaged retirement accounts like a 401(k) or Roth IRA. We suggest you invest in good growth stock type mutual funds with great long term track records. There are great financial advisers out there that can help you understand what you’re investing in. Find one you trust.