Dave Ramsey

Ramsey was born and raised in Antioch, Tennessee. He graduated from the College of Business Administration at University of Tennessee, Knoxville, where he earned a Bachelor of Science degree in Finance and Real Estate.[2][3] As a real estate investor, doing business as Ramsey Investments, Inc., he built a rental real estate portfolio worth more than $4 million by 1986.[4] The bank that was financing his real estate was sold to a larger bank, which demanded immediate repayment on the loans. He was unable to pay, and eventually filed bankruptcy in September 1988.

After recovering financially, Ramsey began counseling couples at his local church. He attended workshops and seminars on consumer financial problems. Ramsey developed a set of lessons and materials based partially on his own experience and partially on works and teachings by Larry Burkett, Ron Blue and Art Williams of the A.L. Williams company, now Primerica.[5] In 1992 he wrote his first book, Financial Peace.[4]

Ramsey is a devout Evangelical Christian.[6] He has been married to his wife Sharon for 38 years. They have three children and reside in Franklin, Tennessee.[4]

Ramsey's syndicated radio program, The Dave Ramsey Show, is heard on more than 500 radio stations throughout the United States and Canada, in podcast format, on iHeartRadio, the Dave Ramsey Show iOS application, live on YouTube, as well as live audio and video on DaveRamsey.com.[7][8] He has written numerous books including five The New York Times bestsellers. His books and broadcasts advocate a fiscally disciplined approach to personal and household finances, including the strict management of debt, and often feature a Christian perspective. Ramsey was named the 2009 Marconi Award winner for Network/Syndicated Personality of the Year,[9] and was inducted into the National Radio Hall of Fame in 2015.[10]

In 2014, he rebranded his company and changed its name from The Lampo Group, Inc. to Ramsey Solutions.[11] It is headquartered in Franklin, Tennessee, oversees six divisions geared toward financial education.[12][13]

Ramsey has been featured on many media outlets including The Oprah Winfrey Show, 60 Minutes, and The Early Show. He recorded a pilot and six unaired episodes of The Dave Ramsey Project[14] for CBS. He was the host of the television program The Dave Ramsey Show, which aired on the Fox Business Network until June 2010.[15]

In 1992, Ramsey started his radio career by co-hosting The Money Game with Roy Matlock of Primerica. Over time, this local show on one radio station in Nashville turned into The Dave Ramsey Show. With a combined listenership of over 12 million weekly, the show is available on more than 575 radio stations and other channels. In 2007, the Fox Business Network launched a television show under the same title, but canceled the show in June 2010. The show is also available via podcast and is recorded at Ramsey Solutions in Franklin, Tennessee.

Ramsey supports the debt snowball method, through which debtors pay off their lowest balance debt first rather than paying off their highest interest rate debt first. While this approach has been criticized, research done by the Kellogg School of Management has found that the debt snowball method is generally effective.[16][17] The small victories give debtors motivation.[18][19][17][20] A 2016 study by the Harvard Business School found that people who used the snowball method to pay off their smallest account first, paid down more of their debt than those who used other methods.[21]

Ramsey claims that investors can get a 12% average annual return, which is the rate he uses in financial analyses.[22] Ann Carrns responded that using an average annual return rate is misleading and that the compound annual growth rate is a better measurement for planning investments.[23] Helaine Olen, author of the book "Pound Foolish: Exposing the Dark Side of the Personal Finance Industry" quoted in Yahoo! Finance stated that a 12% return is unrealistically high.[24] According to The Motley Fool, following Ramsey's calculations could cause individuals to be seriously under-invested for retirement.[25]

Ramsey recommends investors to hold all their investments in stock mutual funds, but their volatility increases risk compared to bonds.[26] He recommends that retirees withdraw 8% of their retirement fund each year.[27]

In 2010, Ramsey received criticism on social media sites for building a large and lavish home. He responded that the cost of the home was paid in cash, represented a very low percentage of his net worth, and had already been used to host many fundraisers for ministries, charities and community causes.[28]

Ramsey strongly opposes gossiping, especially about employers. His anti-gossip policies led to allegations of bullying from former employees. [29]

• The Total Money Makeover
• The Dummy's Complete Guide to Money
• Smart Money Smart Kids (co-authored with his daughter Rachel Cruze)
• The Legacy Journey
• EntreLeadership
• The Money Answer Book
• Financial Peace: Restoring Financial Hope to You and Your Family
• The Financial Peace Planner: A Step-by-Step Guide to Restoring Your Family's Financial Health
• The Great Misunderstanding
• More Than Enough

• Chris Hogan
• Envelope budgeting
• Talk radio

Further Reading

• Drury, Susan (May 31, 2007). "The Gospel According to Dave". Nashville Scene. Retrieved July 16, 2007.
• Olen, Helaine (October 28, 2013). "The Prophet". Pacific Standard. Retrieved October 29, 2013.

• Official website
• Dave Ramsey on CBS' 60 Minutes (transcript)
• 2003 profile by This American Life